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The Challenge: Pursuing an Elusive Empowered Culture
For years, Xerox aimed to "unleash" the full potential of its employees through empowerment. The objective was to create Empowered Work Groups (EWGs)—self-managing, entrepreneurial teams that could respond to customer needs with greater speed and creativity. The company understood that an empowered workforce leads to higher customer satisfaction and, ultimately, increased profits. However, despite this long-stated goal, the empowered culture remained more of a fantasy than a reality.
As Xerox shifted its focus to the competitive digital market, the need for a new, more flexible work model became urgent. The existing system was hindered by several factors:
- Limited Program Integration: Stand-alone initiatives were not linked, creating silos.
- Inflexible Work Design: A "one size fits all" approach slowed response times.
- Controlling HR Practices: Policies focused on individuals, which inhibited teamwork.
- Ambiguous Requirements: A lack of clear boundaries led to employee confusion.
These issues stifled employee motivation and prevented the company from delivering the value customers demanded. It became clear that a new, committed initiative was necessary to finally achieve the empowered workplace Xerox had been searching for.
Diagnosis: Uncovering the Barriers to Empowerment
To understand why progress had stalled, Xerox conducted a thorough business assessment in 1994, using internal surveys and external consultants. The findings were clear: the primary obstacle was leadership.
Key Assessment Findings
The assessment revealed a significant disconnect between management's words and actions:
- Lack of Leadership Accountability: Senior managers were "talking the talk" but not "walking the walk." They delegated empowerment issues to staff instead of leading the charge.
- No Shared Vision: Without a cohesive vision from the top, employees were confused about the direction and failed to act proactively.
- Resistance to Delegating Authority: Management remained hesitant to distribute decision-making power throughout the organization.
Studies confirmed a direct link between an empowering management style, employee satisfaction, and customer satisfaction. The assessment showed that less than half of Xerox employees felt empowered. The responsibility for this failure rested with the company's leadership.
Designing the Transformation: The "High Performance Work Systems Vision 2000"
Armed with these insights, Xerox developed "High Performance Work Systems Vision 2000" to serve as the blueprint for its change management initiative. A Design Team with members from all organizational levels was created to guide the implementation.
The plan focused on changing how the business was managed. The core steps for the management team were:
- Document and communicate a clear direction regarding EWGs.
- Develop a plan for personal involvement to champion the change.
- Commit to their own education to drive the required culture shift.
- Create productive tension in the system to accelerate the change.
Education and Communication Plans
Two pillars were essential for success: education and communication.
- Education Plan: Extensive training was required to define new roles for both managers and employees. The curriculum used simulations and practice to teach skills in change management, situational leadership, group dynamics, and Total Quality Management (TQM).
- Communication Plan: To get everyone on board, leaders were required to keep all employees informed about the organization's direction and progress. Frequent meetings, emails, and reports were used to create a sense of shared ownership among all employees.
Sustaining Momentum: Support Systems for an Empowered Workplace
To ensure the changes took root, Xerox implemented several on-the-job support structures that translated the vision into daily practice.
Post-Implementation Surveys
Surveys measuring employee motivation, satisfaction, and perceptions of empowerment were administered before the initiative and then on an ongoing basis to track progress and make necessary adjustments.
Shared Solutions and Best Practices
Systems were created to help teams share solutions and best practices. Online databases like "Eureka!" allowed employees across the company to access proven solutions, improving efficiency and problem resolution.
Reward and Recognition Programs
A new reward system was installed to reinforce the desired behaviors. It recognized individuals who contributed to team performance and rewarded entire teams based on their results, linking their work directly to organizational performance.
Documented Work Processes
Managers formalized and documented core work processes, particularly those impacting customer satisfaction. This provided teams with a consistent framework, enabled the distribution of decision-making authority, and created a benchmark for continuous improvement.
The Results: A "Sea Change" in Culture and Performance
The implementation of EWGs required a significant cultural shift and was not without challenges. However, the results demonstrated the profound impact of the initiative.
Post-implementation assessments revealed:
- Greater understanding of the organization's vision and direction.
- Significantly improved levels of decision-making authority for individuals and groups.
- A large increase in the employee perception of empowerment.
The ultimate test was customer satisfaction, which improved significantly. As EWGs became more effective, customer satisfaction ratings rose by approximately 15% compared to pre-implementation levels.
While some survey results indicated that leadership support could still be improved, the overall transformation was a success. Xerox became a benchmark for employee empowerment, shifting its management culture from one of top-down control to one of participative leadership. Managers became coaches who provided a clear vision, and empowered teams took ownership of their work, delighting customers and driving business results. '''