The Idea-Driven Organization: Unlocking the Power in Bottom-Up Ideas

by Alan G. Robinson, Dean M. Schroeder

Companies say that they want to be innovative, high-performing, and rewarding places to work. Yet the reality is often quite different. Robinson and Schroeder make a bold claim that the quality of a company's output is directly related to a business measure that few companies track or understand: the ideas of employees. Ironically, the authors show that most managers and organizations are better at suppressing ideas than encouraging them. Many well-managed companies would pride themselves if they implemented one or two ideas per employee each year on the frontline. Yet high-performing idea-driven companies may implement 50 to 100 or more ideas per employee per year--and they keep count, too. In fact, Robinson and Schroeder show that idea-driven organizations are relatively rare, despite their competitive advantages.

The fundamental block to high-quality idea systems is leadership. Ideas are entirely voluntary, and employees won't generate or support them if they're misled. More than this, employees can't implement ideas if they need to seek approval at upper levels for simple improvements they understand better than their bosses. In organizations where ideas are brought to the core of strategy, systems, and management, the effect is electric. Employees are more engaged, productive, and creative. Businesses become more innovative and resilient with only minimal management inputs. The authors predict that idea-driven organizations will become the rule rather than exception. This book offers the complete guide to designing and leading this organization of the future.

Genres: Business, Leadership, Management, Nonfiction, Audiobook, Entrepreneurship

216 pages, Hardcover

First published January 1, 2014

About the author

Dr. Alan G. Robinson specializes in lean production, managing continuous improvement, creativity, ideas and innovation, and is the co-author of six books, which have been translated into more than twenty languages. His new book, The Idea-Driven Organization (co-authored with Dean Schroeder) is scheduled to be released on March 31, 2014.

According to the Society of Manufacturing Engineers (SME), Modern Approaches to Manufacturing Improvement -- his 1991 book with Shigeo Shingo, one of the developers of the Toyota Production System -- "remains a must-read for anyone interested in lean production".

Corporate Creativity (co-authored with Sam Stern) was named "Book of the Year" by the Academy of Human Resource Management, was a finalist in the Financial Times/Booz Allen & Hamilton Global Best Business Book Awards, and has been translated into thirteen foreign languages.

His 2002 book Vos Idées Changent Tout (co-authored with Isaac Getz) has been translated into six languages. In his preface to the German edition of this book, Heinrich von Pierer, President and CEO of Siemens AG, called this "an important book on a topic that is fundamental to every business".

Robinson's book Ideas Are Free (co-authored with Dean Schroeder) was based on a global study of more than 150 organizations in 17 countries. It describes how the best companies go about getting large numbers of ideas from their front-line employees, and the competitive advantages they gain from this. The book was named Reader's Choice by Fast Company magazine and one of the 30 best business books of 2004 by Soundview Executive Books, and was featured on ABC World News and CNN Headline News. A syndicated small business columnist for Scripps-Howard, Paul Tulenko, wrote about Ideas Are Free, "I rate this book 5 1/2 stars, a first in this category. It's that powerful. (Only the Bible and the Constitution receive 6 stars.)".

Robinson has advised more than 200 companies in fifteen countries on how to improve their performance. Some of his more well-known recent clients include: the Federal Reserve Bank, Lucent Technologies, Interbrew, General Electric, IKEA, Mass Mutual, UBS, Alcan, Volkswagen, Standard and Poors, The Washington Post, Danaher, Wyeth, Medtronics, Blue Shield of California, Toyota, Northeast Utilities, Millitech, Bemis, Pyosa (the Mexican chemical company), Fanuc (the Japanese robotics company), Schneider Electric, the Japan Industrial Training Association, Brookhaven National Laboratory, Coor Service Management, Lafayette 148 and the Applied Physics Laboratory.

He has served on the Board of Examiners of the United States' Malcolm Baldrige National Quality Award and on the Board of Examiners for the Shingo Prizes for Excellence in Manufacturing.

