The document discusses the importance of rethinking empowerment and creating a dynamic team through participative leadership, shared vision, and clear decision-making boundaries. It emphasizes that empowered employees lead to better customer satisfaction, accountability, and improved work processes. The insights from companies like Netflix and Ritz Carlton illustrate that defining roles and trust in employees can significantly enhance performance and organizational culture.

1. Rethinking Empowerment
to Create
a Dynamic Team
Greg Basham
Chief Executive Officer
Andrew Cheung
Client Relations Manager

2. Agenda
Our Credo & Beliefs
Creating an Environment of Empowerment
The Business Case
Making It Work
Netflix
“The task of a leader is to create conditions under which all followers
can realise their full human potential.” - Aristotle, 400 BC

3. Our Credo & Beliefs for Team Effectiveness
1. All have a story and narrative - How we integrate all the stories is critical to
achieving the vision.
2. Integrity, openness, trust and concern for the growth of people- It is not how
much you tell them you have it. It’s how much it is proved to them it is true.
3. A stakeholder view of the enterprise - It is more sustainable and potentially
more profitable.
4. Time and energy are scarce resources - Focus on strategic priorities.
5. Internal performance mirrors how external stakeholders are dealt with.
6.People understand and commit to changes they are a part of creating.
7. Building on strengths leads to faster and better progress.
8.Focus on operations and continuous improvement internally and externally.
9. Achievements, sharing credit, collaborating and allowing space for your staff to
grow build power, credibility and relationships.

4. Empowerment
Enabling people to take responsibility and ownership for:
• Satisfying their customers’ requirements
• Solving problems
• Continuously improving their work process
Participative Leadership
Leaders create the environment by:
• Creating a shared Vision
• Negotiating decision making boundaries
• Delegating decision making authority
• Providing information and resources
• Teaching and coaching
Employee Involvement
Partnership
Employees:
• Take responsibility for making decisions
• Accept accountability for the results of these decisions
“An individual without information cannot take responsibility; an individual who is given information
cannot help but take responsibility.” - Jan Carlzon, ex-SAS CEO

5. Satisfied and Loyal Customers
Make Decisions
Have
Responsibility
for Implementation
Accountability
for Outcomes
Solve Problems
Improve Work
Process
Empowered Employees & Teams
Engaged Self Managed Team

6. Command Consultative
Manager and
Employee
Consensus
Employee
Decision with
Manager Input
Employee
Decision
• Manager makes
decision with no
input
• Employees are
informed of the
decision after
the decision has
been made
• Manager asks
for input and
makes decision
• Work together to
make decisions
• Share decision-making
responsibility
• Agree to work to
consensus
• Employees
make decisions
with input from
manager
• Employees have
authority to
make decisions
within set
boundaries
• Employees
makes all
decisions
regarding work
processes
• Employees
make with
decision with no/
few boundaries
• Manager
informed after
decision made
Types of Decision Making
No Empowerment Full Empowerment

7. Setting Decision-Making Boundaries
Boundaries
need to be
negotiated
between the
manager and
work group
No Boundaries
“Do whatever you think is best
for the customer”
No Direction
No decision is a bad decision.
Clearly Defined
Boundaries
Customer satisfaction must be maintained
“Authority up to a certain dollar amount -
offer a free bottle of wine”
Clear direction
Good decisions with manager support
Other example?
Key: You cannot create an empowered environment unless
you first clearly define the boundaries for decision making.

8. Clearly Defined Boundaries
Set how much flexibility in when and how the job gets done
Give Staff a clear role in designing the structure of the work activities
Ensure they have the ability to respond to the unpredictable

9. Ritz Carlton Leadership Centre
It’s all about empowerment. The thing our guests are wowed
about is that every single employee
has US $2,000 per day per guest to delight OR make it right…
We are saying to our employees
WE TRUST YOU!
- Diane Oreck, Ritz Carlton Leadership Centre

11. The Business Case for Empowerment
1.People resist change that they are not part of creating.
2.Empowered teams and individuals create better outcomes.
3.People can function as individuals in more than one team at the same time.

12. Netflix is the world's leading Internet television network with
over 44 million members in more than 40 countries.
It is 124 slides, created by Netflix CEO Reed Hastings.
9,000,000 hits.
'The Most Important Document Ever
To Come Out Of The Silicon Valley'
- Sheryl Sandberg, COO, Facebook

13. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development

14. Manage Context, Not Control
The best managers figure out how to get great
outcomes by setting the appropriate context,
rather than by trying to control their people.

15. Manage Context, Not Control
• Strategy
• Metrics
• Assumptions
• Objectives
• Clearly-defined roles
• Knowledge of the stakes
• Transparency around decision-making
Key: High performers work better if they understand the context.

16. Good Context
• Link to company/ functional goals
• Relative priority (how important/ how time sensitive)
- Critical, or…
- Nice to have
• Level of precision & refinement
- No errors (credit cards handling), or…
- Pretty good/ can correct errors, or…
- Rough (experimental)
• Key stakeholders
• Key metrics/ definition of success

17. Hard Work
It’s not directly relevant.
It’s about effectiveness.
We don’t measure people by how many weekends
or nights they are in their cube.
We measure by how much, how quick,
and how well they get work done.

18. High Performers
• 2 times better in process work
• 10 times better in creative work
• Attract more new talent