Many heads are better than one.

I came across this article on crowdsourcing, and how the old saying “two heads are better than one” is as true as ever. “The more heads, the better” is probably the modern day version of this. In the past, and innovation experts will agree, too many heads created too much useless information and idea clutter (aka – noise), so limiting brainstorming to a select few was the best way to conduct business.

Today, however, technology helps us filter that noise. Crowdsourcing tools like Eureka, and others on the market help remove it through its voting, scoring and gamification algorithms. Along with expert scoring, it’s easy to find the best ideas. The crowd does the heavy lifting, and the more of it, the better!

What’ better, is that these idea management systems are easy to setup and use, and most of them on the market offer a free version or a trial period. Eureka’s free version is a fully functional system limited to one challenge – enough to run a pilot and determine if the paid versions are worth investing in (my opinion – They Are!).

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The Best Engineers (Your innovation goldmine)

It is sometimes said that your best engineers are the workers running your production lines every day. Most of these engineers don’t have engineering degrees or for that matter college degrees, but they can probably solve some of the biggest problems facing your organization.

If not asked, the knowledge of these ‘engineers’ will be invisible and they will do their required work as directed, but at the very moment they are challenged, the ingenuity of these ‘engineers’ could surprise even Einstein.

Their ability to eliminate waste and make processes more effective, as well as think-up new product ideas and improvements, is mostly due to the amount of time they spend at their given tasks. They literally earn PhDs in those tasks and products, and thus have the ability to identify every possible improvement opportunity.

Unfortunately, many organizations fail to place the challenge squarely on their employees’ shoulders. Their fear of Employee Suggestion Programs, due to the well known and documented problems arising from poorly managed ones, is one of the main reasons they do not formally solicit employee input and thus shut out their greatest asset… their brain trust.

Employee Suggestion Programs don’t have to be difficult-to-manage resource hogs. In fact, today's web technology has given birth to a new breed of software designed for Innovation and Idea Management. The tools contained in these systems place ‘controls’ on the pitfalls and problems associated with the traditional employee suggestion program:

· Web-based suggestion forms which can be routed electronically and thus eliminate the manual transportation of paper based ideas.
· Ideas are stored in a central repository (database) thus making them accessible and searchable by the entire team.
· Live reporting functions make program status transparent to all the stake holders.
· Automated email follow-up of stake holders with open tasks.

Furthermore, these tools have made it possible to bring all members in the organization into the innovation loop – an area previously reserved to marketing, engineering, and management teams. The ability for all members to bring forth their ideas and collaborate with each other is a benefit that no organization wishing to remain competitive can afford to ignore.

Harnessing the knowledge of the ‘best engineers’ is key to making your organization’s current processes as efficient as possible and allowing it to continue inventing its future.

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Capture Lean Manufacturing ROI.

Recently I came across this article in Plastic News that struck me as odd, but offered an opportunity to communicate the importance of a solid idea management system in order to maximize the benefits of your continuous improvement process.

But first, I must add that I was a bit baffled by the inclusion of Six-Sigma in the whole ‘ROI’ question since true Six-Sigma projects always look to answer “How much will this save?”, or “How much will this reduce our scrap costs by?” … clearly ROI centric questions.

Lean, on the other hand, is a different story. A good lean program will yield thousands of small ideas. In fact, one of the main reasons ideas are seldom documented beyond the Kaizen Card, is that a program administrator would be immediately overwhelmed by having to input each idea into a database or spreadsheet. A further reason is that fact that these databases are accessible by few (usually management), and thus the true benefit of documenting the data beyond having a catalog of ideas for reporting purposes at times does not justify the effort.

Enter idea management software: Web based idea management software solves this problem. Instead of one person documenting the ideas, every member of the organization is responsible for recording their ideas. The system catalogs and helps administrators to manage the workflow and even assign ‘rewards’. But the greatest benefit is the fact that these ideas are searchable by everyone. Users can look to see if solutions have been found for similar problems, and that in itself helps propagate solutions across the organization (Yokoten).

Once ideas reside in the database, it is easy to calculate the ROI from actual cost figures or even reductions in processing time (Yes, although process time savings are not immediately visible, they become tangible once lines are re-balanced.)

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Still having doubts about the Toyota Production System’s benefits?

Several years ago Toyota went through one of the worst stages of its history. Just as the world was in the midst of a financial crisis, we all started to hear about runaway Toyotas and brake failures. TPS and Lean Manufacturing came under the microscope like never before, and many, specially the media, opportunists, the U.S. government (trying everything they could to hurt the competition to prop up U.S. automakers), and many started to doubt the benefits of a system previously lauded for delivering exceptional quality.

It was only after several years, millions of vehicle recalls, a humbling apology by Akio Toyoda (in front of a hostile US Congress), and a joint NHTSA / NASA investigation into the issue to really show that TPS was doing what it had to do! After the investigations concluded, the data showed that the majority of the accidents occurred due to drivers not pressing the brakes.

