Nortel and Cisco decided to have a canoe race on the Hudson River.
Both teams practiced long and hard to reach their peak performance
before the race. On the big day, Cisco won by a mile.
Nortel management decided that a reason for the crushing defeat had to
be found. A "Measurement Team" made up of senior management was
formed.
They would investigate and recommend appropriate action. They
concluded that Cisco had eight people rowing and one person steering ,
while Nortel had one person rowing and eight people steering. So
Nortel management hired a consulting company and paid them incredible
amounts of money. They advised that too many people were steering the
boat and not enough people were rowing.
To prevent losing to Cisco next year, the rowing team's management
structure was totally reorganized. There would be four steering
supervisors, three area steering superintendents and one assistant
superintendent steering manager. Nortel also implemented a new
performance system that would give the one rower a greater incentive
to work harder.
The "Rowing Team Quality First Program" had meetings, dinners and
included free pens for the rower. "We will give the rower empowerment
and enrichments through this quality program," management said.
Next year, Cisco won by two miles.
Humiliated, Nortel management laid off the rower for poor performance,
halted development of a new canoe, sold the paddles and cancelled all
capital investments for the new equipment. Then they gave a "High
Performance" award to the steering managers and distributed the rest
of the money they saved as bonuses to the senior executives.
Both teams practiced long and hard to reach their peak performance
before the race. On the big day, Cisco won by a mile.
Nortel management decided that a reason for the crushing defeat had to
be found. A "Measurement Team" made up of senior management was
formed.
They would investigate and recommend appropriate action. They
concluded that Cisco had eight people rowing and one person steering ,
while Nortel had one person rowing and eight people steering. So
Nortel management hired a consulting company and paid them incredible
amounts of money. They advised that too many people were steering the
boat and not enough people were rowing.
To prevent losing to Cisco next year, the rowing team's management
structure was totally reorganized. There would be four steering
supervisors, three area steering superintendents and one assistant
superintendent steering manager. Nortel also implemented a new
performance system that would give the one rower a greater incentive
to work harder.
The "Rowing Team Quality First Program" had meetings, dinners and
included free pens for the rower. "We will give the rower empowerment
and enrichments through this quality program," management said.
Next year, Cisco won by two miles.
Humiliated, Nortel management laid off the rower for poor performance,
halted development of a new canoe, sold the paddles and cancelled all
capital investments for the new equipment. Then they gave a "High
Performance" award to the steering managers and distributed the rest
of the money they saved as bonuses to the senior executives.
