What industries can learn from NIBM’s initiative

• From ideas to impact and the untapped power of employee suggestions

NIBM Chairman Dr. Gunathilake Tantirigama	NIBM Director General Dr. D.M.A. Kulasooriya

The recent publicity provided by the Daily FT prompted me to attend the launch of the National Institute of Business Management’s latest initiative titled “From Ideas to Impact: Empowering the Next Generation of Entrepreneurs.” 

The event, held in November at the Trade Expert City in collaboration  with ICTA and the Ministry of Industry and Entrepreneurship to mark the Global Entrepreneurship Week 2025, was both timely and inspiring. It reflected a renewed national emphasis on recognising the power of ideas and the need to cultivate the entrepreneurial spirit among the youth of this country.

The opening address delivered by NIBM Chairman Dr. Gunathilake Tantirigama, was particularly enlightening. Speaking directly to the students, he reminded them not to underestimate the strength of their own ideas and not to be overwhelmed by the magnitude of the challenges ahead. He emphasised that a truly robust global entrepreneurial culture can only be developed when ideas are allowed to be nurtured, refined, and ultimately released into the world with confidence and clarity. His message underscored a truth often overlooked in our own institutional settings—that all great enterprises, without exception, originate from ideas, and that ideas, however simple at the beginning, possess transformative power.

Equally compelling was the address by NIBM Director General Dr. D.M.A. Kulasooriya. He reiterated that NIBM, through its Outcome-Based Learning (OBT) framework, strives to empower its students not merely within the confines of classroom instruction but far beyond it. He stated that NIBM aims to transcend traditional educational limits by encouraging its students to generate ideas, engage in practical problem solving, and contribute meaningfully to industry development. As a premier institute of professional and managerial education, NIBM intends to cultivate a culture of curiosity, creativity, and idea-driven action—elements that Sri Lankan industries desperately require today.

These messages serve as a compelling reminder that idea generation is essential not only for students and entrepreneurs but also for employees at every level of the workplace. In Sri Lanka, where industries often adhere to rigid structures and top-down systems, the potential for bottom-up idea generation remains severely underutilised. It is this gap that NIBM’s initiative encourages us to examine more seriously.

Why idea generation matters

From the standpoint of an employee—or a student—idea generation is not an abstract activity. It is the practical utilisation of one’s mind and direct experience? Individuals who engage daily in operational activities understand the intricacies, constraints, and inefficiencies far more deeply than higher management ever could. Over time, such employees become specialists in identifying the very factors that hinder or delay smooth workflow.

From the employer’s perspective, encouraging idea generation helps in several ways. Firstly, it reveals the competency levels of employees and assists in performance evaluations. Secondly, it contributes to improvements in productivity, quality, and workplace safety. Thirdly, it reduces resistance to change. An employee who proposes an idea is far more likely to support the implementation of that idea than one who is simply instructed to comply with an externally proposed change. Fourthly, it enhances morale, fosters a positive work ethic, and strengthens two-way communication. In essence, idea generation is not merely a management tool—it is an organisational philosophy. It allows both management and employees to work collectively toward improving operations and achieving long-term corporate objectives.

Why employees (and students) should be asked for ideas

Modern management practices strongly advocate for employee-driven ideas. Workers occupy a unique vantage point within the organisation: they see everything that happens in real time. While managers examine reports, charts, and KPIs, employees observe the actual wastage of materials, time, and effort. Employees are in an excellent position to recognise recurring problems, Identify bottlenecks and inefficiencies, detect wasteful practices, suggest process shortcuts or cost-saving improvement, and apply best practices learned from previous employment. adapt quickly to problem solving when empowered Ideas, moreover, tend to be catalytic. One idea often sparks another, resulting in a chain of improvements across departments. When employees experience the satisfaction of seeing their Ideas implemented, they are encouraged to continue contributing. Suggesting ideas becomes habitual—a natural part of their professional behaviour. Another important point is that employees accept self-generated change more readily. When an idea originates from an employee, it does not feel imposed. This dramatically reduces resistance and increases ownership of outcomes.

In Sri Lanka, however, many organisations still lack formal “speak-up” mechanisms. As a result, employees remain silent, disengaged, and often frustrated. In such environments, trade unions acquire disproportionate power simply because they serve as the only channel for workers to express concerns. If organisations create structured avenues for idea submission, they can improve morale while simultaneously reducing conflict and misunderstandings.

Idea generation is essential not only for students and entrepreneurs but also for employees at every level of the workplace. In Sri Lanka, where industries often adhere to rigid structures and top-down systems, the potential for bottom-up idea generation remains severely underutilised. It is this gap that NIBM’s initiative encourages us to examine more seriously

Benefits of idea schemes to employers and employees

When formalised, suggestion or idea schemes bring enormous benefits. Benefits to the Organisation in terms of reduced costs, higher efficiency and productivity, improved safety practices, better quality outputs, innovation in processes and products, increased customer satisfaction, reduced bribery and corruption through greater transparency, heightened internal communication, enhanced return on investment, stronger organisational culture.

Benefits to the Employee could be illustrated in terms of Improved morale and job satisfaction, tangible rewards or recognition, enhanced cooperation between workers and management, skill development,  and professional growth, greater job security, faster career advancement, workplace pride and a sense of ownership,  Increased employability after retirement. Idea schemes therefore operate as mutually beneficial systems, rewarding both employees and employers simultaneously.

