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By Ron Moore

Background and Introduction
During a recent meeting, a mid-level manager with a large petroleum company was asking my opinion about which manufacturing and industrial companies were the best in the world. My reply was that most large organizations had manufacturing plants that covered the spectrum ranging from very poor to excellent, but none that I had direct experience with stood out to me as being consistently excellent in their manufacturing practices across the board, that is, in most all plants. As part of that discussion, he also asked "How much autonomy do site managers have (in the organizations you've seen)?" I had to think for a moment, at which point I said, "They have very little financial autonomy, and nearly complete operational autonomy, a recipe for highly variable performance, and ultimately, failure." I'll explain my view.