Since the days of Thomas Jefferson we have been debating whether it’s more powerful to have a strong central governing unit help us make informed decisions or to defend the right of individuals to choose for themselves. In 1830 we passed an amendment to the Constitution to protect the right of states to make decisions not specifically designated to the federal government.
It occurred to me that my business experience might be able to shed some light on this difference of opinion. In the sixties, I joined Sears who was the largest and most successful retailer in the world. Its sales were greater than the next three competitors combined. I chose the company partially because it was the text-book case for a decentralized company. Local store managers made most of the decisions concerning their store. They spent their days making sure they beat Penny’s and Wards in serving their customer’s needs and delivering the best products and service in town. Merchandising was done by local managers who were experts in the needs of their local customers. If a store wanted an item added to the assortment, the buying organization found it and it was made available.
In the seventies, the country was changing with complex social issues like civil rights and hiring practices becoming important. Sears was changing too. The new President was a lawyer not a merchant and the company became more risk adverse. Local management jobs were eliminated and many were created at the Chicago headquarters which was interestingly called Parent. There were so many experts, that the company had to build the world’s tallest building to house them all.
In the eighties and nineties the store organization continued to lose management jobs and the ability to make meaningful decisions. Managers were reduced to store-runners, and told to just follow the plan. “No value adding please.” Important decisions were made by subject matter experts who probably never stood behind the counter of a Sears store.
During the nineties I was part of an organization built to take orders for the catalog division. This front line organization was empowered to do whatever was required to serve the customer. They were not directed, but empowered. The results of their great work and feats of customer service was that the catalog was not only rewarded with customer patronage, but with literally thousands of customer letters of appreciation for the service delivered. This experience convinced me that the model of empowering employees was more successful than telling them what to do. I remain convinced that the secret to success is within the belief system of people. That is, people will be much more successful if they believe in the course of action they are taking.
Today Sears has all but vanished from the list of important retailers. I am often asked why this has occurred. The best answer I can offer is to respond that when an organization fails to excite its constituents’ or fails to meet their needs effectively; it begins to wither and die.
America is experiencing an administration which honestly believes that it has all the answers and that decisions should be made by subject matter experts who espouse the belief that one size fits all. It certainly feels like De ja vous to me.
This is not meant to be a political opinion, but rather a belief that in all things, including business and government, empowered people are the critical ingredient to success.
