Table of Contents
1.0 Your ideas have value
Since it was established in 1928, IBM's Suggestion Plan has been good for both the company and the employees who submitted useful ideas. For example, from 1975 to 1984, employees' suggestions have saved the company over $300 million and earned nearly $60 million in awards for IBMers.
Today, one of our business goals is to be the most efficient in everything we do. Another goal is to achieve the highest quality for our products. To manage these goals, we will need imaginative and cost-saving ideas more than ever before. I encourage you, therefore, to look for better ways to run the business and to submit your suggestions.
This document can help you do that. It describes the improved IBM Suggestion Plan and how you can use it to make the most of your good ideas.
John F. Akers, President and Chief Executive Officer
1.01 Preface: A Better Way
The idea that crossed your mind--the impression you had--might just be worth something to IBM. And you.
Was it a way to reduce paperwork? An improved manufacturing procedure? A better way to boost productivity? In other words, was it a specific solution to a specific problem--one that could help the company run its operations better, and perhaps save it money? If so, it may earn you an award--from $50 to $150,000--under the IBM Suggestion Plan.
Of course your idea has value only if you do something about it. And you can, using the IBM Suggestion Plan. The Plan provides a set of procedures for evaluating ideas and rewarding those who submitted them. Since 1928, when the Plan was introduced, IBM has implemented hundreds thousands of worthwhile ideas that have helped it grow and become a leader in industry. At the same time, the company has been awarding millions of dollars to employees each year for their workable ideas.
In short, your useable suggestions are good for the company. And they're good for you.
This document on the IBM Suggestion Plan explains who is eligible to participate and how to submit ideas. Keep it handy. You may want to refer to it the next time you think of a better way to do something.
If, after reading the booklet, you need additional information or some help in submitting an idea you should discuss your needs with your manager, or the manager of the Suggestion Department serving your location.
Each suggestion submitted to IBM is with the understanding that it will be within the complete discretion of the company to publish, use, or refuse it. If the suggestion is published or used, the decisions of the company shall be final, binding and conclusive as to the amount of a cash award, if any, and the person or persons entitled to the award, and all other matters concerning the suggestion and its publication and use.
1.1 Who is eligible to participate
All IBM employees are eligible to participate in the IBM Suggestion Plan including:
Non IBM employees cannot participate in the IBM Suggestion Plan.
IBM does not solicit ideas from nonemployees; unsolicited ideas and suggestions from nonemployees are referred to the Manager of External Submissions at Corporate Headquarters.
All decisions of IBM concerning employee eligibility shall be final, binding and conclusive and in its sole discretion.
1.2 Who is eligible to receive an award
Eligibility for an award is determined by IBM management based on the suggester's job responsibilities at the time the suggestion is submitted. Exempt and nonexempt job responsibilities are based on the suggester's job description and performance plan. You cannot receive an award for suggestions that are part of your own assigned duties and job responsibilities. This rule applies regardless of physical location at the time of submission. Ineligible suggesters do not become eligible for an award if their suggestion is used in another location or specific situation.
You are encouraged to contact your manager to have your eligibility determined at the time you submit your suggestion. This will eliminate the uncertainty of your eligibility status that is associated with the time required to complete the evaluation process.
Award eligibility for employees on approved leaves of absence, retirees (under the IBM Retirement Plan) and employees receiving benefits under the IBM Medical Disability Income Plan is based on their last active employment assignment. After they are away from their assignment for a period of six months, they have full eligibility.
Program managers are eligible to receive awards. All other managers and personnel assigned to the Suggestion Department are not eligible to receive awards.
1.3 Awards from $50 to $150,000
If all eligible conditions are met and your suggestion is adopted for implementation, it can earn you a cash award from $50 to $150,000. The actual amount is determined from a calculation of tangible savings or intangible value resulting from your suggestion during a set period of time after implementation.
You can earn two basic kinds of awards:
1. A tangible savings award is granted when the cash savings or cost avoidance can be determined or approximated from implementation of a suggestion.
2. An intangible award may be granted when the suggestion does not result in direct measurable savings to IBM, but improves safety, health or security, product quality or reliability (product quality or reliability refers to parts or processes that result in an improved product marketed by IBM), or external customer service.
1.4 How awards are calculated
Calculation of awards follows certain general rules and qualifications. Normally, awards are paid at the time of implementation. However, an award may be paid, provided implementation is expected to occur within 90 days of the award.
A tangible savings award payment is based on 25% of the first year's estimated net material and labor savings. If the award is $200 or more, it is reviewed automatically one year from the date of implementation to determine estimated second year net savings and any additional net savings from the first year's use. If applicable, the final award payment is based on 25% of the first year's actual net savings plus 25% of projected net savings for the second year less any previous award payment(s). The Plan does not provide for award payments based on second year actual savings.