Dr. Robinson is on the faculty of the Isenberg School of Management at the University of Massachusetts. He received his Ph.D. in applied mathematics from the Whiting School of Engineering at Johns Hopkins University, and a B.A./M.A. in mathematics from the University of Cambridge.

He has also taught at St. Petersburg Technical University in Russia, the Athens Laboratory of Business Administration in Greece (affiliated with INSEAD), the Jagiellonian University in Poland, the University of Porto in Portugal, the Hanoi Business School, and Tianjin University in China.

Reviews

[Jay French · Rating 4 out of 5]

It's nice to read a business book that says it is one thing and doesn't try to be more than that. This book is about employee suggestions - the ideas that power the organizations in the book. The mix is good. Start off with descriptions of how to handle suggestions within a company using formalized process. Include examples of the nuts and bolts of how it is done. Use a real world example to flesh out the concept. This is repeated a handful of times to cover the ins and outs of employee suggestions. I appreciated the way the book was put together, and I really enjoyed the examples, especially the firefighting equipment company example that extended idea gathering to grab customer ideas. This did not cover the use of technology to collect and manage ideas beyond mentioning that some use spreadsheets. While I am sure there are many software packages that can handle this process, I agree with the author's leaving this out - software changes often enough that the book would soon appear dated based on technology recommendations. Without the technology discussions, this is a more timeless tome, valuable in describing the process.

[John Smith · Rating 5 out of 5]

There is nothing new in this book … the authors talk about the same things that many of us have been talking about for years and even decades … Here's my "nutshell" synopsis of what Robison and Schroeder have to say:

Many employees at the lower levels know much more about how parts of the business works than their managers .. and the further up the food chain, the more true this is … Many managers do not use or even ask for the wisdom of their employees …

Many little ideas implemented can add up to huge savings and awesome improvements in business operations … and individually take less effort and resources than “flavor of the month” showy, but temporary efforts …

Soliciting good ideas is not an event, but a cultural shift in the organization that requires careful planning and constant nurturing … it’s a lifestyle, not an initiative.

If you do not implement employee ideas, employees will learn not to share their ideas with you, no matter how good they are …

Our own hubris as leaders and managers is the problem and we have to learn to be humble …

It’s all about trust … leaders trusting employees and employees trusting leaders, which is not always easy or quick …

I have heard this all before in several different places at many different times. These are ideas we have discussed and reflected on in professional gatherings and informal sessions over a beer.

So why did I rate it so high and why should you bother reading this book? What makes this leadership book so darned different from all the others?

One simple reason …

Alan Robinson and Dean Schroeder are not just commenting on what we all should be doing. They have been and are doing it … and their book is a brand-new and valuable roadmap …

The Idea-Driven Organization does not just exhort us once again to do the right thing … it provides detailed and useful examples of how organizations around the world are already doing it, along with an adaptable and results-oriented framework to do it in your organization.

Let me just say that within one day of starting to read this book, I was quoting it to the leader of an organization in which we are engaged in a profound reorganization of the structure, our mission, and our culture … and I was extremely grateful to have it at hand on the table during the discussion.

If you really want to jump-start your empowerment with a solid business-based model, here you go … I promise you will not regret it, unless you are so anchored in top-down leadership that you cannot let go. I am loving this solid and valuable collection of results-based leadership thinking in the Heartland ….

ABOUT THE AUTHORS

Alan G. Robinson and Dean M. Schroeder are award-winning authors, consultants, and educators. They are the co-authors of the bestseller Ideas Are Free: How the Idea Revolution is Liberating People and Transforming Organizations. Between them, they have advised hundreds of organizations in more than twenty-five countries around the world on how to improve their creativity, innovativeness and overall performance. Their first book, Ideas Are Free, was voted the Reader’s Choice by Fast Company magazine and selected as one of the 30 best business books of the year by Soundview Executive Books. On March 31, 2014, Robinson and Schroeder will release their second book together, The Idea-Driven Organization (available on Amazon). Follow them on Twitter – @alangrobinson and @deanmschroeder and visit their website – idea-driven.com.

