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PKF Texas – The Entrepreneur’s Playbook: Success Depends on Enablement

by | Mar 21, 2008 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.

Want to outdistance your competition? Then give your people the information technology tools, infrastructure, and support they need to do their jobs well.

That is the main message from a July 2007 study of more than 1,300 business executives at companies in North America, Europe, and Asia-Pacific. The study sponsored by Microsoft Corporation and conducted by the Economist Intelligence Unit (EIU), examines the effects of "people enablement" from several angles.

Among the conclusions the study reaches are:

  • The more a company empowers its employees to make decisions, the more likely it is to perform better financially and competitively.
  • True enablers use technology to improve collaboration, encourage risk-taking, and optimize decision-making.
  • Companies categorizing themselves as "true enablers" are three times more likely to be more profitable than their competitors.
  • Compared with other types of firms, companies described as "true enablers" have a higher proportion that are more profitable than their competitors.

The study clearly shows that there is a positive correlation between a higher degree of enablement and corporate performance.

What Does "Enabled" Mean?Enablement refers to the organizational structures, informational technologies, and other resources that make it possible for employees to make decisions.

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