Date:         Fri, 22 Jun 2007 14:15:31 -0600
Reply-To:     don spence <dkspence@TELUS.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         don spence <dkspence@TELUS.NET>
Subject:      Re: What is it with the US?  (No real van content)
In-Reply-To:  <20070622174843.D9NV5WNT44@priv-edtnaa12.telusplanet.net>
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Lessons for our overcompensated executives in this country?

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 before the race to reach their peak
performance. 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 8 people steering and 1
person rowing. Feeling a deeper study was required, 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, 3 area steering
superintendents and 1 assistant superintendent steering manager. They
also implemented a new performance system that would give the one
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
cancelled 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 out-sourced to India.

In a related vein, here's something else to think about:
Ford has spent the last thirty years moving 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 made 4 billion in profits
while Ford racked up 9 billion in losses. The Ford folks are still
scratching their heads.