Page 0: Page 1: Page 2: Once upon a time there was a Red rowing team . Page 3: This Red team agreed to hold an annual rowing race with a Green team . Each team would contain 8 m en. Page 4: Both team s worked really hard to get in the best shape. O n the day of the first race, both team s were ready to win. Page 5: FINISH The Green team won by 1 mile! Page 6: T he Red team was crushed in their defeat, but they were determ ined to win the race next year. So they established a panel of auditors to observe the situation and ascertain if there were any differences between the team s. Page 7: After several weeks of detailed intelligence gathering, the auditors could find only one difference; the Green team had 7 rowers and 1 captain... Page 8: Page 9: … and the Red team had 7 captains and 1 rower! Page 10: Page 11: U n-perplexed by the raw data, upper m anagem ent showed unexpected wisdom : they hired a consulting com pany to analyze the data and suggest a solution that would enable the Red team to win next year. Page 12: Page 13: A fter several m onths the consultants cam e to the conclusion that the ratio of captains to rowers was the problem in the Red team . Based on this analysis a solution was proposed: the structure of the Red team has to be changed! Page 14: Like sharks getting the scent of reorganization blood, upper m anagem ent wasted no tim e in restructuring the Red team into 4 Captains, led by 2 M anagers, reporting to 1 S enior Director with a dotted line to the rower. Besides that, in a blaze of unrestricted inspiration, they suggested they m ight be inclined to im prove the rower’s working environm ent by a non-m onetary reward and recognition schem e if there was im proved perform ance by the rower. Page 15: Page 16: FINISH The next year, the Green team won by 2 m iles....... Page 17: The Red team upper m anagem ent imm ediately fired the rower based on his unsatisfactory perform ance. Page 18: A bonus was paid to the Captains, Directors, and M anagers for the strong leadership and motivation they showed during the preparation phase and as an incentive for them to find a better rower for the next race. Page 19: T he consulting com pany prepared a new analysis of the restructuring activity, which showed that the strategy was good, the m otivation was great, the restructuring was executed correctly, but the tool used (which was not included in the original data) was su b-standard and had to be im proved. Page 20: Currently the Red team management is having a new boat designed; and to demostrate fiscal and HR dexterity for stockholders they also contracted a placement agency to advertise in other countries for a new (temporary, non-direct employee) rower. Page 21: