“An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.”
—Stephen R. Covey
3M (formerly known as the Minnesota Mining and Manufacturing Company), a diversified manufacturer with more than $30 billion in annual sales, has long had a reputation for empowering employees. To spur innovation, for example, 3M encourages members of its technical and engineering staff to spend 15 percent of their work time pursuing projects of their own choosing. At Google, up to 20 percent of each employee’s time can be spent on projects of his or her choosing.
Pixar’s delightful and wildly successful family films are created by a team of down-to-earth artists who believe in themselves. This is the secret of Pixar’s success. They build this culture by avoiding what they call “No, but…” This means that when someone suggests an idea, others should respond with “Yes, and…,” not “No, but…” This philosophy was brought to Pixar by the late Joe Ranft, their head of storytelling for many years. It derives from the concept that, as they say on campus, “Every idea is a good idea.” Pixar strives to create the most trusting environment possible for their employees, where people follow their own vision and are allowed to make mistakes.
Too often, decisions move up the management chain to people who have the least amount of knowledge to make the best decision. Big decisions shouldn’t always be made by management. Empower employees to make decisions that apply to their own groups and roles. In addition to speeding up decisions and helping shape current team members into future managers, this will also instill a sense of ownership throughout your team. At W. L. Gore & Associates, Inc., makers of GORE-TEX and other products, employees are encouraged to use a boating analogy—“above or below the waterline”—in making decisions. If a boat gets a hole above the waterline, it isn’t at risk of sinking; if the hole is below the waterline, it is in immediate danger. Likewise, employees are charged with considering the risk of all decisions they make; if the risk is great, they are asked to get broader assurances that it is the best decision prior to proceeding.
Texas Commerce Bank in Houston, Texas, used a slow period in the market as an opportunity to empower employees to improve both their internal processes and customer service. Focus groups were formed to identify and fix systemic problems that frustrated both employees and customers. For example, if tellers spent thirty seconds on one step in a process they had to do one hundred times per day, it added up to a significant cost. The bank gave the focus groups permission to tackle these problems and find solutions. At the onset, the company estimated that the teams’ efforts would net a total savings of $50 million, but, in fact, the resulting cost savings were double that amount.