One of the most famous examples of employee empowerment comes from The Ritz-Carlton.
Under former president Horst Schulze, employees were given the authority to spend up to $2,000 to create a memorable guest experience or resolve a guest problem without first seeking a manager’s approval.
It’s a great story. But I think sometimes there is too much focus on the $2,000.
The money gave employees a resource. What made the approach work was that employees were also trained, understood the organization’s service standards, and were trusted to exercise judgment.
In other words, employee empowerment isn’t a slogan. It’s a capability you have to build.
Empowerment Requires More Than Authority
Think about what someone needs before they can confidently act on behalf of a client.
Knowledge: Do they understand the technical aspects of their job?
Skills: Can they apply that knowledge effectively?
Role Clarity: Do they know what they own, what decisions they can make, and when they should escalate?
Vision: Do they understand the experience the firm wants to create for its clients?
Resources: Do they have the tools, technology, time, authority, and support necessary to act?
Take away any one of these and empowerment becomes more difficult.
Give someone knowledge and skills without role clarity, and they may hesitate. Give them clarity without vision, and they may complete the task without understanding the experience you are trying to create. Give them all four without resources or authority, and they still have to say, “Let me check with my manager.”
The Lesson for Financial Advisory Firms
You don’t need to give every employee $2,000.
But consider what happens when a client calls with a problem. Can the person who answers recognize what the client needs, determine what they can do, and take action?
That matters because every employee contributes to the client experience—even those who rarely interact directly with clients.
If you want your team to take greater ownership, be proactive, and create a remarkable client experience, don’t simply tell them to do it.
Give them the knowledge, skills, clarity, vision, and resources to make it possible.
Then give them the opportunity to use them.
Give your team what they need to deliver a remarkable client experience—schedule a call with AEP to get started
The Employee Training & Development Partner For Independent Financial Advisory Firms