Of course, while everyone blamed bad accelerators, and even electronics, Toyota did what it did best… it used real world data to perform its root cause analysis. In late 2009, and before the runaway problem really exploded, Toyota was already recalling and fixing the mat interference issue. It realized the danger of the situation and took action. 

(There is no justifying any death or injuries due to poor designs and/or quality… and the mat issue did contribute to these. However, the fact that the Media and Government went to such great extents to damage Toyota’s image – in order to prop up GM and Chrysler – makes me wonder if they perpetuated the problem. If anything, that witch hunt probably forced Toyota to commit resources to a wild goose chase and likely lose focus on the real issue… the floor mats.) 

This year’s JD Power ratings were released and Toyota claimed the top spot in 8 of the segments. It is also interesting to note that these ratings concern 2009 models, the bulk of which went under the microscope due to the ‘runaway’ issue. This not only confirms Toyota’s commitment to quality, but that in the wake of the ‘fiasco’, they continue to do what they do best… learn and continuously improve.

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Yokoten – Finding the holy grail of the Continuous Improvement process.

Yokoten , (loosely defined) is the reapplication of a solution to similar problems in different areas. This essentially boils down to a ‘teaching’ process, and how solutions are ‘taught’ across an organization so that team members can apply and improve upon the acquired knowledge. To me, the holy grail of the continuous improvement process is simply this – the ability to quickly apply learned solutions to other areas (vertically and horizontally in an organization).

But how do organizations ensure that learned solutions are effectively communicated? This is usually answered by the different teaching and communication avenues found in effective lean organizations -such as Toyota - that attempt to maximize the exposure of a solution to their team members. In a typical CI process, Kaizen are communicated via the Kaizen card. Normally placed at the location where change is occurring as well as common bulletin boards across the organization, this allows team members to see the before and after conditions and learn how a particular problem was resolved. The theory here is that team members can carry that knowledge to their work areas and implement similar or improved solutions.

As in most organizations, this process is paper-based, and although ideas receive great visibility (if the CI program is well designed), once they are removed from the bulletin boards, the learning stops, and unless there is a common repository accessible to all, the solutions are no longer available to those who were never made aware of it (and yes…, there are still those who just go to work and don’t read the bulletin boards!)

This fact leads to what I call the “Re-inventing the wheel” syndrome that is usually observed in lean organizations. Although everyone agrees that someone who is solving a problem (even though the solution exists) is actually learning, it is evident that this effort in “reinventing the wheel” can be viewed as non-value-added. The work is being re-done, and therefore time and ‘testing’ resources are being invested in the effort.

So the question this brings up is how to maximize the benefits of a solution across an entire organization? To me the answer is simple – adopt the use of tools and methods that not only enhance the communication of solutions across an organization, but also do so perpetually. In other words, make solutions readily available to team members looking to solve problems!

Eureka, our Idea Management Software addresses that question and is designed to help organizations maximize yokoten. Our system allows users to not only document their Kaizen, but more importantly allows them to search through ALL the kaizen that have been documented to find potential solutions to their particular problems.

Of course there are a myriad of other benefits of using Idea Management software - such as greater process transparency, accounting of benefits, and greater collaboration amongst users who may not necessarily be in the same location – but we’ll leave those for another discussion.
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Make sure Continuous Improvement and Innovation are never ending cycles.

No company should be doing business if they don’t ensure Continuous Improvement and Innovation initiatives are never ending cycles. In short – never ending cycle – means that a company needs to do what it can to out-do itself!

A recent article in Bloomberg highlights the predicament BlackBerry got into by not doing this. They disrupted the market with a product called the Blackberry messaging device, and were in the lead of the smartphone market until Apple disrupted them.

RIM fell into complacency thinking that no-one would be able to compete with the appeal their products had for corporate clients. After all the security features, I will admit, were above and beyond anything on the market. However, what this meant was that RIM would continue to build ‘clunky’ hardware and less than friendly software believing corporate clients would continue to flock to their products.

• (Note: I purchased a Blackberry Storm 2 over two years ago when RIM got into the touchscreen smartphone market thinking they would compete effectively with Apple. I was dead WRONG! Not only was the hardware subpar, it couldn’t be upgraded to the newer OS6 and OS7. In fact, RIM stopped updating their OS5 over a year ago (at least I never saw a newer version) which still carried Storm related bugs. To make things worse, it wasn’t until last fall that BB released a replacement for the Storm on Verizon’s network. Believe it or not they kept selling the device at full price with a very outdated OS! In my opinion, RIM did not care about the user experience!)

In the meantime Apple (and then Google) got into the market delivering devices with extremely user-friendly features. The none-corporate users started buying these by the tons and the application eco-system started to bloom.  The underlying theme with these two was the fact that they catered to the user experience and needs while RIM di not cater to users but rather corporate IT departments. The majority of BB users had the phones ‘forced’ on them because of their jobs.

