A classic example of failing at yokoten (transversalization) that I like to share frequently is American Airlines suggestion system. As much as consultants and subject-matter-experts like to share stories of success about AAs IdeAAs program, the truth is that it was not as rosy as they make it appear. Not only was the program not delivering the type of results known possible from good employee suggestion programs where according to page 105-106 in Robert B. Tucker's book (Driving Growth Through Innovation: How Leading Firms Are Transforming Their Futures) AA saved $36M/yr with revenues likely exceeding $20B, but it was likely due to low employee participation, too
many roadblocks, and poor knowledge sharing - Yokoten.
Here’s my example based on two suggestions engraved in “suggestion
Systems Lore”… In 1987 a flight attendant proposed removing the Olives from all
salads after realizing most passengers were not eating them. This saved,
according to popular culture about $80,000 (and the term –The $80,000 Olive –
was born).
In 1991, another flight attendant proposed reducing the
serving size of Caviar in first class from 200g to 100g after noticing that
large amounts of it were being thrown away. This idea saved nearly $500,000/yr
according to popular culture.
But here’s the lesson, yes it was great that employees
identified these savings, but one has to wonder why it took 4 years before an
almost identical idea was implemented.
In fact, while most experts like to point to and credit the
IdeAAs program for its success in discovering a $500,000/year savings, I like
to point out that the failure of the IdeAAs program to enable Yokoten and
engage everyone while making knowledge readily available cost them $2,000,000!