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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
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
outsourced to India.