One of the fundamental challenges facing human services organizations is ho
w to foster innovation by drawing on the experience, knowledge, and creativ
ity of staff members. However, innovative behavior is often hard to find in
bureaucratic organizations, and may even be discouraged. The author descri
bes a program designed to make it possible for staff to develop and test ou
t new ideas in the context of a large, public agency. The program involves
the creation of a special fund managed by staff that awards small grants in
response to staff initiated proposals. In the first three years, nearly $6
0,000 was awarded to 27 separate projects. The fund provides a potential me
chanism for empowering staff, addressing agency problems, and ultimately ch
anging the nature of the organization.