A Continuous Process Improvement Story -------------------------------------- Once upon a time, Sandia National Laboratory (Sandia) and Los Alamos National Laboratory (LANL) decided to have a boat race down the Rio Grande. Both teams practiced long and hard and on Race Day, they were as ready as they could be. It was no contest... Sandia won by a mile! LANL was stunned and morale at Los Alamos fell to an all-time low. Senior management decreed that the reason for the crushing defeat must be found. So a Continuous Process Improvement (CPI) directorate was formed, comprised of some of the wisest senior managers in LANL. Their charter was to determine the "As Is" and develop a "Should Be" which could be implemented to win the next Sandia/LANL row-off. The As Is was completed after many meetings and much study. It showed that the Sandia team had eight (8) people rowing and one (1) person steering, whereas the LANL team had one (1) person rowing and eight (8) steering managers. The CPI team immediately hired a consulting firm to study the LANL management structure and help them develop the Should Be that, once implemented, would assure that LANL would win the rematch with Sandia. The CPI spent many months and millions of dollars studying the As Is, scatter-gramming, brainstorming, surveying, benchmarking, and networking. It was the team's consensus that the reason for the humiliating loss to Sandia was that the LANL team had too many steering managers. The Should Be that was adopted for use in the next race with Sandia was to have only four (4) steering managers, three (3) deputy steering managers, and one (1) associate deputy steering manager. It was also decreed that a new performance appraisal system would be put into effect for the one (1) rower. It was hoped that the new appraisal procedure would provide more incentive to work harder and become a six sigma performer. The CPI all agreed, "We must give the rower Empowerment and Enhancement, and surely we will win." Sandia won the next race by two miles. LANL appraised the rower as unsatisfactory and fired him.* The Lab then sold all the paddles, canceled all capital investments for new racing equipment, and halted development of a new canoe. Lastly, LANL paid an incentive award to the consulting firm, formed a new directorate to analyze and distribute the lessons learned from the Sandia/LANL races, and claimed another Total Quality Management victory in the following issue of the Newsbulletin. * Someone walking by put a line through "fired him" and wrote above it "promoted him into management".