Remember the reward style for “Wanted Dead or Alive” Why did it work? Simply because of the Money involved? But can you apply the same system of reward to supercharge your process improvement, won’t it look too desperate?
Here is an excerpt from Harvard Business Review 2007, $152,000 for Your Thoughts-by Gary Carini and Bill Townsend:
“Companies must also put serious rewards on the table. All too often, bonuses don’t inspire employees to shape and articulate their ideas. We estimate that in most companies, the ratio of employee reward to savings or increased revenue from innovation is about .001%, or $100 for that $10 million idea. Interminds, the consulting firm that one of us (Bill Townsend) founded, is a good example of a company hat puts its money where its mouth is. An employee who comes up with an idea to save money while promoting the company’s vision gets half of the first year’s savings. The policy was instrumental in drawing a great idea from a $38,000-a-year executive assistant. Her process improvement was to automate the laborious system of manually tracking 900 field representatives. She built the business case with an individual in the finance department. The company implemented her plan and saved $304,000 in the first year. She earned a $152,000 bonus.”