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© Alan G. Robinson, 2015
THE IDEA-DRIVEN ORGANIZATION Unlocking the Power in Bottom-up Ideas
Dr. Alan G. RobinsonIsenberg School of Management
University of MassachusettsAmherst, MA 01003
Email: [email protected]: (413) 545-5640
National Fund for Workforce Solutions Annual MeetingBaltimore, June 18, 2015
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2 © Alan G. Robinson, 2015
Time
Pro
duct
ivit
y
Natural Rate
Natural and Managed Rates of Improvement and Innovation
Managed Rate
Advantage
THE CENTRAL FACT
Front-line workers see a great many problems and opportunities that their managers don’t.
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Green-Belt Projects1 Million
Black-Belt Projects
1 Million
THE TIP OF THE ICEBERG
Idea System9 Million
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MORE TIP-OF-THE-ICEBERG EXAMPLES
Technicolor 81/19
U.S. Chemical Company 85/15
Hickory Chair 80/20
Dana 80/20
Thedacare 80/20
NAVSEA (RI projects) 83/17
PriceWaterhouseCoopers Study 80/20
JMA Study 70/30
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THE 80/20 PRINCIPLE OF IMPROVEMENT
Most of what managers need to improve their units and meet their strategic goals is invisible to them, but not to their front-line employees.
• In organizations with effective idea systems, roughly 80 percent of overall performance improvement comes from front-line ideas.
• If you are not set up to listen to and act on large numbers of front-line ideas you are using only a fifth of your improvement engine.
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EXAMPLES OF GOOD IDEA SYSTEMS
Boardroom Inc. 104 ideas per person per year
Wainwright Industries 87 ideas per person per year
90 percent implemented
Gulfstream 33 ideas per person per year
Brasilata 185 ideas per person per year
92 percent implemented
Clarion Hotel – Stockholm 67 ideas per employee per year
Autoliv 123 ideas per employee per year
Milliken Corporation 115 ideas per employee per year
Toyota USA 100 ideas per employee per year
(Thedacare 6 ideas per employee per year)
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© Alan G. Robinson, 2015
THE DEFINITION OF LEAN
When your employees are problem-solving and generating and implementing ideas that further the organization’s strategic goals, on a daily basis, and as a matter of the organization’s culture and the way it operates.
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CARLSON’S LAW
Top-down innovation is orderly but dumb.
Bottom-up innovation is chaotic but smart.
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THE MULTIFACTED CONNECTIONS BETWEEN A HIGH-PERFORMING IDEA SYSTEM AND INNOVATION
• A high-performing idea system allows you to perform at levels that push the better-faster-cheaper performance envelope much farther than competitors.
e.g. Inditex and Zara
• Setting up a high-performance idea system forces you to seek and promote the right behaviors in leadership, and to realign the organization, which removes many of the barriers to innovation too.
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FRONT-LINE IDEAS AND INNOVATION
• Innovations often need front-line ideas to work
• Front-line ideas create capabilities that enable innovations
• Front-line ideas can transform routine innovations into major breakthroughs
• Front-line ideas can open up new opportunities for innovation
© Alan G. Robinson, 2015
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SOME THINGS TO KNOW • What high-performing idea processes look like
• How to lead an idea-driven team or organization
• How to hold everyone accountable for ideas
• How to focus people on your organization’s strategic goals
• How to realign your organization for ideas
• How to help your people come up with more and better ideas
