IBM Ideas is a program designed and administered for IBM and its wholly owned domestic subsidiaries by Workforce Solutions, an IBM company.
Introduction
IBM Ideas Is a replacement for IBM's 63-year-old Suggestion Plan. It is a world-class program designed to increase participation and continuous improvement in support of IBM's MDQ strategy. All employees, including managers, can submit their ideas and be recognized. The evaluation process has been simplified and a new online application is available to reduce cycle time.
But the success of the new IBM Ideas Program hinges on the support of the immediate manager.
The Manager's Role
The manager occupies a pivotal position in the IBM Ideas Program-facilitating the processing of IBM Ideas, evaluating suggestions for local implementation, serving as an advocate for his or her employees, and communicating and promoting the program.
Facilitating the Process
All IBM Ideas will be submitted to the managers of the originating employee or team. When empowered to do so, employees may implement the idea prior to submission. Before making a formal submission, employees may discuss their ideas with their managers informally. These preliminary discussions can help managers prepare to classify and process ideas submitted to them.
Employees should be encouraged to submit their ideas online, using the IDEAS application. Hard-copy submission forms will be available for use by those employees who do not have convenient access to terminals. The online application includes help screens to assist submitters, managers, and evaluators with the process. The hard-copy versions of the forms also include instructions on the process.
Ideas submitted online will automatically be forwarded to the submitter's manager of record. Hard-copy forms will be delivered to the manager by the submitter. In either case, the manager's first responsibility will be to classify the idea as Tier 1, Tier 2, or Tier 3 and indicate the decision on the appropriate online or hard-copy form. The three tiers are defined in the IBM Ideas Program Guide, and the definitions are repeated below.
Tier 1-Ideas which meet any of the following criteria, including ideas which may have formerly been submitted under Cost Effectiveness or similar programs:
Tier 1 ideas will be reviewed by the immediate manager. The submitter is encouraged to implement the idea prior to management review if empowered to do so.
If an idea is not classified as Tier 1, it will be classified as Tier 2 or Tier 3.
Tier 2-Ideas which pertain to operations within the submitter's department, function, or branch but fall outside the definition of Tier 1.
Tier 2 ideas will be evaluated by the submitter's manager or by a person he or she designates.
Tier 3 -Ideas which are not classified as Tier 1 and meet one of' the following criteria:
Tier 3 ideas will be forwarded by the submitter's manager to the IBM Ideas Department for handling.
Advocacy
Managers 'responsibilities go beyond the mechanics of idea processing. They must support and encourage innovative thinking about continuous improvement. They should coach their employees in developing and explaining their ideas to the point where their value is understood. They should ensure that the evaluations they conduct or arrange for are thorough, objective,- and demonstrate a readiness to implement whenever feasible. When employees are not satisfied with evaluations conducted on Tier 3 ideas, their manager should support them in direct contacts with the evaluators until an appropriate conclusion is reached and understood by all parties.
Communications
Managers have the primary responsibility for announcing and training employees on the new IBM Ideas Program. These responsibilities are outlined on the following pages.
After initial announcement managers have numerous ongoing communications responsibilities:
The Announcement Meeting
Managers are asked to communicate the new IBM Ideas Program at a kickoff meeting. This meeting will identify the manager with the program, emphasize the manager's pivotal role, and demonstrate that the manager is highly receptive to idea submissions.
The recommended format for the meeting is as follows:
Program materials are designed to be comprehensive and self-explanatory. But when questions arise, managers should not hesitate to contact the IBM Ideas Department for guidance.
A special IBM Ideas hotline has been developed to provide fast answers for managers seeking assistant Call 1-800-873-4332.
IBM Ideas is an important program that will help IBM build its competitive strength in the marketplace. Every manager's commitment is essential to make it a success.
IBM is relying on all managers to communicate the significance of the IBM Ideas Program to their employees, who should understand that their manager will act as their advocate in exploring the potential of an idea.
