The Race!The Race!

A simple A simple storystory about a about a racerace, ,

A mirror on A mirror on business

And perhaps something to And perhaps something to AVOID AVOID doingdoing

Some time ago, a boat raceSome time ago, a boat race waswas organized between two competing organized between two competing organizations. One was a Swiss company – organizations. One was a Swiss company – let’s name it let’s name it Cow Co. Ltd,Cow Co. Ltd, and the other and the other

one was one was SempumaSempuma from Malaysiafrom Malaysia

• Both teams worked Both teams worked very hard to get to very hard to get to top leveltop level

• When the day When the day finally came where finally came where they could they could measure their measure their strength, both strength, both were very were very optimisticoptimistic

But the race was But the race was shortshort and and came to a surprising came to a surprising endend, ,

where the team from where the team from Malaysia won by more than Malaysia won by more than

oneone kilometer !!!kilometer !!!

The morale was low at the The morale was low at the Headquarters of Headquarters of Cow & CoCow & Co in in Switzerland. Switzerland. Nobody understood such a huge Nobody understood such a huge difference.difference.

Top Top Management decided that the decided that the causes MUSTMUST be be identifiedidentified

A A project teamproject team was was set up, to identify set up, to identify the cause and to the cause and to suggestsuggest corrective corrective

measuresmeasures if neededif needed

After weeks of discussions, the After weeks of discussions, the project team came to the project team came to the following findings:following findings:

•The Malaysian teamThe Malaysian team included included sevenseven rowing officers and rowing officers and one steering executivesteering executive

•In the Swiss teamIn the Swiss team there was there was oneone single rowing officer and single rowing officer and seven steering executives steering executives

The top Management The top Management reacted immediately reacted immediately and and hiredhired external external ConsultantsConsultants to to conduct an conduct an in-depth analysis on the Swiss on the Swiss team‘s structureteam‘s structure

Some months and many 10‘000 Some months and many 10‘000 Swiss Francs later, the Swiss Francs later, the ConsultantsConsultants came to following conclusion:came to following conclusion:

• Too many team-Too many team-members had members had been steeringbeen steering

• Too few of them Too few of them had been had been involved in involved in moving the boatmoving the boat

The Top Mangement reacted in a The Top Mangement reacted in a radical way and restructured the whole radical way and restructured the whole team as follows:team as follows:

• ... Four steering executives... Four steering executives

• … … Two senior steering managersTwo senior steering managers

• … … One steering directorsOne steering directors

• … … One rowing officerOne rowing officer

Additionally, they implemented a Additionally, they implemented a sophisticated sophisticated Performance evaluation Performance evaluation systemsystem to motivate the to motivate the one rowerone rower. . The top Management said :The top Management said :

We must We must enrich his his responsibilities to to make his job more make his job more interesting and interesting and therefore get the therefore get the

bestbest out of him out of him

The next year came and a The next year came and a second race was organizedsecond race was organized

The result was cruel. The result was cruel. The Asian team The Asian team wonwon again again

This time by This time by TWOTWO KilometersKilometers

The The consequence consequence

of such a of such a heavy blow:heavy blow:

• The top management The top management sackedsacked the one the one rowerrower because of bad because of bad performance !!! !!!

• The The equipmentequipment was all was all sold and all new and all new related investments were frozenrelated investments were frozen

• The The ConsultantsConsultants were were praisedpraised for doing a for doing a great jobgreat job

• The money that was not invested was The money that was not invested was distributed among the top management distributed among the top management and the steering committeeand the steering committee

A metaphoric presentation A metaphoric presentation byby

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