Want Innovation? Just Ask For It

Lately, I’ve seen quite a few articles about the need for innovation in the banking industry. My response is, “don’t worry, people are already innovating.” Well, maybe you should worry, because the innovation is coming from the fringes of the banking industry. Personally, I’m not convinced that all decision makers want innovation, unless it includes fee income.

Right now, your employees are sitting on a treasure trove of ideas. Some of these innovative people have always “thought outside the box.” Actually, that’s wrong. Innovative people don’t even recognize that there is box to think outside of. They just do it. The question is, why won’t you let them try the ideas out? If Metavante and Mortgagebot could come from inside a bank, then Wesabe, Prosper and Obopay could have also.

I think there needs to be a cultural shift that fosters innovation. Here are six steps that can help:

Allow an environment that encourages innovation
It starts at the top and trickles down. Employees have to feel that people will at least listen to their ideas and act on the good ones. The fallacy of good ideas only coming from the top is a recipe for doom.

Listen to all employees
IT employees aren’t the only ones with ideas. Tellers, CSRs, Underwriters, File Processors, etc. have good ideas also. Everyone should be able to express their ideas, especially the ones that have constant customer contact.

Send people to training
Learning helps one develop new ideas. A class may introduce a new technique or technology to an employee that they can bring back to the company. Also, investing in your employees helps make the company stronger. I know that my continued education has helped in a lot of the software that I have developed for my employer. Their investment in me has been paid back over 20 times in the skills I have used to do my job.

Send your employees to conferences
Have employees expressed an interest in going to an industry related conference? Were they turned down? If so, why? The amount of information you can obtain at a conference is phenomenal. Speaking with others about their operations and finding out what does and doesn’t work is priceless. A lot of times, it’s the lower level employees that need to be at these conferences. They are the ones that can benefit most. It’s not always about a company paid vacation.

Beta test the idea
The company doesn’t have to take a new idea and roll it out company-wide or to all their customers. Testing the idea on a subset of people can let you know whether the idea is worth pursuing. If you find that it is viable, then you can implement it on a wider scale.

Reward your innovators
Nothing ticks me off more than seeing someone take credit for something they didn’t do. If you want to kill innovation, forget to acknowledge the little guy. Everyone likes a little recognition for something they did above and beyond the norm. A company-wide email can do wonders. A monetary bonus wouldn’t hurt either.