Penny Foolish Pound Wise
What if you had to work with dangerous machines, Long hours with low pay. Will you?
This was the case of auto factory workers in USA in 1914. Obviously, due to such working conditions, most workers didn’t have any loyalty towards their companies. They would work for few months and then move on to another company.
During this time came a guy who began doubling their wages. He even reduced working days from 6 to 5 per week and also reduced daily working hours from 9 to 8. Isn’t it a dream come true for the workers.
One of the largest cost to any company is the cost of salary. Here was a company that not only doubled the wages but also reduced the working hours. This would have not only increased the cost of producing a car but also reduced the number of cars that could be produced in a month. It was an idea destined to fail. Or was it.
As soon as this news spread It suddenly became a Gold Rush. Workers from all corners came. He now had the opportunity to pick the best. Earlier, by the time the worker had become proficient in the task of making the car, he began moving to another company which probably did something else. All the knowledge that he had gained went down the drain. But here worker didn’t have to think of shifting. With every passing year these workers became better and better and better. Employees could now enjoy more time with their family and where more happier. This happiness reflected in every employees work.
By now you might have guessed the person is Henry Ford of Ford Motors.
Because of these innovations instead of increasing the cost of making a car he was able to actually bring it down. Not only did this skilled workers produce more cars, the quality of the cars were also very good. He was able to bring the car to the masses.
Although he was penny foolish he was pound wise.
This is still relevent in today’s world. This is the story that one of my friend told me. Once a maid applied for a job at his friends place.
She said “Sahab, i charge 3000 rupees”
He said “Take 4000 but you got to take complete ownership.”
Curious, what is this complete ownership. This is what he said.
I don’t want you to ask me every day what to make and how much to make. Based on the people you need to decide yourself. If you notice the veggies are over you need to get them yourself. you take complete ownership of the kitchen.
Did it really work out for this guy. Let’s see. The first time that my friend went to this person’s house.The maid asked if she need to make food for him too. He replied “whenever there is a guest you don’t ask but just make.” Now whenever my friend goes to this person’s place the cook makes food for him too. At times my friend used to leave without having. Today, the maid has taken so much ownership that with a good degree of surety she knows that if my friend will have food and accordingly prepare. This is ML not machine learning but maid learning.
Just like the automobile workers, maids too don’t think twice before dropping a house. Like Ford I am pretty sure that he wouldn’t face this trouble. One less headache from his life. With every passing day the maid becomes better and better and better.
He maybe penny foolish but he is pound wise.
People aren’t great at looking at things from a long term view. We tend to look at immediate return. Any relationship works on Give and Take. We have to always give a few things before we begin reaping the reward. Just remember at times we have to be Penny Foolish to be Pound wise.
