Abstract
From near-bankruptcy in 1987, Texaco Inc.—one of the largest companies in the world—has experienced a rapid return to profitability. Texaco's turnaround is attributed at least in part to Total Quality Management and a dramatic change in corporate culture that has led to empowerment of the workforce. This case study focuses on empowerment, describes the change that has taken place over the last five years and in particular examines the Information Technology (IT) Division. Within this division 131 “natural work groups” form the core of a team approach that embodies new responsibilities, authorities and team processes. People and quality have been emphasized and a process of continuous improvement has commenced. These changes reflect significant empowerment of the workforce. As a result there is tangible evidence of success both in regard to the efficiency and effectiveness of IT services. IT personnel feel good about the quality of their output and user satisfaction is high. Texaco's IT Division has been cited both internally and externally for its exemplary and world-class performance in quality through team empowerment. The case concludes with lessons that other corporations might learn from the Texaco experience.
Published Version
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