2 .What are the key requirements in their consideration?
1. Empowering the lower level work force leads to employees who are accountable and partly responsible for how the company benefits and/or fails. This is advantageous because employees will realize how important they are to the core of the business as well as how they affect the firm's health. When people feel that they are trusted, they typically honor that trust and want to prove they are worthy of it. Putting some of the onus on lower level employees will lead to a higher level of performance in the work place because employees will have to analyze and make decisions on their own that influence quality and performance. Decentralization also helps to promote a leaner organizational structure that is able to work more effectively. This leads to what is known as "Six Sigma" which is all about doing more with less. Staff that can make decisions wisely for the benefit of the work place without costing the business time and resources to make those decisions is valuable. Perfect decisions may not always be made and mistakes may occur but employees will learn from their mistakes and evolve to become wiser, more skillful and more capable. An educated workforce is more effective than one that needs to be monitored constantly. Typically in a business, the operating level knows more about how to control the processes then the ones further away from the action. Empowering employees means challenging themselves which will often lead to them rising to the occasion (goal congruence). Empowering the lower level is about motivating employees to care about their jobs. Being able to see how what they do as lower level employees ultimately affects the overall well being of an organization encourages that hard work. Involving the lower levels of an organization promote unison between "top level" and "shop level" workers and harmonizes the entire workforce in order to achieve their goals as a whole.
2. Profit centers are powerful relative to cost centers because the best decisions are made when you are able to compare costs and benefits in the early stages of potential change rather than the delayed response from farther up the chain. Profit centers have more control over the inputs and processes therefore having more control over profit versus a revenue centre. Having control over those resources and monitoring control limits in order to produce products with a higher quality will only result in higher profits. (That is if it is deemed the customer will pay for that higher quality). The point is to give profit responsibility and power of decision making to those that possess the most relevant information to do so. Fairness and goal congruence is a major element of profit centers. We must ask ourselves if it is fair to those involved and if credit is given where it is due (promoting what really matters).

3. The case teaches us that relying only on financial measures is a poor indicator for future performance. Financial numbers and information take time to produce and in that time operations will be moving forward while lag increases. Its like driving blindly and stopping periodically to see how we did. Looking at historical performance is not an effective measure in determining future performance. In order to improve performance, we need information and feedback as quick as possible to steer us the right way. We need to know what we are doing wrong now, not when the processes are complete. As we travel down an organizations structure, the use of financial measures becomes less and less important and the use of non financial measures becomes key. Non financial measures like employee and customer satisfaction, quality, market share and product mix are all strong indicators for indicating performance. The bottom line is important but there are a variety of factors that contribute to an organizations overall success, not just the financial measures.
4. Its important to distinguish between controllable and non-controllable items when evaluating someone's performance because sometimes workers have no control. The 'Red Bead' experiment is a prime example of how some processes are merely left to chance. It isnt fair to push the blame on the worker if the system is flawed form the beginning. We need to be careful in categorizing the controllable with the non controllable because on the surface things may seem uncontrollable but in reality they can be controlled.