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Subject: A Modern Parable  email this discussion to a friend?

myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics 4 years ago

I received this email a few months ago, but in view of the current requests by the automakers for bailouts, it is even more applicable now!


A Japanese company (TOYOTA) and an American company (GENERAL
MOTORS) decided to have a canoe race on the Red 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 8 people steering
and 1 person rowing.


Feeling a deeper study was in 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, 3
area steering superintendents and 1 assistant superintendent
steering manager.


They also implemented a new performance system that would give
the 1 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 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.


Here's something else to think about: General Motors 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 General Motors racked up
9 billion in losses.


GENERAL MOTORS folks are still scratching their heads.


IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY!



 

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xfahctor (7623) response was accepted on 11/21/2008.
denotes best response, click it to go to the best response.
tags:  american automaker failures, bad business, investments, steering, structure
 
1. myLot reputation of 83/100. xfahctor (7623)   ranked 42 out of 3,986 in politics   4 years ago

Love it, hit it right on the head. The old addage, too many chiefsm not enough indians, or any number of other cliche's one can call upon for this, but this story does a pretty good job in itself. I wonder if someone thought about forwarding this to capitol hill for the congresional commitee to read to the reps from the auto companies now asking from money.


myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics  4 years ago

This is what InBev has discovered very quickly with Anheuser-Busch - I think the comment had to do with "If you're not making beer or you're not selling beer, then you're OVERHEAD!" From what I've read, they're already gutting their engineering and IT departments.

Due to union involvement, many unskilled workers employed by the major auto makers make upwards of $30/40 plus a very lucrative benefit and pension package. The CEO of GM makes $9M a year!

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2. myLot reputation of 82/100. spalladino (11857)   ranked 127 out of 3,986 in politics   4 years ago

I don't know how they can sit there in D.C., asking for the House Financial Services Committee for taxpayer money to bail them out with a straight face, when they flew in on one of their several private jets. I'm sure they're not staying at a Motel 6 while in town either. The airline industry managed to cut back and pull themsleves out of a financial crisis. I don't believe that American auto makers should be saved from their own bad business practices.


myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics  4 years ago

They had the technology to make fuel-efficient cars decades ago and chose not to use it - it wasn't in their best interest to use it. Some of the technology used decades ago actually resulted in better gas mileage than what we're getting today.

We own a 1975 Chevrolet 4-door dually pickup(a "Camper Special") that we purchased to pull a fifth-wheel camper with a 454 engine (basically a "gas guzzler!). We, however, get better mileage with our 1975 pickup than a friend of ours gets with his 2008 Chevrolet Silverado!

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3. myLot reputation of 48/100. MSV1313 (2239)   4 years ago

Toyota is much more an AMERICAN company now than any of the "big three" auto companies are. There is no good reason to bail out these incompetent fools. Let them go out of business and new, smarter and more innovative companies will spring up in their place. the argument that "Americans will lose jobs" if we allow these crooks to fail is a moot point since much of their manufacturing happens out of the USA and most of the American employees they have are just empty suits.


myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics  4 years ago

Toyota operates factories in the United States, but they are foreign owned. If the major three companies go under, that leaves more room for the foreign owned companies to take hold. These foreign companies prosper because they don't pay the high wages and benefits that GM, Ford and Chrysler have negotiated with the unions.

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4. myLot reputation of 48/100. MSV1313 (2239)   4 years ago

Glance over to the right on this page and see who one of the sponsors here are. LOL


myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics  4 years ago

That's hilarious!

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5. myLot reputation of 92/100. nanajanet (2933)   ranked 214 out of 3,986 in politics   4 years ago

Well, I think that you hit the nail right on the head!! LOL (although, it really isn't funny, is it?)

And they wonder why all of our manufacturing is also going overseas. People here want to work less for more pay and people overseas are just happy to work. They would be happy to work at McDonald's for the rate of pay that Americans get.


myLot reputation of 74/100. newtondak (2145)   ranked 278 out of 3,986 in politics  4 years ago

These companies just don't get it - you don't go begging to the government to bail you out with OUR tax dollars (flying into Washington in your private jet and staying in a posh hotel) and then fly home and have a big, expensive "retreat" for the "exceptional" top executives who got you in the financial bind you're in!


myLot reputation of 92/100. nanajanet (2933)   ranked 214 out of 3,986 in politics  4 years ago

Also, when other countries are being more innovative with more energy efficient autos, why buy American? I own a Subaru? Why? I have had cars from every American made company. They cannot touch this car. Make one that is as good, in America, by Americans, and I will buy it.

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