Foil 1
Purpose of the IBM Ideas Program
Support MDQ strategy
Increase participation
Encourage continuous improvement
Foil 2
Development of the IBM Idea s Program'
Review of Suggestion Plan
Internal survey
External survey
Defined a "world class" plan
Foil 3
Highlights of the IBM Ideas Program
Open to all employees
Ideas on virtually any subject
Active management support
Simplified, faster procedures
Three tiers of ideas
Recognition and awards
Evaluator recognition
Integrated with other recognition programs
Foil 4
Defining the Tiers
Tier 1
Tier 2
Tier 3
Foil 5
Awards for IBM Ideas
Tier 1
Tier 2
Tier 3
Exceptional value ideas
Foil 6
Submission Process for the IBM Ideas Program
Identify opportunities for improvement
Discuss with manager
Submit idea
Provide facts
Questions and Answers
At this point the presenter should open the meeting up to questions. The following indicates the types of questions employees might ask and suggested answers:
1. Question: Why is IBM introducing the IBM Ideas Program at this time?
1. Answer: The IBM Ideas Program is needed to encourage higher levels of employee participation to support IBM's MDQ strategy.
2. Question: Why has IBM replaced the Suggestion Plan?
2. Answer: The Suggestion Plan has served IBM well for many years, producing important savings for the company. But because of its many restrictions on employee and subject-matter eligibility and its complex administrative procedures, the Suggestion Plan did not encourage the broad-based participation IBM is looking for.
3. Question: What will happen to the suggestions that 1 submitted under the old Suggestion Plan?
3. Answer: They will continue to be administered under the provisions of that plan.
4. Question: Is the IBM Ideas Program the same in all U.S. business units?
4. Answer: Recognition for Tier 1 ideas will vary. by business unit or location, as will the criteria and process for determining any additional recognition for ideas which receive an initial award of $5,000. Over time, it is expected that business units will modify other aspects of the IBM Ideas Program to meet their particular needs.
5. Question: Where do I submit my ideas?
5. Answer: All ideas must be submitted through your manager.
6. Question: May I first submit my suggestion to someone other than my immediate manager?
6. Answer: If your manager is unavailable, you may submit your idea through any covering manager.
7. Question: May I send an idea to the IBM Ideas Department without showing it to my manager first?
7. Answer-. No. Suggestions not routed through an advocate manager will be returned.
8. Question: If an idea is not implemented locally, can it still be submitted to the IBM Ideas Department for evaluation at other locations?
8. Answer: With the support of your manager, an idea can be submitted for consideration at other locations that may benefit from its use.
9. Question: How long will my suggestion remain active under the new IBM Ideas Program?
9. Answer: Your idea is active from the date of submission until the evaluation is complete and the response is forwarded to you by your manager.
10. Question: Who is responsible for evaluating my idea?
10. Answer: If your manager cannot evaluate the suggestion locally, it will be forwarded to the IBM Ideas Department for routing to a qualified evaluator.
11. Question: If a Tier 1 idea is adopted locally, can it still be submitted to the IBM Ideas Department for application at other sites?
11. Answer: Yes. If your manager, as your advocate, supports the evaluation of your Tier 1 idea for use at other locations, it should be transmitted to the IBM Ideas Department as a new Tier 3 idea. If it is implemented there, you will be eligible for recognition.
12. Question: Who is responsible for identifying other IBM locations that may wish to adopt my suggestion after it has been implemented locally.9
12. Answer: The evaluators and the IBM Ideas Department are primarily responsible for finding other locations. The IBM Ideas Department will also accept input from the submitter and advocate-manager when specific locations are known.
13. Question: What incentive do the evaluators have to adopt my idea and ensure that I receive a timely response?
13. Answer: Evaluator recognition is a key feature of the IBM Ideas Program. Points will be given to evaluators for evaluating Tier 3 suggestions. Additional points will be awarded for adoption of ideas they evaluate and for the timeliness of their responses. Evaluators will receive annual awards from the IBM Ideas Department based on total points accumulated. For 1993, the maximum evaluator award will be $1,000.
14. Question: What can I do to increase the chances that my idea will be recognized?
14. Answer: You can increase the chances for recognition by putting together a convincing business case for your idea in your submission. Those suggestions that cause action will be recognized.