Intangible suggestion awards are determined by factors such as seriousness, frequency and extent of the problem, creativity and effectiveness of the solution. Intangible awards are generally in the $50 to $100 range, but are not limited to $100. (The $150,000 maximum still applies.)
Awards for joint suggestions are determined by dividing the total award amount by the number of eligible participants. Only the eligible suggesters will receive their share of the total award. An idea developed or provided to the suggester(s) by any other person(s) considered ineligible should not be submitted and is not awardable.
Because of the large variety of suggestions received, these rules cannot cover every conceivable situation. The decision of the company shall be in its sole discretion and final, binding, and conclusive in all matters pertaining to awards calculations, including but not limited to the amount and calculations of the award and the time of payment.
1.5 How to submit a suggestion
An idea must be submitted on a signed IBM Suggestion Form to be eligible for evaluation. When you have an idea that you originated, you should submit it right away to the Suggestion Department serving your location. The forms are conveniently located at your site's bulletin boards. Your idea can only have value when you make it known and you are the first to submit the idea. If someone else had the same idea and sent it in before you, that suggester will have priority and your suggestion will not be eligible for an award. The priority date of a suggestion is established when it is date stamped upon receipt by the Suggestion Department.
If prior to submitting your suggestion, you have verbally discussed your idea with someone who could implement it, provide the date, name and location, on a Suggestion Form, of the responsible person contacted. Additionally, you must submit a signed Suggestion Form within 30 days of the verbal disclosure to establish the disclosure date as your priority date. Otherwise, your priority date will be the date stamped upon receipt by the Suggestion Department, and your suggestion may not be eligible for an award.
When writing your suggestion, be specific, clear and concise. A suggestion should apply to a specific situation and location. Be sure to define the problem, state the solution in detail, and indicate the expected benefit to IBM. Submissions lacking any of these three areas will not be accepted for evaluation and will be returned to the suggester for further information, possible affecting the priority date of the suggestion.
Plan your approach. Make some notes, even a draft, before you fill out the form. Include form numbers, part numbers, areas affected, sketches, drawings or samples of proposed improvements whenever possible. Include all required information so the form will not be returned to you for completion, and remember, you can only submit one problem and its solution per form.
Emphasize why the suggestion should be adopted. This may not always be obvious to the evaluator. You increase the possibility of having your idea adopted when the evaluator has a real understanding of what you are trying to accomplish.
Your manager can be helpful in assisting you to develop your suggestion. You are encouraged to seek management review of your suggestion prior to submission.
Make sure you read and understand the "Agreement Section" before signing the Suggestion Form. If more than one employee is submitting the suggestion, all must sign the form.
If the suggestion involves safety, health or security, inform your manager of the solution at once. If your suggestion restores, replaces or repairs something to its original condition, it will not be eligible for submission. If it qualifies for safety, health or security evaluation your manager must sign your Suggestion Form prior to submission. You should also refer to the verbal disclosure guidelines in this section.
1.6 Tips on developing ideas
When writing a suggestion, it helps to ask yourself some basic questions such as those listed below. Of course, you need not confine your thinking
to the list. The company wants your suggestions, no matter how simple or complicated, on how to do IBM work easier, quicker and better.
How can you or IBM:
1.7 What kinds of ideas can earn awards
It's important to know what makes a "good" suggestion; otherwise, you could waste your time and that of people evaluating your idea. The idea need not be complex. The key is value to IBM an idea of value that is cost justified to implement. The idea must be accepted for evaluation and result in direct cost savings or other intangible value to IBM as defined by the provisions of the Plan.
In other words, provide a "better way." The emphasis is on a specific solution to a specific problem.
A generalization like "Production would be improved with better lighting" does not make a suggestion eligible for award consideration. Specifics like "Put cooling filters replaced during product preventative maintenance in one package, instead of two' or "Send. envelopes to branch offices from the distribution center via internal mail instead of consolidated postage shipments" make a suggestion eligible for award consideration.IBM wants you to suggest a specific operation, process, method or practice that will tangibly or intangibly improve the business. Your suggestion must be timely, practical and adoptable based on known technology and conditions at the time of submission. In addition, IBM must have the ability to make the suggested change without having to solve some other problem first.
1.8 What subjects to avoid
The basic intent of the Suggestion Plan is to award ideas that cause action resulting in savings or intangible value to IBM. To receive an award, all eligibility requirements must be met.
