Article:
Daniel Lewis*, an investor at a Venezuelan equity firm, was in charge of acquiring two textile mills in South America. One was in Maracay, Venezuela and the other in Colonia, Uruguay. The Uruguayan mill's higher productivity persuaded Daniel to invite 40 Uruguayan workers to move with their families to Maracay, to improve output there. The initiative did not work out as expected. The Uruguayans resented the cold shoulder received from the Venezuelans, bickering was rampant, and productivity remained low. Before sending the Uruguayans back to Colonia, Daniel made a last ditch effort: he asked that the Uruguayans be fully entrusted with the denim unit at Maracay. This worked wonders. Left to themselves, the Uruguayan team increased productivity, and this awoke healthy competitiveness from the Venezuelans, whose productivity rose as well.
