A Modern Parable
A Japanese company (Toyota) and an American company (General Motors) decided
to have a canoe race on the Missouri River. Both teams practiced long and
hard to reach their peak performance before the race. On the big day, the
Japanese won by a mile. The Americans, very discouraged and depressed,
decided to investigate the reason for the crushing defeat.
A management team made up of senior management was formed to investigate and
recommend appropriate action. Their conclusion was the Japanese had 8 people
rowing and 1 person steering, while the American team had 8 people steering
and 1 person rowing.
Feeling a deeper study was in order, American management hired a consulting
company and paid them a large amount of money for a second opinion. They
advised, of course, that too many people were steering the boat, while not
enough people were rowing. Not sure of how to utilize that information, but
wanting to prevent another loss to the Japanese, the rowing team's
management structure was totally reorganized to 4 steering supervisors, 3
area steering superintendents and 1 assistant superintendent steering
manager. They also implemented a new performance system that would give the
1 person rowing the boat greater incentive to work harder. It was called the
Rowing Team Quality First Program, with meetings, dinners and free pens and
a certificate of completion for the rower. There was discussion of getting
new paddles, canoes and other equipment, extra vacation days for practices
and bonuses.
The next year the Japanese won by two miles. Humiliated, the American
management laid off the rower (a reduction in workforce) for poor
performance, halted development of a new canoe, sold the paddles, and
canceled all capital investments for new equipment. The money saved was
distributed to the Senior Executives as bonuses and the next year's racing
team was "out-sourced" to India .Sadly, the End. However, sad, but oh so
true!
Here's something else to think about: Ford has spent the last thirty years
moving all its factories out of the US, claiming they can't make money
paying American wages. Toyota has spent the last thirty years building more
than a dozen plants inside the US .The last quarter's results: Toyota makes
4 billion in profits while Ford racked up 9 billion in losses. Ford folks
are still scratching their heads.
IF THIS WEREN'T SO SAD IT MIGHT BE FUNNY!