Usual Disclaimer: I received a preview copy of this book ... and I am very happy that is so. If I did not believe what I say above, you would never see this post or anything else about this book with my name attached.

[Becky Robinson · Rating 5 out of 5]

Idea-Driven Organization includes practical, helpful information about how to harness the best ideas from the front-lines of your organization. The authors have done extensive research and include many stories from organizations that have successfully integrated their approach.

This is a worthwhile read for leaders, teams, and anyone who wants to identify and implement more great ideas within their organization.

[Luís Felipe · Rating 5 out of 5]

Ótimos livro com muitos exemplos de casos práticos de empresas com programas de ideias de alto desempenho.

[Mick · Rating 3 out of 5]

Better than I expected. Worth a read if your are interested in enabling frontline staff to contribute ideas for improvement in your organisation.

[Ronald J. · Rating 2 out of 5]

The concept of front-line employees contributing ideas to improve the performance of an organization seems like common sense. Unfortunately, common sense isn’t common practice. It seems too many organizations are still stuck in the “one best way” mentality of Frederick Taylor, wherein managers have all the brains and employees are just hired hands. The authors claim that 80 percent of an organization’s potential improvement lies in front-line ideas. How many companies actively, and continuously, tap into that knowledge? Not many. Why not, lack of trust and it runs counter to traditional management practice (which is why traditional management methods suck; see the work of Gary Hamel on this topic). The book has plenty of case studies, and I especially liked the one of comparing Six-Sigma and employee ideas for improvements at Coca-Cola (management-driven vs. frontline driven). Frontline driven delivers much better results. The authors even cite Friedrich Hayek’s concept of knowledge of the particular circumstances of time and place, not something you read in too many business books, excepts the ones by David Koch. There’s also a good discussion about why we shouldn’t blindly trust “the numbers,” and there are many good books on this topic as well. There’s a nod, though not by name, to H. Thomas Johnson’s Management by Means vs. Management by Results. Only changing the process can improve the result, not managing by looking at results.

Ideas are investments into the future, and require time, money, and assistance from support functions, according to the authors. At least 4-7% of frontline employees’ time should be committed to testing ideas. Providing “rewards” for ideas defies intrinsic motivation for why people contribute ideas. I also love that they told the story of CEO Bruce Woolpert of Graniterock, and his idea of “short-pay.” That any customer could simply pay less than the invoice amount if they weren’t satisfied, and how this forced the company to improve on the customer experience across the board. In the first year, this cost the company 2.3% of sales, while today, it cost under 0.2 percent. The list of problems it uncovered is enlightening, and probably many of them wouldn’t have been if not for this policy. And even if they all were uncovered, there wouldn’t have been as much incentive to fix them without short-pay. I believe the authors are wrong when they cite that USA healthcare ranks 37th, below Costa Rica and Colombia. Does that really even pass the smell test in their world? Do they think the World Health Organization understands what they are ranking. Are people flocking to Costa Rica for medical care? But that’s not why I gave this book only 2 stars. I did like it, and would recommend for anyone interested in seriously starting a frontline suggestion box. But it’s a typical business book: redundant, sort of dull, lacking in theory (save for Hayek and a couple of other examples). Just reminded me why I’ve nearly stopped reading business books.


Notable

Gemba is Japanese for the actual place where the real work is done

Kaizen teian, Japanese for improvement suggestion

Gabriel D. Tarde wrote The Laws of Imitation in 1903, which is the predecessor to Everett M. Rogers’ Diffusion of Innovations book from 1962.

[Sara (onourshelves) · Rating 4 out of 5]

3.5

I think this was a solid business book in that I think it actually made a good point and backed up those points, though I don't think it was life changing by any means. The main point of this book is that frontline workers tend to have better ideas than the C-suite of how to improve production/ save resources in production. The supplemental points were essentially that there needs to be some sort of idea system put in place in organizations to more effectively utilize ideas from the frontline workers, and it is important that different departments work together to actually implement the ideas. It was fine, but I think you could read/listen to the introduction and still get the same information out of it.

