A modern parable

[Rookie]

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 is 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 supervisors, and 1 assistant superintendant 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 'Rowing Team Quality First Program,' with meeting, dinners, and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, and 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 and the rest was given to Senior Executives as bonuses.

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 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 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 makes 4 billion in profits while Ford racked up 9 billion in losses.

Top executives are still scratching their heads and collecting bonuses...

[4sarge]

Originally Posted by Rookie

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 is 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 supervisors, and 1 assistant superintendant 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 'Rowing Team Quality First Program,' with meeting, dinners, and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, and 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 and the rest was given to Senior Executives as bonuses.

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 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 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 makes 4 billion in profits while Ford racked up 9 billion in losses.

Top executives are still scratching their heads and collecting bonuses...

Priceless but True - rep added

[Bigum1969]

We've got Toyota down here in SW Indiana. They employ more than 4,000 folks who make good money without a union. Go figure.

[Vigilant]

Originally Posted by Bigum1969

We've got Toyota down here in SW Indiana. They employ more than 4,000 folks who make good money without a union. Go figure.

Ya but them poor S.O.B.'s have to actually work the WHOLE shift! And, get this, SOME even have to do MORE than ONE job!!

[Pami]

I saw this about six years ago without the company names in it, but it's the same story. I forwarded it on to my dad, who had just started his own company.

His company was founded because another large company had bought up the company he worked for under assurances that they would not close the Indianapolis office, and a year later, they closed the Indianapolis office. Finding a hole in a very niche market, Dad and some of his colleagues from the former company started their new business.

What made me laugh so hard at this parable was that it was the epitome of Dad's previous employer. They would decide they were going to move the offices around in the building (they had four floors at the Bank One tower), so they would plan a meeting to discuss the changes that were being made. But before they could have that meeting, they had to have a planning meeting to plan the changes that were being made. But before they could do that, they had to have another planning meeting to outline the plans they needed to make in the next meeting. You see where this is going, right?

My dad thought the parable was just as funny as I did, so he forwarded it on to his new business partners.

They didn't even smile. /sigh

Oh.. PS to this story. The company Dad worked for that got bought out.. ? A few years later, the major principles from the original office finally got so fed up with their new employers that they bought themselves back out, and now contract some small amount of work through my dad's company.

It's all about the karma.

[rhino]

GM and Ford would be profitable overall if they eliminated their domestic production and sales. They do very well overseas, which is the only reason they've remained in business for the last couple of decades.

Ironic, eh?

[indytechnerd]

We bought a new vehicle in July. Domestics were having deals all over the place, 0%, cash back, the whole nine yards. Toyota and Honda were having none of it. We stopped in at the Honda dealer since my wife loves their van and asked. The salesman said "we don't need to. We can't keep certain models in stock as it is." This basically assured us that the Japanese auto makers were doing something right, and didn't need gimmicks to sell their stuff. Now if I can just talk her into a new Tundra next summer!

[Blaze261]

Good one. Wifes on her third Toyota now. Great vehicles. If only my jeep would run as good.

[melensdad]

Respectfully to all the folks who think this parable is accurate, I suggest it is bull****.

Or at least partially so.

Our US car makers are hampered by a lot of things that congress does. Now I'm not saying that US car makers are perfect, because I think they are far from it and none of my vehicles are US made. But if you look at the CAFE rules for fleets, and you look at the US made 'hybrids' you will see that our Congress passed some bizarre regulations that encourage the US makers to build HUGE trucks and SUVs with hybrid engines. That is why we have Escalade hybrids instead of Cobalt hybrids.

Then take a look at the 'pension' plans that our US auto makers are buried under. Those cost something like $1000 per vehicle sold to maintain. Toyota, Hyundai, Honda, Nissan, etc don't have that same burden so right off the bat, foreign cars have a major price advantage, even if they are built here in the USA.

Yes, our auto makers are idiots, they should have been producing small cars for years, should also be looking at CNG and other fuels. But again, Congress essentially mandates E-85 as the alternative and that is idiotic. Want to blame the problems of our auto industry on the executives and I will suggest that our executives are stuck between a rock & a hard place with the shackles of the unions and the idiocy of Congressional mandates.

Just my $0.02

[Seancass]

I can aggree with melensdad in that automotive-related laws make even less sence than gun laws. But, these companyies are failing because they earned it.

Being an engineer 1 week from graduation with no job, yes this hits home.