Modern Management Thinking: 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 team 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 team had 8 people rowing and 1 person steering, while the
American team had 8 people steering and 1 person rowing.

So American management hired a consulting company and paid them a
large amount of money for a second opinion.

They advised that too many people were steering the boat, while not
enough people were rowing.

To prevent another loss to the Japanese, the American's 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 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 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 outsource to India!!!!
--

Scott in Florida

"Scott in Florida" <MoveOn@outa.here> wrote in message
news:imuk22l7sgi73fj398n7801h7i352sj11k@4ax.com...[color=blue]
>
>
> 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 team 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 team had 8 people rowing and 1 person steering, while the
> American team had 8 people steering and 1 person rowing.
>
> So American management hired a consulting company and paid them a
> large amount of money for a second opinion.
>
> They advised that too many people were steering the boat, while not
> enough people were rowing.
>
> To prevent another loss to the Japanese, the American's 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 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 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 outsource to India!!!!
> --
>
> Scott in Florida[/color]

OUTSTANDING! That manner of thinking is why GM is headed for bankruptcy. I
don't think GM could think outside the box to save their souls (if they even
have souls).

I did not know Toyota was outsourcing to India, from what I read all of
Toyotas newest plant were being built in China. ;)


mike hunt


"Scott in Florida" <MoveOn@outa.here> wrote in message
news:imuk22l7sgi73fj398n7801h7i352sj11k@4ax.com...[color=blue]
>
>
>
> The money saved was distributed to the Senior Executives as bonuses
> and the next year's racing team was outsource to India!!!!
> --
>
> Scott in Florida[/color]

> I did not know

There is much you do not know and still you keep blabbering pointlessly

On 29 Mar 2006 07:38:10 -0800, "Gosi" <gosinn@gmail.com> wrote:
[color=blue][color=green]
>> I did not know[/color]
>
>There is much you do not know and still you keep blabbering pointlessly[/color]

Most modern American industry has the "Too many Chiefs and not enough
Indians" mentality with thieves in the upper hierarchy.
--
Mr.E

However I do know what I read in Automotive News and the article said
nothing about India. It only mentioned the new Toyota plants being built in
China to make vehicles for export ;)

mike

[color=blue]
>I did not know Toyota was outsourcing to India, from what I read all of
>Toyotas newest plant were being built in China. ;)[/color]


"Gosi" <gosinn@gmail.com> wrote in message
news:1143646690.784689.277670@i40g2000cwc.googlegroups.com...[color=blue][color=green]
>> I did not know[/color]
>
> There is much you do not know and still you keep blabbering pointlessly
>[/color]