Need Money-Saving Ideas? Ask Your Employees

Looking for new ways to save money in your business? Why not ask your employees? That's what an article by John Tschohl, an international service strategist and speaker, asks. Here are some exerpts from the article that I hope gets your creative juices flowing.

State Bank used a program developed by the Service Quality Institute in Minneapolis, Minnesota, called Buck-A-Day, or BAD, which asks each employee to identify a way to reduce costs by at least $1 a day. The campaign lasts just 30 days, which helps to keep enthusiasm high and reinforces the idea that employees are the best source of cost-savings idea for any company. They know better than executives how you can increase revenues, reduce waste, and improve customer service.
The idea behind BAD is to get employees to look for relatively simple savings, to get them to consider each job or task and ask, "Is there a better, less-expensive way to do this?" The program has been used by more than 3,000 companies throughout the world and has a participation rate that ranges from 60 to 80 percent. That's impressive, considering that the typical suggestion system has a 1 to 6 percent participation rate.Why is BAD so successful? It's fun, it's built around recognition, and feedback is immediate. One of the recognition devices BAD uses is a poster with a mug shot of each employee who makes a suggestion that is implemented. That photograph is printed on a Wanted: More Cost Reducers poster that lists the employee's name, suggestion, and savings to the company.
Adding to the success of the program is that it doesn't intimidate employees. By asking them to make suggestions that will save just $1 a day, they know that all ideas will be considered and that they won't be ridiculed for making suggestions that don't carry with them astronomical savings. A few suggestions to get the program started:

1) Make the program fun and non-threatening.
2) Get total commitment from employees.
3) Publicize the program.
4) Give timely feedback to employees who make suggestions.
5) Recognize employees who suggestions are implemented.
6) Use recognition, not just money, as an incentive to drive the program.