Modern Parable

[punjabigyrl]

Subject: A Modern Parable Worth Reading






And then the American companies wonder why they
can't make a profit.............this is SO VERY true

A Japanese company (Toyota) and an American company
(General 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 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 outsourced to India.

Sadly, The End.

Here's something else to think about:

Ford has spent the last 30 years moving all
its factories out of the US, claiming they can't
make money paying American wages.

TOYOTA has spent the last 30 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.

Ford folks are still scratching their heads.

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

[Larry Gude (Premo)]

Originally Posted by punjabigyrl

Ford has spent the last 30 years moving all
its factories out of the US, claiming they can't
make money paying American wages.

TOYOTA has spent the last 30 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.

Ford folks are still scratching their heads.

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

...is a short and sweet and misleading summary. The goal of Toyota is to become the leading auto manufacturer in the world. Ford and GM and Chrysler long ago stopped being companies in any traditional sense and became institutions. If you look at their size and scope and all the moving parts, the unions, the interests of politicians and government, the attitude from top to bottom of being something other than a business, you see companies with inherent disadvantages over time vs. their global competitors.

Toyota does not have the legacy costs for retirement and health of people who are long gone from working. Toyota does not have the deep seated agreements as to how process's and manufacturing and supply chains work.
They come in fresh and clean and hit the ground running.

Ford is trying to leave the US to get out of all the factors and issues that keep them from being competitive. Toyota is happy to come in and save the transportation costs and their own legacy costs because they have none of the issues US manufacturers have.

If you think about it, Toyota is coming here for the same reason Ford is getting out.