Patagonia is a world-leading textile manufacturer that specializes in clothing for children and adults. Employees are the primary source of workplace improvements in this company, where empowerment is the norm and the suggestion system is called the Opportunity for Improvement Program. Patagonia employees submit written suggestions on a form that asks three questions: “What needs improvement?” “Why?” and “How should the improvements be implemented?” Employees keep a copy of their suggestion, send one to their supervisor, and send one to a central office where it is entered into a suggestions database and tracked. Rewards for suggestions that are implemented range from token gifts such as movie tickets to paid adventure holidays.

QUESTIONS

1. How does an organization know whether its suggestion system is worth the time and effort needed to make it work?

2. If a suggestion system is costing more to operate than it is generating in terms of improvements, how would you respond?