The following guidelines describe:
Some subjects do not qualify for award consideration under any conditions. These subjects pertain to ideas which do not result in savings or intangible value to IBM or ideas that do not relate to IBM. Examples are:
Any suggested change that does not result in tangible savings or meet the intangible award criteria is not eligible for an award. That means you should avoid suggestions concerning:
Examples that normally fall in this category: increases or decreases in staffing, compensation, revenue, prices, use or sale of IBM products advertising, facilities (parking lots), reimbursement, employee benefits, awards, recreation facilities, IBM Club activities, cafeterias, and vending machines, unless they meet the savings or safety, health or security requirements of the Plan.
In order for a suggestion to be awarded under the Plan, it should provide the earliest statement of the specific problem and solution to IBM. In other words, a suggestion is not eligible for an award under the Plan unless it is the first suggestion containing the solution used by IBM.
Suggestions can be predated by the following situations:
Suggestions submitted regarding subjects in the maturing process are normally not awarded under the IBM Suggestion Plan. Ideas in the "maturing process" refer to aspects of the business that for a specific period of time are in a constant state of change. Some examples are:
In these cases, management reserves the opportunity to apply known technology and make obvious improvements. Only in situations where management determines that an action was taken solely as a result of a suggestion can an award be granted under the Plan. If you have any questions regarding subjects that may be in the maturing process, please contact your manager or the Suggestion Department.
1.9 What happens to your suggestion
1. Suggestion - You develop an idea and submit it on a suggestion form or on line. You are encouraged to review your idea with your manager.
2. Suggestion Department Processing - Your suggestion goes to the Suggestion Department serving your location. It is then date stamped, and it is assigned a suggestion number. However, if your suggestion is incomplete (e.g. missing a signature, etc.), it will be returned to you for additional information and will not be assigned a priority date. Within 10 working days of the receipt of your valid suggestion in the Suggestion Department an acknowledgement will be sent to you, referencing the number of your suggestion. This suggestion number is important. You must refer to it in all communications with the Suggestion Department. Your suggestion has an active life of two years from the stamped date, which establishes the priority date of your idea.
3. Evaluation - The suggestion is forwarded for evaluation to the area that would be responsible for implementation if the idea is adopted. The responsible area recommends implementation or non-adoption of the idea based on their evaluation and forwards this recommendation to the Suggestion Department.
4. Suggestion Department Processing - (A) Suggestions are checked against other active suggestions for award eligibility. If your idea is predated, you will not be eligible for an award and the Suggestion Department will advise you of this fact in writing. (B) An employee's eligibility is determined by IBM management. If all eligibility criteria have been met and the suggestion is to be implemented, an award is calculated based on tangible savings or intangible value to IBM. If your suggestion receives an award, your manager will notify you. If your idea is not implemented or is not eligible for an award, you will be provided with a written explanation.
1.10 What about reevaluation
If your suggestion was not adopted, but you have further information to support it, you may request that the suggestion be reevaluated. Submit your request on a new Suggestion Form and explain why you believe your original idea merits further consideration by providing additional information. Reference the original suggestion number and indicate "Reevaluation Requested" on the top of the form.
A reevaluation request does not extend the two-year active life of your suggestion. Moreover, you cannot alter your original suggestion. Different problems and/or solutions must be submitted as new suggestions.
Retired IBMers and those on the IBM Medical Disability Income Plan have reevaluation rights, but former employees do not.
1.11 Extensions are possible
If your idea is not adopted and you feel your suggestion still has merit, you may request an extension. If, however, your suggestions were determined to be "not timely" when the idea was originally evaluated, it will not be eligible for an award at a later date unless it is clearly evident that your suggestion could have caused action at the time of submission. "Timely" means that the suggestion must be implementable without IBM having to solve some other problem first. Therefore, you should only consider extending your suggestion when you require additional time to develop and communicate positions supporting the adoption of your idea.
An extension request must be date stamped by the Suggestion Department before your current expiration date is reached. Any request for extension received after the expiration date will be treated as a new idea and assigned a priority date as of the date stamped.
Within 60 days prior to the expiration date of your suggestion, fill out a new Suggestion Form, referring to the most recent suggestion number assigned, and request that its active life be extended two more years. Briefly summarize the idea from the original form and write the words "Request for Extension" on the new form.
A new number will be assigned and you will receive an acknowledgement. Your suggestion will have a new two year life (while retaining the original priority date). When the request provides new reasons for reconsidering the suggestion, a complete new evaluation will be conducted.
It is your responsibility to extend the active life of your suggestion. Requests for extensions received on suggestions that have expired will be considered as new suggestions. And, remember, if the problem and/or solution is different in any way from the original suggestion, it must be submitted as a new suggestion.
