Empowerment encourages innovation because employees have the authority to try out new
ideas and make decisions that result in new ways of doing things. For example, in one
major consumer goods company, two engineers used their empowered status to design and
test a new household product. After spending over $25,000 on the project, they realized that
the product did not perform up to expectations. The design was faulty and performance was
poor. The next day the president of the company sent for both of them. When they entered
the executive office, they found they were guests of honor at a party. The president quickly
explained that he appreciated all their efforts and even though they were not successful, he
was sure they would be in the future. By encouraging their innovative efforts through
empowerment, the president helped ensure that these two employees would continue to
bring new ideas to the market. This climate for innovation is greatly facilitated by empowering
employees.