The core issue at Phillips66 is its hierarchy structure. If you look at our organizational tree it’s shaped like a hourglass and in many places it’s an upside down pyramid. (I’ll go into detail on this in part 2 of my rant series)
This reminds me of the Toyota VS GM in the Great Canoe Race.
A Japanese company (Toyota) and an American company (General 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 8 people steering and 1 person
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, 3 area steering
superintendents and 1 assistant superintendent steering manager.
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, dinners, and
free pens for the rower. There was discussion of getting new paddles,
canoes and other equipment, extra vacation days for practices and
bonuses.
The next year the Japanese won by two miles.
Humiliated, the American management laid off the rower for poor
performance, halted development of a new canoe, sold the paddles, and
canceled all capital investments for new equipment. The money saved was
distributed to the Senior Executives as bonuses 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 30 years
moving its factories out of the US, claiming they can't make money
paying American wages. TOYOTA has spent the last 30 years building more
than a dozen plants inside the US.