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Management article
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Reference no. 93304
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1993

Abstract

Timothy Firnstahl, restaurateur, faced rising costs, inefficient management, and a recession. Firnstahl got the answer to his problem from Mikhail Gorbachev: slash the centralized command and liberate the company. In doing so, he would also transfer virtually all power and responsibility to his line managers. And after five months of intensive study and planning, he accomplished what he set out to do. He fired most of his corporate staff, empowered his restaurant managers with "100% Power and Responsibility," and undertook a massive promotion campaign.

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Abstract

Timothy Firnstahl, restaurateur, faced rising costs, inefficient management, and a recession. Firnstahl got the answer to his problem from Mikhail Gorbachev: slash the centralized command and liberate the company. In doing so, he would also transfer virtually all power and responsibility to his line managers. And after five months of intensive study and planning, he accomplished what he set out to do. He fired most of his corporate staff, empowered his restaurant managers with "100% Power and Responsibility," and undertook a massive promotion campaign.

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