Whether the story is true, I don't know. But it illustrates an important point - that people want to do well, and it helps to show them how they're doing, and give them something to work toward. I personally believe that the competitive element is useful, but not necessary, for this point.
I heard this concept described another way recently. I was listening to a podcast about activism (I think on the excellent Big Vision Podcast, by Britt Bravo). The guest explained that people are often apathetic because they feel that their efforts are just a drop in the bucket. She said that drops can fill a bucket pretty fast, though. What's important is being able to see the bucket, and see all the other drops from other people, so we know we're making progress.
So the important thing is to provide some context, and show people what other people are working on, so you know you're not the only one working on something.
It was with this in mind that I printed a graph of our progress with our response letter backlog. My intern team does a great job of writing letters, but I think the seemingly-endless assignment of response letters must wear down on some of them. To use the metaphor from above, I wanted to make the bucket more visible by showing how many responses we had left. We have been making steady progress through our backlog, so I figured showing our team how we're doing would give everyone a bit of hope - we are doing well, and we're almost done!
I printed out a graph and showed it to the three interns in today, and asked them all to think about how we're going respond to everyone. I explained that I would show the latest graph every day to keep people aware of where we stood. I had expected a few more letters to come in, but was surprised to have nine letters in my inbox in the next half hour! What an effect!
We'll see whether this sort of effect is sustained over the long run, or if it is only a short-term boost that only occurs the first time I show someone the graph. But I have hope that it will really help give people an understanding of where we are, and remind people to focus on what they can do to help us get to our final destination.