| What would you say if I were to hand you a check | | | | Airlines. They are successful for many reasons, |
| for $25,000? $250,000? Before you get too excited, | | | | including their ability to reduce costs at every level of |
| I'm not going to do that, but I am going to tell you how | | | | their organizations. Then they pass those savings on to |
| you can find that kind of money and add it to your | | | | customers through reduced prices. The result? |
| bottom line. No, it's not by terminating employees or | | | | Increased market share and increase profits. |
| instituting pay cuts, two methods companies | | | | When it comes to instituting an employee suggestion |
| throughout the world are using in an effort to survive | | | | program that will be successful, I have some |
| the drastic downturn in the economy. | | | | suggestions of my own that I'd like to share with you: |
| If you want to cut costs and save thousands, if not | | | | Keep it short. These programs like BAD, for example, |
| millions, of dollars each year, the most effective | | | | runs for just 30 days. A short campaign keeps |
| method-and one that will have long-term benefits-is to | | | | enthusiasm high. |
| do so by eliminating waste, not people. How do you do | | | | Make it fun. Dry, dull campaigns get little attention, which |
| that? Simple: Ask your employees. | | | | means they get few results. On the other hand, when |
| There is waste in every organization. The challenge is | | | | you incorporate fun and humor, employees become |
| to identify that waste and then eliminate it. Your | | | | more involved. |
| employees are the experts. They see where the | | | | Build it on recognition. You don't have to offer |
| waste is-in time, procedures, and materials-throughout | | | | monetary rewards or trips to Las Vegas to get |
| the organization. You need to ask them to identify that | | | | employees to participate. Recognition is a much |
| waste and to make suggestions on how to eliminate it. | | | | stronger motivator than money. Recognize employees |
| When you do, you will build morale by making those | | | | in a timely manner through public praise. That might |
| employees feel like you value their ideas-and you will | | | | include an article and photograph in the company |
| improve your bottom line. | | | | magazine or a simple pizza party. |
| Many employee suggestion programs fail for one | | | | Involve everyone. The backbone of a successful |
| major reason: Executives are only interested in ideas | | | | employee suggestion program is to get all employees |
| that will save the company $100,000 to $1 million. They | | | | involved. That means everyone from frontline |
| fail to identify the low-hanging fruit, the small savings | | | | employees to executives. The idea is to get everyone |
| that quickly add up to big money. Let me give you an | | | | to consider his or her job and ask, "Is there a better, |
| example. There are programs like BAD-Buck a | | | | less-expensive way to do this?" |
| Day-that asks each employee to identify a way to | | | | Implement ideas quickly. Nothing will kill a suggestion |
| save just $1 a day. It has been used successfully | | | | program faster than a long lag time in implementing |
| during the past 30 years by 3,000 companies | | | | employees' suggestions. If you don't implement ideas |
| throughout the world. | | | | quickly, employees will lose interest-and faith-in what |
| Right now you are probably thinking, "Why in the world | | | | you are trying to accomplish. |
| would I go to the trouble of instituting a cost-savings | | | | An effective cost-reduction campaign is based on the |
| campaign if it's only going to result in savings of $1 a | | | | assumption that employees have worthwhile ideas. |
| day?" I'll tell you why-because that $1 a day adds up to | | | | And those ideas can mean the difference between |
| a lot of money, money that can make a huge | | | | your company's failure and survival. If you head a |
| difference in your bottom line. | | | | publicly held company, you can dramatically improve |
| Consider this: There are 250 working days in a year. If | | | | the value of your stock by reducing costs and |
| you have 1,000 employees and they each identify a | | | | eliminating waste. On the other hand, if you miss your |
| way to save $1 a day, you are looking at a yearly | | | | earnings projection by just one cent, the value of your |
| savings of $250,000. If your company has 100 | | | | stock could plummet by 20 to 25 percent. |
| employees, your annual savings would be a | | | | In today's dismal economy, if you want to survive and |
| respectable $25,000. If you doubt the impact of cost | | | | grow, you must look for ways to dramatically eliminate |
| reduction and waste elimination, look at service leaders | | | | waste and reduce costs. Ask your employees to help |
| like Amazon, Costco, Wal-mart, and Southwest | | | | you and you will be amazed at the results. |