INNOVATION
  Encouraging innovation is one of the best sources of an operation becoming successful. Purchasing can be a major participant by recognizing and celebrating all ideas that are attempted in the purchasing process. This means the successful concepts as well as the good faith failures for all levels of employees.

  There are many nonfinancial incentives available to encourage innovativeness, but I also recommend monetary rewards for those ideas that improve techniques and cut costs. Your employees should reap the same kind of benefit that some contractors earn by identifying savings in transportation costs, etc. A percentage of the saved funds should be placed into an account for prizes, bonuses, and parties. These programs will reap benefits that will amaze management in public entities and owners of companies.

  By using the word “celebration” in the first paragraph, I mean it has to be communicated to all employees through memorandums, letters to file, posters, in newsletters, on bulletin boards, and at gatherings. As employees learn that management and Purchasing have emphasized the support of creative purchasing and cost-saving ideas, there will be an escalation in the quality of ideas and the number of suggestions submitted. The Purchasing manager must have sufficient knowledge about the processes to provide the leadership to make the best concepts successful and see that no suggestions are ridiculed or rejected.

© 1997 by Donald L. Woods, All Rights Reserved