A Management Parable

Rowed and Track (the management kind)

Once upon a time, an American company and a Japanese company agreed to have a boat race on the river. Both teams practiced long and hard to reach their peak performance level. On the big day each team felt as ready as they could be. The Japanese won by a mile!!!

What was the problem?

Afterwards, the American team became very discouraged by the loss. Morale sagged. Corporate management decided that the reason for the crushing defeat had to be found. A performance improvement process (PIP) team was appointed to investigate the problem and recommend appropriate corrective action.

Their conclusion: The problem was that the Japanese team had eight people rowing and one person steering, whereas the American team had one person rowing and eight people steering.

The American company steering committee immediately hired a consulting firm to do a study on the management structure. After some time and millions of dollars the consulting firm concluded that "Too many people were steering and not enough rowing."

To prevent losing to the Japanese again the next year, the team's management structure was totally reorganized to include four steering managers, three area steering managers, one staff steering manager, and a new performance system for the person rowing the boat to give him more incentive to work harder. "We must give him empowerment and enrichment. That ought to do it."

The next year, the Japanese won by TWO miles!!!

Humiliated, the American company laid off the rower for poor performance, sold all the paddles, cancelled all capital investments for new equipment, halted development of a new canoe, gave a "high performance" award to the consulting firm, and distributed the money saved as bonuses to the senior executives.