Switch - Chip Heath [64]
To see what this means in a business context, consider a firm that invented an identity that subsequently became the engine of its success. The firm is Brasilata—it’s a US$170 million manufacturing firm in Brazil that produces various kinds of steel cans. As you’d imagine, the can manufacturing industry is relatively mature—not much growth, not much excitement. But Brasilata defies the stereotype of a boring, stuck-in-its ways manufacturer. In fact, it has one of the best reputations for innovation of any company in Latin America.
How does a manufacturer of cans become known as an innovator? Brasilata’s founders were inspired by the philosophy of Japanese car manufacturers like Honda and Toyota, which empowered their frontline employees to take ownership of their work. For instance, at Toyota, any employee who spotted a defect could stop the assembly line (this would have been unthinkable in Detroit at the time). Toyota and Honda also actively solicited ideas for innovation from their employees. In 1987, the founders of Brasilata launched an employee-innovation program modeled on the Japanese forerunners.
A new identity was the core of the program. Employees of Brasilata became known as “inventors,” and when new employees joined the firm, they were asked to sign an “innovation contract.” This wasn’t simply feel-good language. Top management challenged employees to be on the lookout for potential innovations—ideas for how to create better products, improve production processes, and squeeze costs out of the system. Procedures developed within the factory made it easy for inventors to submit their ideas. The program succeeded beyond any reasonable expectations. In 2008, employees submitted 134,846 ideas—an average of 145.2 ideas per inventor! This figure puts Brasilata on par with the Japanese trendsetters that had inspired the program.
Many of the suggestions led to the development of new products. For instance, in late 2008, Brasilata came up with a new approach for steel cans designed to carry dangerous or flammable liquids. To meet United Nations standards, such cans must be able to withstand a drop from 1.2 meters (roughly 4 feet). Traditionally, most manufacturers had reached this standard by thickening the metal layers, which used up more raw material and required new production processes. And the reinforced designs weren’t foolproof—the metal seams were prone to split if a can landed on an edge.
Brasilata’s inventors suggested a new design, inspired by car bumpers that collapse on impact. Their new steel can deformed slightly on impact, reducing stress on the critical seam. The new design resisted impact better while also reducing the amount of steel in the can.
The inventors have led Brasilata through emergencies. In 2001, a severe energy crisis—the “blackout syndrome”—forced the government of Brazil to ration energy. Businesses received a strict quota of electricity. The inventors went to work dreaming up power-saving ideas—hundreds of them. Within a few weeks, Brasilata’s energy consumption was reduced by 35 percent, falling below the company’s quota and allowing the company to resell its extra energy.
Another unexpected idea was jointly suggested by two employees: Eliminate our jobs; they’re not necessary anymore. The idea was accepted, but the company found a new place for the employees. Brasilata has a no-dismissal policy and also distributes 15 percent of its net profits to employees. It’s no surprise that Brasilata consistently appears on “best places to work” lists in Brazil.
Let’s remember something: This “inventor” identity, which has fueled business success and employee satisfaction, was made up. None of Brasilata’s employees were born “inventors.” The identity was introduced to them, and they liked the sound of it. It seemed to be a mantle worth wearing. Being an inventor has become a source of pride and strength.
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If cultivating an identity sounds