A Japanese company and an Enron decided to have a canoe race on the Mississippi 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.

Afterwards, the Enron team became very discouraged and emotionally depressed. Enron management decided that the 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.

The Measurement Team hired a consulting company and paid them incredible amounts of money. After several weeks, the consultants made their report.

The consultants concluded that the problem was the Japanese had 8 people rowing and 1 person steering, while the Enron had 1 person rowing and 8 people steering.

To prevent losing to the Japanese again the next year, the rowing team's management structure was totally reorganized to 3 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager and 1 rower.

They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the "Rowing Team Quality First Program", with meetings, a luncheon and a free T-shirt and baseball cap for the rower: "We are working toward a cohesive synergy through a program of rower empowerment and enrichment through this quality program" said Ken Lay, CEO.

The next year the Japanese won by 2 miles.

Humiliated, Enron management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and cancelled all capital investments for new equipment. Then they gave a High Performance Award to the steering managers and distributed the money saved, as bonuses to the senior executives.