Corporate Reality

[Neon]

The Boat Race



Consolidated Boat America Inc. and the Japan Racing Boat Corp. decided to engage in a competitive boat race. Both teams practiced hard and long to reach their peak performance.  On the

big day they felt ready. The Japanese won by a mile. Afterward, the American  

team was discouraged by the loss. Morale sagged. Corporate management decided

that the reason for the crushing defeat had to be found, so a consulting firm

was hired to investigate the problem and recommended corrective action.  The

consultant's finding: The Japanese team had eight people rowing and one person steering; the American team had one person

rowing and eight people steering. After a year of study and millions spent

analyzing the problem, the consultant firm concluded that too many people

were steering and not enough were rowing on the American team. So as race day

neared again the following year, the American team's management  structure

was completely reorganized. The new structure: four steering managers, three

area steering managers and a new performance review system for the person

rowing the boat to provide work incentive. The next year, the  Japanese won

by two miles. Humiliated, the American corporation laid off the rower for

poor performance and gave each of the managers a bonus for discovering the

problem.



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