Topic: A Modern Parable:
warmachine's photo
Tue 12/02/08 01:42 PM
A Modern Parable:

A Japanese company (Toyota) and an American company (Ford Motor) 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 7 people steering and 2 people
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 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, 2 area steering superintendents
and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2
people rowing the boat greater incentives to work harder. It was called
the 'Rowing Team Quality First Program,' with meetings, dinners and free
pens for the rowers. There was discussion of getting new paddles, canoes
and other equipment, extra vacation days for practices and bonuses. The
pension program was trimmed to 'equal the competition' and some of the
resultant savings were channeled into morale boosting programs and
teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development
of a new canoe, sold all the paddles, and cancelled all capital
investments for new equipment. The money saved was distributed to the
Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to
even finish the race (having no paddles,) so he was laid off for
unacceptable performance, all canoe equipment was sold and the next year's
racing team was out-sourced to India .

Sadly, the End.

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, and collecting bonuses...