The Power of a Well-Implemented Suggestion System

by Sean Foster | September 26, 2024 | Strategy, Communication

Have you ever implemented or been involved with a company suggestion box? How did that work out?

Readers of my NewsBrief do so because they have a strong focus on business and personal improvement. The humble suggestion box fits into this category as well. But not just any suggestion box – we're talking about a system that could transform your business, one idea at a time.

Why Traditional Suggestion Boxes Fail

First, let's address the elephant in the room:

"We tried a suggestion box once. It didn't work."

If you like some stats, some research found that only 19% of organizations had a formal suggestion system, and only a third of employees felt it contributed positively to their company’s advantage.

Here are some reasons for suggestion box failures:

1. Lack of follow-up & transparency:

Ideas go in, but nothing comes out.

2. Limited implementation:

Only a tiny fraction of ideas typically get implemented or fully evaluated.

3. Anonymity issues:

While anonymity can encourage participation, it also prevents meaningful discussion.

4. Lack of a champion & leadership buy-in

Lack of a champion & leadership buy-in to drive the process through.

5. Lack of process for implementation.

40 Years, 20 Million Ideas: The Toyota Suggestion System

Before we dive into how you can make this work for your business, let's look at a master class in suggestion systems, this being Toyota.

In 2012, Toyota received about 40 million suggestions from its employees worldwide. That’s not a typo — 40 million! To put this number into perspective, that is around 40 suggestions per employee per year. Even more impressively, they implemented a staggering 99.9% of these ideas.

There’s a great book on this called 40 Years, 20 Million Ideas: The Toyota Suggestion System.

How do they manage this? There are a number of tactics but importantly Toyota has a dedicated team that reviews suggestions daily. They aim to respond to each idea within two weeks, often implementing small improvements immediately. This rapid response keeps employees engaged and the ideas flowing.

Making It Work in Your Business

Now, I know what you're thinking. "That's Toyota. We're not a giant corporation!" You're right, but the principles apply to any size of business, including yours.

Key Principles for Success

Here are some key principles to make your suggestion system work:

1. Make it easy:

Whether it's a digital form, a physical board, a simple email system, or paper-based, make submitting ideas as frictionless as possible.

2. Respond Quickly:

Aim to acknowledge every suggestion within 48 hours, even if it's just to say, "We're looking into it."

3. Evaluate & Implement Fast:

For small, low-cost improvements, try to implement within a week. This builds momentum and excitement.

4. Celebrate Successes

Recognize and reward good ideas, or even the right behaviour no matter how small. This encourages more participation.

5. Be Transparent:

Share the status of all suggestions, including why some might not be implemented.

6. Start Small:

Don't try to overhaul your entire business at once. Focus on continuous improvement rather than revolutionary ideas.

7. Formalise the process:

Detail how the process works (Include in your Standard Operating Procedures), stipulate that the majority (e.g. 80%) of suggestions must come from the employees own working area.

8. Appoint an Improvement Champion:

This is a person dedicated to ensuring the system is implemented and to help ‘coach’ employees with regard to their suggestions.

Remember, this isn't about implementing a full Kaizen system overnight. It's about taking that crucial first step towards a culture of continuous improvement. By focusing on getting your suggestion system right, you're laying the groundwork for bigger changes down the line.

I want to assure you that my support for Open Book Management (OBM), the principles of Kaizen, and the specific aspect we have discussed, Suggestion Systems, are all fully aligned.

So, are you ready to unlock the collective wisdom of your team? Start small, be consistent, and watch as small improvements add up to big changes in your business. After all, who knows your business better than the people working in it every day?

Please let me know how you're getting on with your Suggestion System, I'd love to share your experience with my readers. That way, many will benefit from your insights and experience.

Bonus: So do you still have doubts about the humble ‘Suggestion Box’? Or maybe you’ve had a bad or underwhelming experience with a suggestion system?

There is one that I have had, and it may resonate with your experience. What I struggled with in the past was that I wanted my employees to ‘think on their feet’, so I questioned the value in formalising such a system when in fact what I really wanted is to develop a continuous improvement mindset without bureaucratic delays. Well, no surprises — this is normal. In fact, at Toyota, the majority of suggestions for improvement are already implemented before they’re formally submitted. Well that makes sense!

So with that knowledge, I encourage you to read through the implementation steps. They are the same for already implemented vz ‘to be considered’ suggestions. Essentially the suggestion system operates as a way of capturing, sharing and celebrating improvements. So my final recommendation is to encourage natural improvements.