Igniting Innovation- Small Business Owners Facilitating Flow of New Ideas

Meaningful Incentives

A successful program requires participation, which only occurs if people are motivated.

Some are encouraged to contribute because they have ideas or due to company loyalty. But for maximum involvement there needs to be some level of recognition.

Acknowledgement comes in many varieties – publicity, monetary rewards, non-monetary recognition such as honorary appointments or parking spaces, or participation in the implementation process. Reassigning the individual to the project team as an advisor, contributor or a lead (depending upon skills) can be very rewarding; however, small business owners must be sure there is a home for the person once the deployment is completed and production begins.

One of the thorniest issues is the monetary compensation package.

Some companies have a fixed sum that they award for suggestions that are acted upon while others have varying payouts based upon the size of the savings or new revenues or net income.

RFG has also found some companies that base the innovation award upon a percent of the net income, revenues, or savings. The monies have usually been a percentage, up to 20 percent, of the first year’s gains. Furthermore, some firms put a cap on the payout. Small business owners should consider the scope of the program and establish a clear reward system that they can commit to without modification should an idea prove to be exceptionally financially beneficial to the company.

Summary and takeaways

There is always room for improvement and innovative ideas.

Small business owners should encourage business partners, customers, and employees to participate as often as possible in the program. Individuals should know that no idea is dumb and that all will warrant consideration. It is also important that the steering committee and dedicated innovation team is staffed with people that are open to out-of-the-box thinking.

Too many ideas are killed by the NIH (not invented here) syndrome or by those resistant to change, especially in their own areas of expertise.

All companies should be open to innovation and have programs in place to facilitate the flow of new ideas. Small business owners should also ensure that all levels of management are receptive to change and new concepts; bureaucracy and closed minds can prevent an organization from being agile, which can cost the enterprise customer loyalty, market share, and new business opportunities.

Business and IT small business owners should create environments that facilitate the flow of new ideas and then proactively stimulate individuals to contribute innovative solutions to global opportunities and problems.

Companies today are valued more for their creative assets than for book value and gaining maximum value from an enterprise’s human assets will only occur if the environment is conducive to change and sensitive to ideas from all sectors.