FSTJACK
Full Access Member
Subject:Toyota vs Ford
A Modern Parable
A Japanese company (Toyota) and an American company (Ford) decided to
have a canoe race on Lake Erie. 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 such a crushing defeat. A management team made up of
senior executives was formed to look into the matter and recomme nd
appropriate action.
Their conclusion was the Japanese had eight people rowing and one
person steering, while the American team had eight people steering and
one person rowing.
Feeling a deeper study was in order, American management hired a
distinguished consulting firm and paid it a large amount of money for
a second opinion. The consultants, of course, advised 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 American team's management structure
was totally reorganized to four steering supervisors, three area
steering superintendents, one assistant superintendent steering
manager and one person rowing. They also implemented a new performance
system that would give the rower a greater incentive to work harder.
It was called the "Rowing Team Quality First Program,"
with meetings, dinners, free pens and a certificate of completion for
the rower. There was much spirited discussion regarding new paddles, a
redesigned canoe and extra vacation days and bonuses for practices
sessions.
The next year the Japanese won by two miles. Humiliated, American
management laid off the rower (a reduction in workforce) 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 out-sourced to India.
Sadly, . . . The End.
However sad, but oh so true, here's something else to think about:
Ford has spent the last thirty years moving its factories out of the
U.S., claiming it can't make money paying American wages.
Toyota has spent the last thirty years building more than a dozen
plants inside the U.S .
The last quarter's results: Toyota made 4 billion in profits while
Ford racked up 9 billion in losses.
Ford folks are still scratching their heads.
IF THIS WEREN'T SO SAD IT MIGHT BE FUNNY!
A Modern Parable
A Japanese company (Toyota) and an American company (Ford) decided to
have a canoe race on Lake Erie. 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 such a crushing defeat. A management team made up of
senior executives was formed to look into the matter and recomme nd
appropriate action.
Their conclusion was the Japanese had eight people rowing and one
person steering, while the American team had eight people steering and
one person rowing.
Feeling a deeper study was in order, American management hired a
distinguished consulting firm and paid it a large amount of money for
a second opinion. The consultants, of course, advised 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 American team's management structure
was totally reorganized to four steering supervisors, three area
steering superintendents, one assistant superintendent steering
manager and one person rowing. They also implemented a new performance
system that would give the rower a greater incentive to work harder.
It was called the "Rowing Team Quality First Program,"
with meetings, dinners, free pens and a certificate of completion for
the rower. There was much spirited discussion regarding new paddles, a
redesigned canoe and extra vacation days and bonuses for practices
sessions.
The next year the Japanese won by two miles. Humiliated, American
management laid off the rower (a reduction in workforce) 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 out-sourced to India.
Sadly, . . . The End.
However sad, but oh so true, here's something else to think about:
Ford has spent the last thirty years moving its factories out of the
U.S., claiming it can't make money paying American wages.
Toyota has spent the last thirty years building more than a dozen
plants inside the U.S .
The last quarter's results: Toyota made 4 billion in profits while
Ford racked up 9 billion in losses.
Ford folks are still scratching their heads.
IF THIS WEREN'T SO SAD IT MIGHT BE FUNNY!
