[DeTomaso] allowing Detroit to fail

michael at michaelshortt.com michael at michaelshortt.com
Wed Dec 10 12:40:08 EST 2008


Another thing that you will find in Japanese countries is that the CEO only
makes about 7X the salary of the average worker, anything paid above that is
based on profitability in real money, not on paper.

Michael in Savannah

On Wed, Dec 10, 2008 at 12:36 PM, Thomas Tornblom <Thomas.Tornblom at hax.se>wrote:

> Working for a US company, but outside of the US, I must say that this
> story has a lot of merit.
>
> I have been working for Swedish companies in the past, and the
> management philosophy of US and Swedish companies are like night and day.
>
> Swedish companies tend to have a flat management structure, and all
> levels are more involved in the decision process. Employees are expected
> to take own initiatives.
>
> I just checked and I have 8 levels of managers above me.
>
> Need I say that the stock is at around 1/70 of what it was when it
> peaked in the summer of 2000?
>
> Luckily I unloaded most stock and bought the 1984 GT5 in 2000. Had I
> kept the stock it would have been worth less than $800 today. :-|
>
> Thomas
>
>
> Rick Moseley skrev:
>  > A Modern Parable.
> >
> > A Japanese company ( Toyota ) and an American company (Ford 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 7 people steering and 2 people 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, 2 area steering superintendents
> and 1
> > assistant superintendent steering manager.
> >
> > They also implemented a new performance system that would give the 2
> people
> > 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
> > rowers. There was discussion of getting new paddles, canoes and other
> > equipment, extra vacation days for practices and bonuses. The pension
> > program was trimmed to 'equal the competition' and some of the resultant
> > savings were channeled into morale boosting programs and teamwork
> posters.
> >
> > The next year the Japanese won by two miles.
> >
> > Humiliated, the American management laid-off one rower, halted
> development
> > of a new canoe, sold all the paddles, and canceled all capital
> investments
> > for new equipment. The money saved was distributed to the Senior
> Executives
> > as bonuses.
> >
> > The next year, try as he might, the lone designated rower was unable to
> even
> > finish the race (having no paddles,) so he was laid off for unacceptable
> > performance, all canoe equipment was sold and the next year's racing team
> > was out-sourced to India.
> >
> > Sadly, the End.
> >
> > Here's something else to think about: Ford has spent the last thirty
> years
> > moving all its factories out of the US , claiming they can't make money
> > paying American wages.
> >
> > TOYOTA has spent the last thirty 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, and collecting bonuses...
> >
> > IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY
> >
> >
> >
> > But don't worry we [the tax payer] we will bail them out so we can
> continue
> > their mediocrity....
> >
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>
> --
> Real life:   Thomas Törnblom             Email:  Thomas.Tornblom at Hax.SE
> Snail mail:  Banvallsvägen 14            Phone:    +46 18 444 33 21
>              S - 754 40 Uppsala, Sweden  Cellular: +46 70 261 1372
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-- 
Michael L. Shortt
Savannah, Georgia
www.michaelshortt.com
michael at michaelshortt.com
912-232-9390


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