State farm idea management

©, Copyright, State Farm Mutual Automobile Insurance Company, 2010 1

Idea Management at State Farm

Systems Integrators and Knowledge Management

Carol Csanda – Director – Strategic Resources

State Farm Insurance Company

May 18, 2010


What is Idea Management?

• Systematic program to promote targeted innovation

• Usually a series of topical, time-boxed challenges

• Allows groups to capture, collaborate, develop, and rate ideas


Two Types of Idea Management Campaigns

• Broad-based campaigns– Usually with Executive Sponsorships– Ideas will end up in the “funnel”– Resources may be across multiple departments

• Local campaigns– Campaigns run at the unit, division, department level– Sponsorship and review teams from local area– Ability to implement ideas selected with given

resources


Industry Success

• Companies who have used Idea Management:– IBM’s Innovation Jam– Starbuck’s “My Starbuck’s Idea”– Dell Computers – “IdeaStorm”

• Our vendor’s clients have claimed in excess of $350 million cost savings in 2007/2008:

– Cargill– Dow Chemical– Wal-Mart– Merck– Whirlpool


Phases of an Idea Campaign• Planning

• Idea Harvesting– Idea Submission– Commenting (collaboration /refinement)

• Peer Rating (a.k.a. star rating) • Review Processes

– Review Team– Executive Summary/Business Case Development for Top Ideas– Leadership Reviews

• Selection of Ideas for Implementation • Communication of Results


KM Team Roles

• As the business sponsor for Idea Mgmt at SF, the Knowledge Management team within SR provides consulting services to business partners desiring to pursue Idea Mgmt campaigns.

• Initially, this will be done in partnership with the KM Leads

• As knowledge transfer completes, the KM Leads will become the primary point of contact within their respective organizations for Idea Management.


Business Partner Roles

• Sponsor of the campaign– Define the goal statements– Establish success criteria– Communications to participants

• Review Team– Review ideas– Prepare business cases for executive review– Provide conclusions for ideas which includes feedback to the

idea generators– Facilitate hand over from the review team to implementation

teams, if appropriate


Business Partner Roles, Cont’d

• Executive Review Team

– Selects which ideas are approved for execution

• Sponsor of the campaign

– Provides funding for approved ideas

– Assigns ownership for execution upon approved ideas

– Tracks progress

– Communicates results of campaign and progress on executables


Review Processes

• Can use only “star” rating

• Can involve multiple review rounds

• Can use weighed criteria to narrow the field of ideas

• Can use consensus or individual review

• Can request additional development for additional rounds of review (e.g. Executive Review)


Rating Criteria – Broad Campaign

• Feasibility – The concept is feasible• Fit – The concept enhances our brand• Risk – the risks are acceptable to develop• Competitive Advantage• Early Adoption• Sponsorship • Competency• Pace• Benefit• Leverages Core


Leadership Idea Campaign

7,000 Leaders asked to respond to:

– How can State Farm use Social Media to be more relevant to consumers?

– What products and services will Gen Z want from State Farm in 10 years?


Results

• 400 ideas submitted

• 3500 people contributed

• From these:– Selected 35 ideas for Review Team for Social

Media– Selected 90 ideas for Review Team for Gen Z

• Top 10 in each group to Executive Review

• Selected 5 from each group

Education

State farm idea management