Dr. Eliyahu Goldratt’s main contribution to the theory of management has been to point out that any system is limited toward its goal by very few elements, the constraints. If we identify them we can manage them following the focusing steps that he developed. The Decalogue method leverages the intrinsic stability of a Deming-based system and […]
Using Your Constraints to Improve Business Performance
On a client’s website, they rightfully explain that their technology frees their customers of certain constraints. What exactly do we mean by constraints and are they a totally bad thing? We all want more freedom. A constraint would seem, by definition, to be something that robs us of freedom. But what we need to do […]
Managing Risk through a Leverage Point (constraint) – A Systems View
In our last post Understanding Uncertainty and Systemic Risk in Organizations we explained how management must involve the management of variation. Every single process, relationship and communication in our organization, whether we are aware of it or not, is affected by variation. If we ignore variation then we are not managing, and if we are not […]
Using Constraints as a Leverage Point for Sustainable Growth
Whether you’re aware of it or not, every organization has a constraint, something that currently limits output. Correctly identifying the constraint is the key to managing the entire organization in all its complexity with greater precision and predictability. As we have said many times, every human process, from getting to work in the morning to […]