Top positive review
4.0 out of 5 starsand shareholders are not satisfied with anything less than growth
ByIan Mannon April 11, 2017
Conversations I have with business leaders rapidly move to one common problem: The current business environment is brutal, and shareholders are not satisfied with anything less than growth.
The knee-jerk answer is to grow the bottom line by cutting costs, which usually means cutting jobs and squeezing suppliers further. However, as Tom Peters famously pointed out in 1997, “You can’t shrink your way to greatness.” You could not then, and you cannot now.
Clearly, if your strategy is flawed, nothing will help until that is problem is resolved. However, your strategy is essentially sound, the ideas driven organization could well be the full answer to your problems, or at least a substantial part of it. Let me repeat that: The central idea of this book could well be the full answer to your problems, or at least a substantial part of it.
The authors, Robinson and Schroeder are consultants, and lecturers. Between them, they have advised hundreds of organizations in more than twenty -five countries on how to improve their innovativeness and performance.
Their solution involves the very people that bear much of the burden of the problem – frontline employees. These people see many problems and opportunities that their managers do not, but organizations have very successfully suppressed their ideas rather than promoting them.
If managers were able to implement twenty, fifty, or even a hundred ideas per person per year, everything would change. If this sounds fantastical, it is not. Organization that have implemented processes to garner frontline employee’s ideas and then implement the best ones have shown spectacular growth, even in difficult trading conditions.
Dave Brailsford, director of British Cycling and manager of cycling’s Team Sky, was asked how the team managed to win seven out of a possible ten gold medals at the 2012 Olympics. He explained that it was not one critical thing that did it, rather it was “the aggregation of marginal gains,” – doing many things, just a little bit better.
This is true for business as well.
Traditionally, organizations have been directed and driven from the top. To achieve today, in this difficult environment, they need to be directed from the top, but are driven by ideas from the bottom.
You probably have a “Suggestion Box” somewhere, and most probably, it has yielded little. Perhaps you have held an organization wide contest for brilliant ideas with a fabulous prize or two that, similarly, yielded little.
As the authors point out, these idea-gathering processes are deeply flawed and rarely yield more than an implementable idea or two. There are many reasons for this. Gathering “suggestions” is simply that, suggestions which “the adults” will review decide on. It is based on the presumption that someone in head office is better able to decide on what is best for customers he has never met that is the deliveryman.
Additionally, the deliveryman is most unlikely to offer a suggestion to his superiors, many of whom would not take advice gracefully from a corporate inferior. Of course, many of the ideas that come from the front-line in idea forums are simply a waste of time and effort.
To garner many quality ideas requires the implementation of a well thought through process that addresses this multifaceted challenge.
In organizations where management lacks the humility to realise that their superior education and elevated positions do not make them experts on everything, failure is guaranteed. This is why there is a training element necessary if the organization is to be driven by ideas from the vast majority of staff who are not in head offices.
Irrelevant ideas that cannot be implemented are a very quick way of burying this initiative. There needs to be unequivocal clarity regarding what is being sought: Customer retention; increased margin; and increased turnover. This will have to be translated into relevant goals for each participating department.
For our deliveryman, this translates into finding ways to make the customers you deliver to happier. It means finding ways to save costs in delivery such as not wasting fuel and organizing your routes better. It entails looking for products the companies you deliver to could be buying from us.
When ideas come in, they need to be dealt with rapidly. There are few ways to demotivate a staff member faster than not having suggestions acted on.
The value of this book lies in two areas. The first is the description of idea-systems from organizations ranging from hospitality to hospitals, from services to manufacturing, and even from government. The second is the prescription for implementing this process in your organization. This is not a “paint-by-numbers” prescription, rather the steps in the process you will need to customise to your company.
If you have any doubts about the efficacy of this approach consider the results in one of many examples in the book. The Clarion-Stockholm is a four-star hotel in the centre of Stockholm. Staff routinely averages more than fifty ideas per year each. They have been trained to look for problems, and for opportunities to improve. While Sweden was feeling the impact of the global recession, the authors reported that they could not get rooms at the Clarion. The hotel was fully booked for most of the next nine months.
Based on their extensive experience, Robinson and Schroeder estimate that “some 80 percent of an organization’s potential for improvement lies in front-line ideas.” Even if they are only half right, this book deserves your immediate attention.
Readability Light -+--- Serious
Insights High -+--- Low
Practical High +---- Low
Ian Mann of Gateways consults internationally on leadership and strategy and is the author of Strategy that Works