[Jeffrey Waack · Rating 5 out of 5]

Creating the case for change

The book takes you from no system in place, creates the case for change backed by many examples, and provides a high level roadmap. Each chapter also includes a summary of key take-a-ways which help the reader reflect on the chapter.

The book also uncovers some areas that may be blind spots, for example, the importance of having the right people in place, and organizational alignment of other key systems.

I recommend this book for all senior leaders looking to transform their organization into an idea-driven organization.

[Alexandra · Rating 4 out of 5]

I really enjoyed that this focused on the practicalities that are holding back innovation - even those blockages that seem like good sense ideas.

Change theory approaches: Rational/empirical; Normative/ re-educative, Power/coercive

"A facilitators also serving as a scribe is distracted from the primary role of guiding the team as it addresses problems and develops ideas."

Must keep exposing to new perspectives (idea activators, idea mining, increase org's problem sensitivity)

[Kevin · Rating 5 out of 5]

A lot of the content is based on anecdotes and the results seen in a few select companies, with much of the suggestions being pretty generalized and not overly prescriptive. It gave me quite a few insights, though, and I am considering getting the book prior to this one, Ideas Are Free. I would definitely recommend this to others.

[Joshua James · Rating 4 out of 5]

Alan, your book is awesome!

I love the real life stories and examples.
...I suppose common sense is not all that common...

;-)

Man, if all companies would implement your suggestions the world would certainly be a much better place.

- Joshua

[Stephanie · Rating 3 out of 5]

Gave me lots of ideas! 3.5 stars. I "read" it on audio book. One downside for me was the robotic voice of the narrator.

[Richard · Rating 1 out of 5]

Blinkist Summary

[Nick Dutton · Rating 4 out of 5]

This does a great job of explaining why companies should do a better job of listening to front-line employees instead of disregarding them.

[Gregg R. · Rating 5 out of 5]

I learned the Why and How of building an idea-driven organization. Since reading, we have implemented some of the concepts into our company.

[Heather Carreiro · Rating 5 out of 5]

Practical and insightful. Looking forward to piloting an idea-management system.

[Skjam! · Rating 4 out of 5]

Disclaimer: I received a copy of this book through the Goodreads giveaway program on the premise that I would review it.

This is a follow-up to the authors’ 2004 book Ideas Are Free, in which they made a case that innovation can be driven by ideas presented by front-line employees, rather than imposed from above by management, or restricted to a particular department. Since then, they’ve consulted on various organizations’ new idea processes and have more insights, as well as some updated information.

Many of us are familiar with the old suggestion box method of getting ideas from employees–and how seldom it seems to make any difference. While reading this book, I happened to chat with a fellow who had put suggestions in his company’s box for twenty years, often getting cash prizes for the best idea that month. A grand total of zero of his ideas were ever acted on.

The authors touch on many of the obstacles to making an organization idea-driven, from leadership that’s out of touch with the common workers, through managers who won’t work with other departments, to demoralized employees who’ve been told for years that their ideas are “too expensive” or “just whining.” In many cases, putting an idea process in place may require some major rethinking of management policy.

They also give many guidelines for a successful reorganization of the idea process. One of the most important is to have a pilot program that allows the organization to see where any roadbumps are before trying to impose the new process on the entire organization at once. The book also stresses the importance of getting everyone on board, starting from the leadership team on down.

There are copious real-world examples cited throughout; the unsuccessful ones have the company’s name withheld to avoid embarrassing them. There’s a short end notes section and an index. The book is designed to be used as a textbook or supplemental reading for business school classes, with a helpful summary of the main points at the end of each chapter.

I am taking a business management degree, so found this book interesting and informative. It’s likely to be less interesting to those without an interest in organizational structure or business management. Perhaps you might consider it as a gift to a CEO you know?

[Wyatt Johnson · Rating 4 out of 5]

I received this book for free through Goodreads First Reads.

