A Modern Parable

Like any good parable, this applies to far more than the auto industry.

A Japanese company (Toyota) and an
American company (Ford 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 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 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, 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
incentive 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 canceled 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 USA, claiming they can't
make money paying American wages.

TOYOTA has spent the last thirty
years building more than a dozen
plants inside the USA. 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...

...and now wants the
Government to 'bail them out'.

**IF THIS WEREN'T SO TRUE, IT MIGHT
BE FUNNY*