Where idea schemes have been successful globally

Idea schemes have a long history. The earliest recorded example dates back to the 1860s in the Western world, gaining momentum in the early 20th century. However, the most celebrated success stories come from Japan and Singapore countries that systematically institutionalised idea-driven management cultures. Japan’s productivity revolution is inseparable from the concept of Kaizen—continuous, incremental improvement. Companies like Toyota and Matsushita became the global benchmarks for idea schemes.

Toyota’s “Creative Idea Suggestion System,” launched in 1951, remains one of the world’s most successful. The company has received more than 50 million suggestions since the program began. In 2023 alone, Toyota employees submitted 810,000 ideas, averaging 14.4 ideas per person, with an  astonishing 70% implementation rate. These figures demonstrate not only employee creativity but the company’s commitment to respecting and applying the ideas of its workforce.

Singapore’s public and private sectors adopted suggestion schemes as part of national productivity initiatives. In 1993, the Ministry of Defense alone received 187,481 suggestions, achieving 99% participation from its workforce, with more than half of the suggestions being implemented. Private companies such as Century Park, Sheraton, Nichicon Singapore, and NC Stanflex Company became iconic examples within the country’s productivity movement.

Sri Lanka

In Sri Lanka, the one standout example remains Dankotuwa Porcelain PLC, which implemented a successful suggestion scheme approximately three decades ago under the leadership of the eminent Chairman/CEO Sunil Wijesinha. The scheme flourished due to his strong commitment but gradually faded after his departure—a reminder that leadership continuity and commitment is vital to sustaining idea-driven cultures.

Why idea schemes fail

Despite clear global success, many organisations struggle to implement idea schemes effectively. Several common reasons explain these failures: Lack of genuine trust, Employees may view such schemes with suspicion, especially if past initiatives lacked transparency. Poor motivation: Without rewards, training, or recognition, employees lose interest quickly. Middle-management resistance: Supervisors sometimes perceive employee ideas as threats to their authority, insufficient training: Employees need guidance on how to identify negative situations and propose meaningful suggestions. No feedback loop: Failure to inform employees of the fate of their ideas leads to discouragement. Rigid bureaucracy: Complicated structures may hinder employees from accessing necessary information. Prejudices: Some managers still believe that ordinary employees lack the ability to generate useful ideas. Unless these root causes are addressed, suggestion schemes will inevitably collapse.

Prerequisites for an effective idea scheme

Through my experience in implementing and observing idea schemes across major manufacturing and service organisations, several fundamental requirements have emerged: A strong Kaizen culture embedded across the organisation, Unwavering top management commitment, Autonomy for managers and supervisors to encourage and evaluate suggestions, A transparent evaluation and reward structure, Budgetary allocations for departments to trial and implement ideas, Continuous training programs to help employees identify negative situations, Consistent monitoring, feedback, and recognition, A culture of patience and persistence as idea schemes evolve over time. When these elements are in place, the organisation creates a self-sustaining environment for continuous improvement.

Training employees to identify negative situations

Successful suggestion schemes require employees to adopt a mindset of observation. They must be trained to identify abnormalities, wasteful activities, unsafe operations, corrupt practices, Inconvenient, outdated or uneconomical methods. This form of training transforms employees into active problem solvers rather than passive participants. They begin viewing their surroundings through a scientific lens, asking questions such as: Can this process be done more easily? Is there a faster method? Is there a more accurate or safer approach? Can this be done at a lower cost? Can productivity or efficiency be increased? A dissatisfied mind, when channeled positively, becomes the gateway to innovation.

Common myths about idea schemes

Several myths continue to hinder the acceptance and success of idea schemes - Employees will only suggest trivial ideas. In reality, simple ideas often have the greatest impact. Once the scheme is launched, ideas will flow automatically. Training and continuous encouragement are essential. Only large companies can maintain such systems. Small firms often benefit even more because improvements are visible quickly. Employees will eventually run out of ideas. The human mind is limitless; ideas grow, not diminish. Ideas are easy to implement. Many require effort, cross-functional collaboration, and managerial support.

In Sri Lanka, many organisations still lack formal  “speak-up” mechanisms. As a result, employees remain silent, disengaged, and often frustrated. In such environments, trade unions acquire disproportionate power simply because they serve as the only channel for workers to express concerns. If organisations create structured avenues for idea submission, they can improve morale while simultaneously reducing conflict and misunderstandings

Conclusion: Moving from ideas to impact

NIBM’s initiative serves as a reminder that ideas are the foundation of all progress—whether in education, manufacturing, services, or public administration. For Sri Lankan industries to remain competitive in an increasingly globalised environment, they must create environments where employees and students feel valued, empowered, and encouraged to think. Countries like Japan and Singapore did not achieve their competitive edge through technology alone. They achieved it by recognising the creativity of their ordinary workers. Sri Lanka, too, can move forward by embracing a culture where every employee—regardless of position—is encouraged to contribute ideas and improvements.

If we truly desire a modern, productive, and innovative Sri Lanka, then we must recognise that the journey begins with an idea. NIBM has shown the way. Now it is time for industries to follow.

(The author is a productivity specialist and management consultant and could be reached via [email protected])