15. Question: Why are Tier 2 higher value ideas sent to the IBM Ideas Department when they have already been evaluated for local implementation?
15. Answer: Suggestions submitted under the former IBM Suggestion Plan had an active life of 2 years. Prior to granting an award under the IBM Ideas Department will conduct a pre-date search to identify any potentially eligible ideas submitted under the Suggestion Plan. Duplicate awards will be paid under the terms of the Suggestion Plan and the IBM Ideas Program when appropriate.
16. Question: Will IBM Ideas have an active life of two years as suggestions did under the former Suggestion Plan?
16. Answer : No. Under the IBM Ideas Program, ideas which prompt management action will be recognized. Ideas which are not adopted will be closed. If the same idea is submitted at any time in the future and adopted, the submitter who prompted action will be recognized.
17. Question: Why are there no cash awards for adopted Tier 1 ideas?
17. Answer: Because employees are empowered to implement Tier 1 ideas on their own or because Tier 1 ideas relate to-specific assigned tasks, it was felt that recognition through existing awards and compensation programs was more appropriate. Nevertheless, IBM wants to measure its success in motivating employees to participate in the continuous improvement of every aspect of business operations. Consequently, many business units are providing non-monetary recognition for employees who submit Tier 1 ideas.
18. Question: How do awards paid under the IBM Ideas Program differ from those paid under the Suggestion Plan?
18. Answer: Under the Suggestion Plan, an initial award was calculated at 25 percent of the first year's estimated savings to IBM. If the initial award was $200 or more, the suggestion was considered for an additional award one year after implementation. The additional award amount was calculated at 25 percent of the first-year actual savings, plus second-year estimated savings, less the initial award already paid. The maximum total award was $150,000.
The IBM Ideas Program awards a minimum of $50 for the use of a Tier 2 or Tier 3 idea, regardless of its value. Ideas which are expected to produce a two-year savings of less than $1,000 do not warrant the expense of evaluating detailed savings and implementation costs. When two-year savings are estimated to be at least $1,000, a more detailed evaluation is conducted.
Awards for such higher value ideas are based on approximately 25 percent of the value that the idea is expected to produce for the first two years and are paid all at once up to an initial maximum of $5,000. Because the savings or other value are estimates, and the actual life of the idea may not be known precisely, the award amounts are derived from a matrix and rounded off. Ideas receiving $5,000 awards that prove to have exceptional value to IBM will be reviewed again later and may be given additional cash awards up to $145,000. The maximum total award that a suggestion may receive is $150,000. Non-recoverable savings (such as those not resulting in a reduction in operating budgets) will not be taken into consideration when determining these additional cash awards.
19. Question: If I submit an idea which clearly deserves an award larger than $5,000, why do I have, to wait a year or more to receive my additional award?
19. Answer: The initial award is based on an estimate of the first two years of savings to IBM, or on intangible criteria. Ideas considered for additional awards will have been implemented for up to a year or more, and actual savings data will be available for consideration.
20. Question: What are the criteria for additional awards?
20. Answer: The ideas considered for additional awards will be compared to each other on the basis of recoverable savings to IBM, plus other criteria such as creativity, value of the idea in the context of contributions recognized under other IBM awards programs, and so forth. For the purpose of this comparison, all IBM Ideas receiving an initial $%,000 award will be considered.
21. Question: Who will determine additional awards?
21. Answer: Each business unit, area, or site will appoint a committee to consider for additional recognition IBM Ideas which were awarded $5,000. The committee will be appointed by the general manager and will normally include the personnel manager, controller, and others as appropriate.
22. Question: Why are suggestions pertaining to software released for external customer use not eligible for consideration under the IBM Ideas Program?
22. Answer: The business and legal exposures which stem from the copyrightability of software are greater in the case of external distribution for customer use than they are when distribution and use are solely internal. Therefore, stronger precautions are required for software for external customer use. By its nature, the IBM Ideas Program does not ensure a sufficiently controlled development environment and sufficiently protective conditions of software acquisition by IBM to support the greater risks associated with external distribution and customer use.