297. The $40k Gamble: How Distributed Decision-Making Will Change Everything

Key Takeaways

• Toyota’s move to empower assembly line workers to stop production, costing $40,000 per minute, resulted in better quality control and innovation.
• Kodak’s failure to embrace distributed decision-making led to its downfall despite having early access to digital camera technology.
• Distributing decision-making boosts innovation, agility, and employee empowerment.

Actionable Insights

• Clearly define decision-making authority in areas like finance, strategy, people, partnerships, and process.
• Empower employees to make decisions and take ownership of their roles.

Leadership Challenge

• Evaluate where you can distribute decision-making in your organization to foster innovation and improve performance.

Final Thought

Empowerment fosters a culture of growth and adaptability, so start trusting your team with decisions.

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