The Employee Suggestion Program: Leveraging All the Talent Cherry Hudson Continuous Improvement Manager Hardware and Equipment Division Corning Cable Systems www.questforum.org

Copyright QuEST Forum 2002-04

Introduction • The Employee Suggestion Program - A winning formula for identifying ideas that leverage world class solutions. • Successful Programs Create: – Cost Reduction – Continuous Improvement Culture – Improved Morale

Discussion Topics • Why do companies need employee suggestion programs? • What are the critical success factors for a suggestion program? • What has Corning Cable Systems achieved with its suggestion program?

CISP: Continuous Improvement Suggestion Program

History of Program at Corning Cable Systems • • • •

1987: CISP started at CCS’ Keller, Texas plant 1997: Additional commitment made with full-time Analysts 2001: CISP expanded from 1 to 7 CCS Hardware Plants, 8 X more employees covered by program 1998-2002: Employee Involvement Association Awards – Premier Performance Awards for Industry Group and Organization Size 8000

Proposals Submitted

6000 4000 2000 0

1996 1997 1998 1999 2000 2001 2002 2003 2004

CISP Process Flow

Why Do Companies Need Employee Suggestion Programs? • Staying competitive – Adapting to today’s business world

• Taking cost reductions to the bottom line – The “20” of the 80/20 rule

• Employee morale – Promoting and capturing innovations at all levels – Ownership and recognition – For Corning, emphasizing one of our core values: The Individual

Critical Success Factors: Management Support • Giving public recognition – The higher the management level, the better

• Providing staff and funding • Encouraging staff to support participation • Programs lacking good management support will exist, but will not thrive!

Critical Success Factors: Training Plan • Management education – combat old ideas about the employee’s role in the business • Employee education – so everyone knows how it works – Employee orientation – Department meetings or small group sessions

• Education is key – do it continuously!

Critical Success Factors: Right Resources • Choose people with the right analytical, communication, and innovation skills to execute your program • Too few resources can minimize program effectiveness – CCS’ 5 full time Analysts analyzed 4,196 proposals in 2003: 57% of proposals were approved

Provide the resources needed to succeed !

Critical Success Factors: Goals and Measurements

• Visible goals and measurements lead to results! • CCS sets goals and measures: – Participation: Health of Program – Cycle Time: Efficiency of Program – Savings: Effectiveness of Program

Determine your direction!

Critical Success Factors: Program Flexibility • Develop a strong core process and program • Adapt as needed to fit your particular work environment • Creativity and innovation pay big dividends!

Critical Success Factors: Database and System • Easy access for users • Efficient operation of program • Rapid turnaround of proposals • Global visibility of information

Critical Success Factors: Program Credibility • Provide objective analysis • Calculate costs and savings when possible • Report accurate numbers • Use conservative forecasts • Give informative feedback on cancellations to proposers

Critical Success Factors: Rewards and Recognition

Corning Cable Systems’ Achievements • Increase in Employee Participation – Number of proposals submitted / average number of employees

• Reduction in Idea Processing Cycle Time – Average number of days from idea submission to implementation

• Increase in Average Savings / Employee – Annual dollars saved from CISP / average number of employees

Corning Cable Systems’ Achievements Employee Participation 1.5

100

1 0.5 0

2001

2002

2003

2004

Savings/Employee Increase

(%)

Proposal Processing Time 80 60 40 20 0

2001

2003

2004

Savings/Cost of Goods Sold

50%

1.2

40%

0.9

30%

2002

(%) 0.6

20% 10%

0.3

0%

0

2002

2003

2001

2002

2003

Corning Cable Systems’ Savings in 2003

Savings = 9 X the cost of program

Elements of a Best Practice Management Support Training Plan Right Resources Goals and Measurements Program Flexibility Database and System Program Credibility Rewards and Recognition

Next Steps • If you have a suggestion program already, look at it again: – Is it achieving all it can? – Do you have appropriate goals and measures? – What elements for success are missing?

The Suggestion Program Use it to leverage all the talent in your business – It’s available and waiting for you now!

If Your Company Desires: • Bottom line savings • Continuous improvement culture • Improved employee morale

Try CISP!

The Employee Suggestion Program: Leveraging All the Talent Cherry Hudson

Continuous Improvement Manager Hardware and Equipment Division Corning Cable Systems 817-431-7423 [email protected]