A Japanese company and a Canadian company had a canoe race. TheJapanese won by a kilometer. Canadian management decided the reason forthe defeat had to be found. A management team made up of senior managerswas formed to investigate and recommend appropriate action. Theyconcluded the Japanese had 8 people rowing and 1 person steering, whilethe Canadian team had 8 people steering and 1 person rowing. So Canadianmanagement hired consultants and paid them an incredible amount ofmoney. The consultants said too many people were steering the boat,while not enough people were rowing the boat. To prevent losing to theJapanese again, the rowing team's management structure was totallyreorganized to 4 steering supervisors, 3 area steering superintendentsand 1 assistant superintendent steering manager. They also implemented anew performance system that would give the one person rowing the boatgreater incentive to work harder. It was called the Rowing Team "QualityFirst" Program, with meetings, memos and free pens for the rower. Thenext year the Japanese won by two kilometers.Humiliated, the Canadian management laid off the rower for poor performance,halted development of a new canoe, sold the paddles, and canceled all capitalinvestments for new equipment. Then they distributed the money saved as bonuses tothe senior executives.