Organizing For The Future
Once upon a time, an American automobile company and a Japanese automobile company agreed to hold a series of competitive rowing races. Both teams practiced long and hard to reach their peak of performance. On the big day everyone was as ready as they could be.
The Japanese team won by a mile
The American team became discouraged and their morale sagged badly. Corporate Management was determined that the reason for this crushing defeat be found. A Continuous Measurable Improvement team of top executives was set up to investigate the problem and recommend corrective action. Their conclusion : The organization of the Japanese team was radically different from the American team. The Japanese had one person steering and eight people rowing whereas the American team had one person rowing and eight people steering. The American corporation's steering committee immediately hired a consulting firm to study the differences in the two types of organizations.
Some time, and lots of money, later the consulting firm concluded that; "Too many people are steering and not enough people are rowing." To prevent loosing to the Japanese again next year the organization of the American team was changed to four steering managers, three area steering managers, and one staff steering manager. A new performance system was designed for the rower to give him more incentive to work harder and become a six sigma performer. "We must give him empowerment and enrichment." to quote the steering committee.
The next year the Japanese team won by two miles.
The American automobile company laid off the rower for poor performance, sold the boat and paddles, canceled all capital spending for new equipment, and halted research on a new boat design. The money saved was distributed as bonuses to the senior management. The consulting company received an award for excellence.
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