‘Idea campaigns’ curb costs, amp morale

In an uncertain economy, CEOs scramble, looking for ways to cut costs and keep their businesses afloat.

The most common step they take is to reduce the workforce by terminating employees, which reduces payroll but also has a devastating impact on morale and on customer service. It’s a short-term solution to a long-term problem. 

What these CEOs should be doing is looking for ways to reduce day-to-day costs without sacrificing quality or service, says John Tschohl, “customer service guru” who is founder and president of the Service Quality Institute in Minneapolis.

Instead of expensive consultants, Tschohl suggests CEOs turn to experts who are closer than they realize: their employees.

Those employees already are on site. They already are knowledgeable about your people, processes, products, and services. They know what changes could be made to improve productivity and cut costs. They’re just waiting to be asked for their ideas-so ask them. 

Idea campaigns stress the fact that every employee can help to reduce expenses and to improve productivity. You can help to ensure the success of an idea campaign by taking the following steps:  

-Limit it to no more than 30 days. If it’s longer than that, it will lose momentum and become boring. And, when it becomes boring, it becomes ineffective. 

-Focus on low-hanging fruit. If you ask for ideas that can save $1 a day, employees can relate to that. If you ask for ideas that will save $10,000 or more, they’ll be intimated.  

-Include humor. The campaign has to be fun. When it is, employees will become involved and enthusiastic. 

-Implement ideas quickly. If you don’t implement ideas in a timely manner, employees will be become disheartened and will be less likely to make suggestions the next time you ask for them. 

-Recognize employees. When you recognize employees who have contributed valuable ideas, it spurs others to do likewise. Don’t use money as recognition; it won’t last. Instead, celebrate employees and their suggestions with public praise. Make them look like heroes.