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USING CREATIVITY OF AMERICAN WORKERS WILL FIGHT RECESSION AND HELP U.S. GAIN WORLD MARKETS, XEROX CHAIRMAN SAYS

USING CREATIVITY OF AMERICAN WORKERS WILL FIGHT RECESSION AND HELP U.S.
 GAIN WORLD MARKETS, XEROX CHAIRMAN SAYS
 CHICAGO, May 29 /PRNewswire/ -- Winning in the battle against recession and gaining in the global marketplace calls for better use of the inherent competitive advantages of a creative American work force and American cultural values.
 That is what Paul A. Allaire, chairman and chief executive officer of Xerox Corporation (NYSE: XRX), told the Executives' Club of Chicago here today.
 Speaking on "The New Productivity: Using Quality to Enable Our People to Create Value," Allaire said that quality as currently defined is not enough.
 "If America is to remain strong and competitive in a global economy, we must use quality as a foundation. We must focus quality on a new kind of productivity, a productivity that unleashes the creativity and common sense of our people to create value for our customers and wealth for our nation."
 He said that although technological leadership, manufacturing muscle and quality goods and services are essential, "our future depends on our ability to motivate and lead our people to create a new kind of productivity."
 Allaire said the new productivity is unlike old productivity, which was built on volume, and current productivity, which adds value.
 In creating new organizations that build things, organizations that take little pieces and put them together, the key is in people, Allaire said.
 He advised his fellow executives to help their people "do what they can do, what they want to do, what they inherently know is the right thing to do. We must lead, set clear direction, provide the right training and tools -- and get out of the way!"
 Using Xerox as an example, Allaire said that there are at least five things the company is doing to keep growing and improving:
 -- Bust up the bureaucracy. Take layers out of management. Streamline processes. Improve clock-speed. Push decision-making, responsibility and accountability down to the people closest to the problems.
 -- Leverage diversity. Companies and the country cannot compete and succeed unless all people are productive. Diversity of race and religion, of gender and genius, of ideas and innovation are a competitive advantage. The whole is always greater than the sum of its parts, particularly when the parts are truly diverse.
 -- Build "communities of practice." These are small, entrepreneurial units with the capacity to manage themselves. Each individual and each team has the freedom to act, the security to be bold, the motivation to succeed, the opportunity to contribute.
 -- Build a learning organization. This is an environment in which learning is pervasive and second nature; failures are seen as opportunities to learn; successes are studied with an eye to improvement; new ideas are cherished, nurtured and implemented, and learning is defined as doing things differently.
 -- Enhance the use of information technology. People need the right information at the right time. They need to combine information with experience to act quickly and decisively.
 Allaire said these actions are new for American business and will be very difficult to achieve, but they will be even more difficult for foreign competitors.
 Speaking about the recession, the Xerox chairman said that while it has been long and has taken its toll, the glass is "at least half-full," not half-empty. In fact, he added, there are many reasons for optimism.
 "Yet, there's a veil of pessimism and caution across our nation. The American people inherently know that something is wrong. Although our opportunity is great, our people know we are adrift."
 The reason for this crisis of confidence, he said, is that the people know more than those who lead them.
 "They know that the end of this recession does not mean a return to the good old days. They know that our old ways of solving problems don't work anymore. They know that their leaders are burying their heads in the sand and not dealing with our issues openly and candidly. They know that our institutions -- our government, our schools, our corporations -- are failing them.
 "The American work force wants to be part of the solution, but sees no leadership. They know that in order to get back on track, we must do things differently. And, in order to do things differently, we must see things differently."
 One way to do that is to "grasp the new productivity that unleashes the power of people to create value," Allaire said. "Quality is an entry-card, but we must use quality, we must build on quality to move beyond quality."
 -0- 5/29/92
 /CONTACT: Judd Everhart of Xerox, 203-968-3572, or Julie Ann Bubolz of the Executives' Club, Chicago, 312-263-3500/
 (XRX) CO: Xerox Corporation ST: Connecticut, Illinois IN: SU:


TQ -- NY010 -- 5195 05/29/92 13:09 EDT
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Date:May 29, 1992
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