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Organizational Innovation
About
Innovation Network
- O r g a n i z a t i o n a l _ I n n o v a t i o n -
We talk a lot about thinking innovatively or creating learning organizations or empowering our employees but, too often, we don't get much further than talk. And, then, every once in awhile an organization comes along that makes it all look simple. An example is ipd Company, a small auto parts company in Portland, Oregon, that pays its employees to read. And, not just business books, but a wide range of self-improvement books from "Passages" to "The Velveteen Rabbit." And, not just books, but also tapes (Depak Chopra to Ray Kroc's "The Making of McDonald's") and audio/video seminars.
Richard Gordon, president of ipd, started the "Learn and Earn" program in 1988 when he began to wonder, "what would it be like if our people read the same or similar books?" Gordon states, "I began reading books like 'In Search of Excellence,' 'Innovation & Entrepreneurship,' 'Living, Loving and Learning,' 'The Empowered Manager,' 'The One Minute Manager,' 'The Road Less Traveled,' etc. in 1982 after I spent the previous twenty years reading such towers of literature as 'Road&Track,' 'Car&Driver,' 'AutoWeek,' 'Motor Trend,' etc."
Maybe the company would become wiser as a whole.
Gordon says that just after he turned 40 he realized he had a case of "tunnel wisdom," knowing a whole lot about very little. As he broadened his own reading, he began to believe that if his entire organization began to read and discuss similar books, things would change ... maybe communication would improve or conflict resolution would become more tolerable and maybe people would understand and even embrace change. "Maybe the company would become wiser as a whole," speculated Gordon.
Today, ipd has a library of over 1400 books, tapes and videos located in the company's lunchroom. Each book is assigned a dollar value, most averaging $25 although the range is from $5 ("Liar's Poker," Bill Cosby's "Childhood") to $75 (Juran's 800 page "Quality Control Handbook"). Employees can read any book that interests them but in order to earn the assigned value, they must write the equivalent of a book report, which is stored in a three-ring binder in the lunchroom. Gordon reads every report.
Gordon states, "It isn't my job to force employees to learn, but to create an atmosphere that encourages continuous learning." However, some books are required reading for managers who are expected to set an example for others. Also, "The Power of Ethical Management" by Norman Vincent Peale is required reading for all new workers within 90 days of being hired.
All employees also participate in a monthly "Round Table" discussion where any topic is fair game. Gordon credits the Learn and Earn program for improving employee communication skills to the point that these open discussions can be effective forums for sharing ideas and concerns. "Before our communication skills were improved," he states, "people could have retreated into defensiveness and turf protection and nothing would ever have changed."
Gordon frankly assesses the program: "Not everyone at ipd loves the Learn and Earn program, but the 'right' people do, and they're the ones who will help us build our future."
Another ipd program is the Champion Products Program which encourages employees to propose new products for the company's mail order catalog of Volvo parts. If the part is added to the catalog, the employee gets 8% of the product's gross profits for the first year.
For more information about the Innovation Network, call 805-965-8477 or E-mail 73751.3361@compuserve.com or staff@thinksmart.com