The very eco-systems that Apple and Google created have now delivered security applications that can start competing with RIM.  In fact, RIM, late last year, decided to givein and communicated its intent to provide software to integrate iPhone andAndroid users into corporate Blackberry networks. This further reduced the Blackberry’s market relevance, but it was a necessary evil knowing that if they didn’t do this, their other business line – Blackberry Enterprise Servers –would eventually succumb to the competing services from Apple and Google.

This move is just another indication that Blackberry is in ‘reactive’ mode and still failing to engage the never-ending Continuous Improvement and Innovation cycles.

My prediction with this recent move is that RIM will either a) Exit the hardware market and become strictly a service provider, or b) give up its Blackberry OS and adopt the Android or Windows Phone OS (I hardly believe Apple will ever put their OS on another device.)  Either way, for RIM to become relevant again they will need to become disruptive again, but it won’t happen in the smartphone market!  (Perhaps they should consider space exploration!)

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Efficient marketing with social networks – Keeping the “sister’s-friend’s-cousin” out of the conversation.

We are all familiar with Facebook and Twitter and the ‘general’ social networking sites available to all. For businesses, organizations, and even political movements, these tools provide a method for creating brand awareness and engaging people with similar interests. However, generic sites such as Facebook and Twitter do not provide the tools necessary to focus the audience. There are too many distractions (games, photos, videos, other posts, etc) and your followers might not share the same beliefs or passion for your topic. Essentially these sites provide a shotgun approach to engaging your audience. What I mean by ‘shotgun’ is that for every topic you post, relevant to your business and organization, only a small subset of those people networked through your Facebook page or Twitter account will likely be engaged by the post… and not all will likely be ‘positive’ contributors.

Another drawback is that sometimes organizations may want to explore topics that are suited for specific people and thus are too private to discuss on public sites. Not having the ability to control who is engaged in the conversation takes away from the flexibility needed to discuss truly relevant topics. Engaging ‘irrelevant’ people into the discussion only detracts from your mission and adds noise which needs to be filtered out.

There is an alternative, nevertheless, to public social networking. Private social networks are quickly becoming the tool of preference for many organizations. The most common varieties of these are idea management systems. Depending on their setup, they allow users who share a passion for the organization to post and discuss topics regarding improvements, requirements, and innovation… all while keeping their “sister’s-friend’s-cousin” from engaging the conversation.

Dell (IdeaStorm), Adobe (Acrobat Ideas), and many organizations are using idea management software to further enhance their marketing efforts through crowdsourcing. They use them to gauge and harness their customers ideas and sentiments in order to provide better products and services. The benefit of this method is that only people interested in the organization’s products, services, or mission will engage the conversation thus eliminating the ‘noise’ factor created by out-of-topic comments by the “sister’s-friend’s-cousin”.

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What the American Airlines IdeAAs program taught us.

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!

 

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Innovation Management and KPIs

One of the biggest questions faced by innovation managers is how to measure success. Finding the right combination of KPIs which deliver relevant and actionable information can be difficult for the unseasoned Innovation Manager. Most organizations require a different set of data since their strategies will differ; however there are a few ‘core’ KPI that no innovation strategy must be without.

Our philosophy at INCENT is not to focus on the end result as much as the execution phase of the innovation process. Ensuring execution of your strategy will likely guarantee the end results. A good starting point in defining the KPI for your innovation strategy, (and more so if using idea management software across a vast group of users) is to measure the following items:

1) Participation
     a. The more people are engaged the likelier the chance of finding the 'diamond in the rough'.
     b. Recurring participation will indicate the team continues to be motivated to participate.
2) Idea Quality:
     a. Is your team proposing very random ideas or are they focusing on specific challenges?
     b. Are most ideas discarded? Or are they turning into actionable items?
3) Aging:
     a. If it takes too long to process an idea participants may lose interest.

If you can stay on top of these then they will ensure the other KPIs (financial gains, patents achieved, or any other end result KPI that you want to measure) show consistent progress.

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FACEBOOK with substance.

From USA Today 2/16/2011.

Facebook has managed to unite people across the world and open up communication amongst humanity to a level not imaginable just a few years back. The power of Social media and social networking has unleashed a level of collective collaboration powerful enough to topple governments. As impressive as this is, the majority of Facebook’s community has remained largely engaged in chatting with friends and relying on its well tuned algorithms to connect with lost ones.

For organizations looking to harness that level of collaborative power in order to drive continuous improvement and innovation, the new breed of idea management solutions feature Facebook-like interactivity while offering secure settings and tools designed to harness their team’s collective intelligence. Teams can collaborate across desks, walls, borders and even the general public while game-mechanics help drive motivation to engage in the conversation.

Front-end tools and back-end algorithms help link talent to ideas to ensure the best ones are identified, developed and ultimately driven to implementation. Idea management systems are like Facebook… with substance.

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