Retired IBMers and those on IBM Medical Disability Income Plan have extension rights, but former employees do not.
1.12 Some general considerations
A suggestion that does not offer a specific solution may not be accepted for evaluation and may be returned to the submitter for a complete solution. IBM is not responsible or liable for developing alternate solutions if it does not adopt the solution contained in the suggestion.
It does take time to give your suggestion proper consideration. On the average, suggestions are answered in 30-60 days, but some take longer to thoroughly evaluate. It is not always possible to determine immediately whether a suggestion or suggester is eligible under the Plan. IBM must make that determination in its sole discretion.
No action which IBM takes, including implementation of an identical or similar solution, shall be deemed to constitute an agreement to pay for a suggestion. Independent conversations and agreements not consistent with the terms of the Plan are not binding on the company.
Suggestions will be evaluated for use at the location to which the suggestion specifically applies. IBM is not obligated to submit suggestions to any other locations or to all locations. Suggestions implemented at one IBM location may, at the sole discretion of the Suggestion Department, be forwarded to other locations for evaluation. if an idea is referred to another location for extended application within the first Y-ear after initial implementation, an additional award may be granted. In no event will the total amount awarded for a suggestion exceed $150,000.
At times, similar ideas are adopted at locations to which the suggestion was not submitted or directed by the Suggestion Department. In these situations, only the suggestions specific to that location will be considered for an award. In no event will the total amount awarded for a suggestion exceed $150,000.
When a suggestion is considered to be of substantial assistance in bringing about an improvement but does not provide the specific solution actually implemented, an award may be granted based on individual consideration. A decision to grant an award of this kind will be based on IBM's sole judgment and IBM's decision will be final, binding and conclusive. Such an award will not be subject to the awards provisions of this booklet. An award of this kind, however, will not be less than the Plan minimum or more than the maximum.
There may be times when an idea is adopted but there are not tangible savings, nor does it have an intangible value as described in the provisions of the Plan. When this situation occurs, the idea is not eligible for an award.
IBM is required to withhold taxes from awards paid under this Plan.
Awards payable to employees now deceased will be paid to the legal representative of the suggester's estate.
No interest will be paid on suggestion awards and IBM assumes no responsibility for not implementing or giving extended application to a suggestion.
The processing of a suggestion or payment of an award under the IBM Suggestion Plan shall not be deemed a waiver of, or in any way affect, any rights which the company may have to the subject matter of the suggestion according to law or under the Employee Confidential Information and Invention or Intellectual Property Agreement.
It is the suggester's responsibility to protect the patent or other rights if the company does not own such rights to the suggestion. If you believe that your idea is patentable, you may submit it to both the Suggestion and Patent Departments for consideration. A photo copy of the patent disclosure which you send to the IBM Patent Department should be attached to the Suggestion Form, referencing that disclosure for the description of the idea. You must also indicate on the Suggestion Form that the invention disclosure has been sent to the Patent Department.
By submitting a suggestion for review and possible award, the suggester waives any right to compensation for use of the suggestion except under the terms of the IBM Suggestion Plan.
The suggester grants to IBM, from the date the suggestion is received by the Suggestion Department,, an irrevocable., nonexclusive, unrestricted and royalty free license and right to sublicense, throughout the world, to make, have made, use, have used, lease or sell the subject matter of the suggestion.Suggestions are governed by the terms of the IBM Suggestion Plan in effect on the date they are received.
However, IBM reserves the right to change the Plan at its discretion and without prior notice. Any decision of the company concerning the terms or administration of the Plan, including the eligibility of suggestions and suggesters, and the amount of any awards made shall be final, binding and conclusive, and is within its sole discretion.The IBM Suggestion Plan is a cash award program established to recognize employees for their ideas that improve the business
; therefore, to facilitate communications, it is appropriate that the suggester be identified when submitting a suggestion. However, in unique situations if the suggester prefers to remain anonymous, the Suggestion Department Manager should be contacted.1.13 Suggestion Plan Quotes
A thought is often original, though you have uttered it a hundred times.
Oliver Wendell Holmes
Ideas won't keep. Something must be done about them.
Alfred North Whitehead
The thoughts that come often unsought and, as it were, drop into the mind are the most valuable of any we have, and therefore should be secured, because they seldom return again.
John Locke
It is the lone worker who makes the first advance in a subject. The details may be worked out by a team, but the prime idea is due to the enterprise, thought and perception of an individual.
Sir Alexander Fleming
To make ideas effective, we must be able to fire them off. We must put them into action.
Virginia Woolf
A single idea, if it is right, saves us the labor of an infinity of experiences.
Jacques Maritain
Ideas move fast when their time has come.
Carolyn Heibrun