Dig into ideas
To keep a constant flow of ideas, Waggoner encourages them all. But not all transpire into something workable, so you need a way to evaluate them.
The first step is categorizing ideas into buckets. The big one at Echo is technology; then there are also sales, marketing and general business process ideas. Then, prioritize within each bucket.
“There’s a financial aspect,” Waggoner says. “So you’ve got to say, ‘What is it going to cost us to build this idea? What’s the return? Is it a nice-to-have or is it a need-to-have or is it a strategic needle-mover?’”
Just because something isn’t absolutely necessary, bursting with ROI or strategic in nature, doesn’t mean it c
an’t jump to the top of your priorities. Waggoner breaks ideas down into major projects and quick fixes. The latter can still make a difference, so consider, for example, how much value a quick fix could add.
“Making a user interface on a computer screen easier to navigate doesn’t mean a lot of money for the company, but it might be an aggravation to a thousand people that click on it a hundred times a day,” he says. “Oftentimes, those things can be done in a few man-hours of IT time. When you make a change like that, you’re bringing relief to an entire organization and it doesn’t cost a lot.”
If debate alone isn’t enough to distinguish good ideas, Waggoner pauses the process to gather data.
For example, Echo has been dipping its toe into an e-commerce initiative for several months. They’ve been debating who’s in the market for the product and whether the economics make sense. But the real clincher comes from reviewing actual data.
“We’re looking at very rich metrics: What’s the cost per click, what’s the cost per acquisition, what percentage of customers return and do business with us in the month following registration?” he says. “It becomes pretty mathematical. We had various opinions on whether we should go forward on this or not, but any reasonable person that sees the data, including me, I had to say, ‘I didn’t think this was as good as it’s turning out to be, and I stand corrected. We should invest more money in this.’”
In any case, the further along an idea moves, the more research it requires. Echo’s formal IT prioritization process offers a good glimpse into that. Waggoner can see which ideas make sense strategically, but because he doesn’t know the specifics, he sends good ideas to an IT business analyst.
The analyst, in turn, bounces ideas off of a group of “power users,” or key customers. If they seem to form a consensus, then the analyst specs out the project.
Next, it goes into a queue, where it gets weekly consideration from an IT steering committee, composed of the executives, some business analysts and some IT people.
“We review all of the IT projects from large to small, and we review the available resources,” Waggoner says. “Some things might keep getting pushed out, and things that have a high value-to-cost ratio might get slipped ahead. We’re just continuously reprioritizing as things come up.”
Whatever your decision on an idea, explain it to the employee who originally suggested it.
“Whether you do it or don’t, you’ve got to get back to the employee and tell them, ‘Yes, we’re going to go forward with this,’ or, ‘No, and here’s why,’” Waggoner says. “As long as they were heard, I think they’re happy to be in the inner circle of why decisions are made … and they’re encouraged to come back next time they have an idea.”
