EVER WONDER WHY MATCHBOXES usually have a sandpaper strike on only one side? Well, it didn't used to be that way. For decades, people could use either side of the matchbox to light their matches. But this changed in the early 1900s, when E a worker at a Swan Vesta factory pointed out this apparent redundancy in the design and suggested that the company could reduce production costs substantially by placing sandpaper on only one side of the matchbox. This simple idea has influenced matchbox design ever since, leading to millions of dollars in savings for manufacturers.
Employees often have creative ideas that can help their organizations. These breakthroughs range from ways to make the production process more efficient, such as the matchbox design proposal, to ideas for new products, like Frito-Lay's Flamin' Hot Cheetos. Those very spicy chips were invented by Richard Montañez, at the time a janitor at the Frito-Lay Rancho Cucamonga plant in California. According to Montañez, he was inspired by a video message from the president of the company that encouraged employees to "act like an owner." He pitched the chili-based snack to company executives, which led to Flamin' Hot Cheetos becoming one of Frito-Lay's most lucrative products. Other innovative ideas that stemmed from employees in nontraditional ways include the McDonald's Happy Meal and Southwest Airlines' humorous approach to its flight safety instructions. But how can companies best tap into the vast array of ideas that their employees dream up?
Innovation contests have become a popular answer. The idea behind these contests is good, but new research shows that the way many organizations conduct them needs improvement. The biggest takeaway: When leaders run innovation contests, they need to design the contest to match the organization’s objectives.
This story is from the Spring 2024 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the Spring 2024 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Serve More Customers With Inclusive Product Design
Use these questions to empower teams to design products for more diverse populations.
A Tale of Two Hot Sauces: Spicing Up Diversification
The contrasting paths of two hot sauce manufacturers show that managing exposure on multiple fronts is essential.
How Generative AI Can Support Advanced Analytics Practice
Large language models can enhance data and analytics work by helping humans prepare data, improve models, and understand results.
To Navigate Conflict, Prioritize Dignity
Four interrelated practices can bolster dignity, leading to more constructive problem-solving and collaboration.
How AI Skews Our Sense of Responsibility
Research shows how using an Al-augmented system may affect humans' perception of their own agency and responsibility.
Return-to-Office Mandates: How to Lose Your Best Performers
Your organization's highest-performing employees want executives to focus on outcomes and accountability, not office badge swipes.
The CEO's Cyber Resilience Playbook
What do CEOs who led through a serious cyberattack regret? Use this guide to learn from their experiences and take smarter actions before, during, and after an attack.
Engineer Your Own Luck
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities.
Acing Value-Based Sales
To get the best returns on innovative products, collaborate with customers to define and share the commercial opportunity.
Why Territorial Managers Stifle Innovation and What to Do About It
Managers who feel insecure about their status tend not to encourage novel ideas from their employees. Fostering their identification with the organization can change this behavior.
