Ideas Are Free

SELECTED PRAISE FOR IDEAS ARE FREE “In [this] groundbreaking book…. Robinson and Schroeder have a message for today’s overburdened, stressed-out managers and supervisors: the solution to your problems is closer than you realize—it lies within the people who work for you.” —The American Management Association (AMA) “One of the thirty best business books of the year.” —Soundview Executive Book Summaries “Ideas Are Free is the definitive book on getting—and applying— business-transforming ideas from frontline employees.” —Society for Human Resource Management (SHRM) “Ideas Are Free shows how a good idea has no bounds and how pursuing such ideas is the essence of everyone’s job today. Robinson and Schroeder outline a workable plan for tapping into this unlimited resource and harnessing its potential.” —Bob Nelson, PhD, bestselling author of 1001 Ways to Reward Employees and 1001 Ways to Take Initiative at Work “Ideas Are Free is a must-read for every manager. Robinson and Schroeder provide an invaluable blueprint of how to unlock one of the great assets that is frequently untapped in business—employee ideas.” —Richard A. Goldstein, Chairman and CEO, International Flavors and Fragrances, Inc. “This is the quintessential book on how to foster and leverage free ideas from employees. It’s a must-read for any project manager responsible for delivering programs designed to increase sales, increase productivity, increase customer satisfaction, and increase company employee morale. Read it today. Use it tomorrow.” —Brand Autopsy “Ideas Are Free is a refreshingly insightful book that managers at all levels should read. It spells out how to take advantage of your most valuable asset—the combined intellectual capital of all of your people.” —Donald V. Fites, Former Chairman and CEO, Caterpillar, Inc. “Ideas Are Free sets out a roadmap for totally integrating ideas and idea management into the way companies are structured and operate. Robinson and Schroeder show how to take advantage of this virtually free, perpetually renewing font of innovation.” —Society of Manufacturing Engineers “Wherever you sit in the hierarchy, read Ideas Are Free to seize powerful ideas about potential gains for your organization’s progress and prosperity.” —Lead Well Institute “Ideas Are Free does a terrific job of capturing the extraordinary benefits of effective ‘idea generation processes’ that unleash the total people power of any organization that strives for excellence.” —Tom Malone, President and COO, Milliken & Company (Winner of both the Malcolm Baldrige National Quality Award and the European Quality Award) “You have an opportunity to make major improvements in your business by following the basic guidelines set forth in this book. I rate this book 51⁄2 stars, a first in this category. It’s that powerful. (Only the Bible and the Constitution receive 6 stars.)” —Paul Tulenko, PhD, Syndicated Small Business Columnist, ScrippsHoward “Throw out employee suggestion boxes (they don’t work – and never have). Think twice about dangling monetary rewards to workers whose ideas save the company money (the pitfalls are numerous; moreover, it’s not necessary). These are just two of the surprising yet welldocumented messages in Ideas Are Free…” —American Way, American Airlines’ in-flight magazine IDEAS ARE FREE This page intentionally left blank IDEAS ARE FREE How the Idea Revolution Is Liberating People and Transforming Organizations Alan G. Robinson Dean M. Schroeder Ideas Are Free Copyright © 2004, 2005 by Alan G. Robinson and Dean M. Schroeder All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Permissions Coordinator,” at the address below. Berrett-Koehler Publishers, Inc. 235 Montgomery Street, Suite 650 San Francisco, California 94104-2916 Tel: (415) 288-0260, Fax: (415) 362-2512 www.bkconnection.com Ordering information for print editions Quantity sales. Special discounts are available on quantity purchases by corporations, associations, and others. For details, contact the “Special Sales Department” at the Berrett-Koehler address above. Individual sales. Berrett-Koehler publications are available through most bookstores. They can also be ordered directly from Berrett-Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626; www.bkconnection.com Orders for college textbook/course adoption use. Please contact BerrettKoehler: Tel: (800) 929-2929; Fax: (802) 864-7626. Orders by U.S. trade bookstores and wholesalers. Please contact Ingram Publisher Services, Tel: (800) 509-4887; Fax: (800) 838-1149; E-mail: customer.service@ingrampublisherservices.com; or visit www.ingram publisherservices.com/Ordering for details about electronic ordering. Berrett-Koehler and the BK logo are registered trademarks of Berrett-Koehler Publishers, Inc. First Edition Hardcover print edition ISBN 978-1-57675-282-1 Paperback print edition ISBN 978-1-57675-374-3 PDF e-book ISBN 978-1-60509-017-7 2008-1 Production management: Michael Bass Associates To Margaret, Phoebe, and Margot To Kate, Lexie, Liz, and Tori This page intentionally left blank CONTENTS Preface xi xv Acknowledgments CHAPTER ■ 1 1 THE IDEA REVOLUTION What’s in an Idea? 3 How Ideas Drive a Culture of High Performance The Need for Managerial Humility 9 6 Why Organizations Never Run Out of Improvement Opportunities 10 12 Overview of the Book’s Main Points Conclusion 27 vii viii CONTENTS CHAPTER ■ 2 29 30 42 46 54 THE POWER OF SMALL IDEAS Excellence Depends on Small Ideas Sustainable Competitive Advantage How Small Ideas Lead to Big Ones Small Ideas and Rapid Organizational Learning 38 The True Currency of Managing Ideas