A Modern Parable
A Japanese company, (Toyota), and an American company, (General Motors), decided to have a rowing race on the Potomac River in D.C. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile, in a 2K race. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A quality assessment team made up of senior management and union rowers 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 3 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance reward incentive system that would give the 1 person rowing the boat greater motivation to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens and water bottles for the rower. There was discussion of getting new oars, riggers, boats, and other equipment, extra vacation days for practices and bonuses. Several new outside coaches were also hired to advise the single rower.
The next year the Japanese won by two miles, also a 2K race. Humiliated, the American management fired the rower for poor performance, halted development of a new hull design, sold the oars, and canceled all future races and capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's rowing team was out-sourced to India .
Sadly, The End.
Here's something else to think about: General Motors 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.
TOYOTA makes 4 billion in profits while General Motors racked up 9 billion in losses
A Japanese company, (Toyota), and an American company, (General Motors), decided to have a rowing race on the Potomac River in D.C. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile, in a 2K race. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A quality assessment team made up of senior management and union rowers 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 3 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance reward incentive system that would give the 1 person rowing the boat greater motivation to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens and water bottles for the rower. There was discussion of getting new oars, riggers, boats, and other equipment, extra vacation days for practices and bonuses. Several new outside coaches were also hired to advise the single rower.
The next year the Japanese won by two miles, also a 2K race. Humiliated, the American management fired the rower for poor performance, halted development of a new hull design, sold the oars, and canceled all future races and capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's rowing team was out-sourced to India .
Sadly, The End.
Here's something else to think about: General Motors 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.
TOYOTA makes 4 billion in profits while General Motors racked up 9 billion in losses
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