As someone who was put in a position to implement ways to improve employee engagement at the company where I work, I created an online idea submission system. It did not work well. That list became a black hole that haunted me, as idea after idea came in. My team was able to do a couple things off that list, but it quickly became obvious that this was not a good way to do it.

The Idea-Driven Organization is a very well written book on ways to successfully implement idea systems. The chapters are filled with real life examples of multiple companies' successful idea systems. Not surprisingly, these companies have high engagement and are run efficiently.

There are also examples of bad ways to implement these systems, and I swear one of those was exactly what I tried to do. Reading about why they fail made so much sense, it made me disappointed in myself that I hadn't seen that ahead of time.

There are "Key Points" at the end of each chapter that summarize the chapter in an efficient way that makes the book very usable as a constant reminder.

The overarching key point is that front line workers must be in charge of coming up with ideas, and must be empowered to make their ideas happen.

I enjoyed the book, and recommend it to all levels of people, from those front line workers to upper management. I plan to share this book within my own company!

[Bob Wallner · Rating 4 out of 5]

I really got a lot out of "The Idea-Driven Organization". I had listened to "Ideas are Free" over a year ago. I really should have re-listened because this is a good squeal..it builds off its predecessor, but makes you think back to the previous book.

The Idea-Driven Org is what an entire organization can be like when it focuses on the ideas of front level employees. More than that, the authors give you a road-map of how to get there. They explain how this can nicely tie into any continuous improvement effort (lean/6 sigma/etc) and help to enhance the entire system.

The one downside to this book is that I listened to it in Audible. The author's kept referencing the "companion pdf" which I never found online. I would suggest that the authors make this readily available on their website as the pdf would be minimally useful to anyone not listening. Not having this did detract from the over all experience.

One final thing is that I really liked the fact that Mr. Robinson works local to where I live. One of his examples of successful idea programs was STCC a local community college in my area. This probably didn't make an impact on others, but I have read/listened to a lot of professional books, and seldom is my local area represented, usually Boston or Hartford are about as close as they get.

[Daniel Forbes · Rating 5 out of 5]

OK, I wasn't sure if I'd like this book or not, but WOW! The authors hit a homerun and champion the "idea" of how companies can grow from good to great by becoming idea-driven organizations.

They prove their point with case studies and then step by step show you how it's done.

Being idea-driven is more than setting up a suggestion box. In fact, you'll learn why that's exactly the wrong approach.

[LeeAnn · Rating 3 out of 5]

There were some interesting nuggets of worth in this book, but seemed to echo advise I've heard here and there before. Perhaps it could be good reading for a study group -- probably a good idea to share with your idea-driven boss, maybe? I'll keep the book around to glance into occasionally; it's one of those kinds of books. Not ground-breaking, certainly, but worth reading. Thanks to goodreads for sharing this with me via giveaway.

[Daniel Rodrigues · Rating 4 out of 5]

Inovação por toda a empresa

O mais importante deste livro é o método de Implementar um sistema de inovação com a participação de todos os colaboradores da empresa, especialmente aqueles de cargos mais baixos, mas que, geralmente, possuem contato direto com o cliente. Em alguns exemplos se torna um pouco cansativo, mas no geral, vale a pena a leitura. Interessante notar que dentre as empresas analisadas como exemplo no livro está a brasileira Brasilata.

[Alex Devero · Rating 4 out of 5]

Promote innovation and creativity at every level of your organization to improve customer satisfaction, boost employee productivity and position your company for phenomenal long-term success.

[Kelly Niehaus · Rating 5 out of 5]

Great book so I actually bought it for future reference

[Michael Huang]

A number of suggestions and examples from successful organizations that allow people to come up with new ideas.

* A bar listens to employees and installed chutes so that they can dispose off bottles more easily.

* A truck factory stops pipeline for 26 minutes every week just so that people can discuss ideas and implement improvements. As a result their productivity improves 12-15% every year.

* Have sessions where people can discuss ideas and mine them for hidden ideas...

[GM]

The key message in this book:
Promote innovation and creativity at every level of your organization to improve customer satisfaction, boost employee productivity and position your company for phenomenal long-term success.