Your organization’s leadership team no doubt contains a wealth of experience, knowledge, and bright ideas. Leadership might not have all the answers, and your fellow leaders could be unaware of one or more growing problems.
The good news is your employees may very well hold the operational improvement solutions you’re looking for or don’t even realize you need. However, you might have to offer an incentive to get them to speak up.
Gaining insights
Here’s a fictitious example that illustrates the kinds of insights you could gain. Let’s say, in March, Employer X lost two major accounts. The sales manager blamed it on poor quality control. The production manager blamed it on an executive decision to switch to a cheaper supplier. Meanwhile, the marketing manager thought the company’s prices were too high compared with what competitors were charging.
Tired of the blame game, ownership decided to survey frontline workers and customer service reps about ways to improve customer retention. Sure enough, these employees had some practical suggestions based on their daily observations and interactions.
After carefully choosing, crafting, and implementing several of the ideas, things got better. First, Employer X was able to eliminate multiple bottlenecks in production, streamlining its workflow without compromising quality control.
Also, after one employee mentioned having a good rapport with a vendor while at a previous job, the business contacted the supplier and ended up negotiating a long-term contract. The new deal involved receiving raw materials on a just-in-time basis, which lowered inventory costs and improved Employer X’s gross margin.
Perhaps most important, leadership received a fraud tip. A salesperson noted that a disgruntled former colleague had more than likely stolen customer lists on the way out and taken them to an unethical competitor. As a result, ownership contacted an attorney about investigating the breach and implemented stronger controls to better protect valuable proprietary data.
Offering cash incentives
How can you motivate your employees to speak up? Some employers have implemented cash reward programs to incentivize workers to come up with value-added suggestions. When putting together such an initiative, consider these guidelines:
Announce the winners at a companywide meeting or awards ceremony. In addition, publish the names of winners and descriptions of their suggestions on your internal website or via a widely distributed email. Doing so demonstrates that the program is authentic and important to your organization.
Broaden your perspective
Whether a high-ranking executive or newly hired entry-level worker, everyone wants to have a voice and be heard. By encouraging employees to contribute improvement solutions, you’ll broaden your leadership team’s perspective, empower workers, and better guard against unforeseen risks. Contact us for help assessing the cost-effectiveness of an operational improvement program.
If you have any questions about this content, or if you would like more information please contact Jeff Wilkie, Principal of the HoganTaylor Talent practice. More information is also available on the HoganTaylor Talent page of this website.
INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.