Ideas Are Free Achieving Organizational Excellence with Employee Ideas Dr. Dean M. Schroeder

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1 Ideas Are Free Achieving Organizational Excellence with Employee Ideas Dr. Dean M. Schroeder Ownership Thinking 2011 Annual Conference

2 The new normal: Uncertainty, ambiguity & the need for rapid change.

3 We can't solve problems by using the same kind of thinking we used when we created them. Albert Einstein

4 The Key to success today is flexibility, innovation and constant improvement Rapid Learning

5 Speed of Learning Improvement Normal Learning Rate 2% Time

6 Speed of Learning Improvement What if you could learn faster? Time

7 Speed of Learning Competitive Advantage Improvement What if you could learn faster? Time

8 So what is Organization Learning?

9 Organizational Learning is improvement in: People s knowledge (and their ability to use it) Company policies, procedures, & systems The technology and tools the company uses Organizational mindset the way things are viewed core assumptions & beliefs

10 How do we speed our natural learning rate?

11 In Idea-Driven companies 80% of learning comes from your front-line people

12 Organizational Learning at Coca-Cola Stockholm Black Belt 1.5 Million Green Belt Project 1 Million in Savings Idea System 8 Million in Savings

13 Examples Of Idea-Driven Organizations Scania Autoliv Clarion Stockholm 50 ideas/employee/year 15% improvement rate 65 ideas/employee/year 14% improvement rate 67 ideas/employee/year Near 100% occupancy Milliken Corporation 110 ideas/employee/year Boardroom 104 ideas/employee/year 7X average productivity

14 Key Lesson from The Ideas Are Free Study more than 150 companies visited in 17 different nations in a wide range of industries over 1000 interviews more for the new book

15 1) Set the foundation with standard work

16 2) To After Small Ideas!

17 Why do people offer their ideas?

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19 Why do people offer their ideas? 1. To make their job easier 2. To contribute to a winning team 3. For personal pride in achievement 4. For the recognition and respect

20 3) Avoid Percentage Rewards

21 4) Use a Good System You can t expect rapid learning to happen organically or simply with rhetoric.

22 Not a suggestion boxtype system!

23 Our favorites systems The Idea Meeting The Idea Board

24 The Clarion Hotel Stockholm: Ideas from the Bar October 2008 Idea Meeting Marco Reza Nadia Tess Nadia Tim Fredrik Nadia Marco Marin Nadia Tess Nadia - CC Marco Nadia Marin Nadia Nadia Get maintenance to drill 3 holes in the floor behind the bar and install pipes so bartenders can drop bottles directly into the recycling bins in basement When things are slow in the bar, mix drinks at the tables so the guests get a show Many customers ask if we serve afternoon tea. Currently, there is no hotel in the entire south of Stockholm that does. I suggest we start one. Have an organic cocktail. Customers often ask for them, and we don't offer one. Clarion conference and event sales staff often meet prospective customers in the bar. Give the bar staff information in advance about the prospects so they can be on alert and do something special Whenever the bar introduces a new cocktail, have a tasting for the restaurant staff, just as the restaurant always does when a new menu or menu item is introduced, so servers know what they are selling When the bar opens at 9:30 in the morning, many guests ask for vitamin shots (special blends of fruit juices). Let's put these on the menu. Have maintenance build some shelves in an unused area in the staff access corridor behind the bar for glasses. Currently, there is so little space for glasses in the bar, that they are stored upstairs in the kitchen, and it takes 30 minutes for one of the two bartenders to go and get glasses, which means lost sales. In the upstairs bar, we have to spend an hour bringing down all the alcohol from upstairs when we open and putting it away when we close. We wouldn't have to do this if locks were installed on the cabinets in the bar. On our receipts, when guests pay with Eurocard, it says "Euro". This confuses many guests, who think they have been charged in Euros instead of Kronor. Get accounting department to fix the way the receipts are printed. The bartending staff often act as concierges, telling people about the hotel, local shops, restaurants, and attractions, and giving directions. The hotel has a concierge video which it shows on its website. Offer this on TV in all hotel rooms. Currently we close at 10 p.m. on Sundays, and many guests complain about this. But because we have a red dot on our liquor license from a single violation many years ago, we must have four security guards in the bar to be open after 10 on Sundays, and this is too expensive. Apply to have red dot removed, and then we can stay open with only one security guard. The late night security guards are sometimes curt and rude to the customers (the security service is subcontracted. These guards should be required to take the same "Attitude at Clarion" training that all Clarion staff take. Increase the font size and make clearer that the coupons conferences give out are for discounts at the bar, not for free drinks.) Have the kitchen mark the ham pre-wrapped sandwiches that the bar sells. Bar staff currently have to cut them in half to tell the difference between them and the ham and cheese sandwiches. Put an extra beer tap in the bar, so we can sell more beer. Currently, there is only one, and it is a bottleneck. Have maintenance put some sandpaper safety strips on the handicapped ramp in the bar. Children currently use it as a slide, and the bar staff has to deal with minor scrapes and cuts on a daily basis. Give the bar staff information about how many guests are staying in the hotel, so they can stock and staff the bar appropriately.

25 Sample Idea Board

26 Pyromation Forte Wayne, IN

27 Autoliv

28 5) Focus Ideas Where They Matter Most Link front-line ideas to strategic objectives!

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30 What Makes Good Metrics?

31 What Makes Good Metrics? Clear Strategic Alignment Vertical and Horizontal Drive Bottom-line Performance Buy-in Leaders to Front-lines Meaningful to Front-line Actionable with Ideas Balanced Set 3 or 4

32 Chip Set Example 1. Sales per associate 2. Orders arrived on-time and correct 3. Inventory turn rate

33 6) Make Ideas a Regular Part of Everyone's Job

34 Hold People Accountable

35 7) Use Idea Activators Training sessions that point out a new perspectives or insights that will lead to more and better ideas.

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37 3-R Activator Training Reduce Reuse Recycle Results? No Waste to landfill since May 2004! Millions in annual savings!

38 8) Aligning the Company for Ideas C U L T U R E Environment Strategy Structure Budgets/Policies Procedures/Systems/Practices Skills /Supervision/Rewards Behavior L E A D E R S H I P

39 Dr. Dean M Schroeder deanmschroeder@gmail.com deanmschroeder.com (219)