The key elements of the Theory of Constraints were published in the 1980s in Dr. Goldratt’s novel “The Goal”. It became an international bestseller and remains a classic of management. Since then, the theory has been significantly expanded on. There also were numerous advancements made in identifying the appropriate managerial practices to help with the […]
Beyond Continuous Improvement: Deming and Goldratt together
Why are so many companies being managed the same way as ten years ago, and with the same kind of organizational structure? It’s hardly surprising that there are a myriad of challenges when it’s clear to everyone that our reality has moved on, even if we haven’t. Trying to succeed with the same old recipes for […]
Confused about the Theory of Constraints? Don’t be!
A lot of confusion has arisen about the Theory of Constraints (TOC) and people publish the strangest things about it. Just this week, an entrepreneur in the USA is quoted as saying that his company “applies the theory of constraints to help identify the most pressing factors that stand in the way of achieving a […]
Shifting Your Focus from Cost to Throughput is How You Can Thrive – a Systemic Approach Part 15
In the previous posts in this series, we looked at how to build and manage an organization as a system to radically improve performance and compete in today’s complex, non-linear global business environment. This is what the Decalogue methodology was designed to do. So what happens when the company achieves a much higher level of […]
Are Companies with a Hierarchical/Functional Mindset Dinosaurs? A Systemic Approach Part 14
If you are a company that has a Hierarchical/Functional mindset, are you a dinosaur? We would say yes and time is running out for such companies in today’s complex scenario. It is also an enormous opportunity for all those companies who decide to abandon flawed thinking and adopt an evolved approach. In today’s post, Dr. […]
Controlling the Whole Organization through the Constraint – A Systemic Approach Part 10
Just ONE point of your organization can help you organize and manage your whole company. It’s a strategically chosen constraint. Everything else is connected to it so you can focus on ONE area instead of trying to focus on ALL areas – something that is impossible and a great time waster. Step Five of the […]
How to Make the Best Decisions for Your Company and Measure What Matters – A Systemic Approach Part 3
In the previous post we looked at interdependencies and establishing the goal of the system. In order to steer our system in the right direction we have to know how to make the right decisions. To do this it is essential that we be capable of assessing to what extent our system is achieving its […]
Business Performance Metrics Every Entrepreneur Needs
“Without this information I would have gone out of business long ago.” Those are the words of a CEO in a recent conversation and he was not talking about Cost Accounting. Cost Accounting is not giving companies all the information they really need. That may seem astonishing but it is a fact. There is a […]
Why Doesn’t Every Company Use the Theory of Constraints to Succeed?
While visiting a plant last month, our Founder, Dr. Domenico Lepore, told the dramatic story of his experience at a German aluminium plant, part of a multi-billion, multi-national business. The General Manager had invited Domenico to give a presentation after hearing him speak at a Theory of Constraints (TOC) conference. In that plant, the hot mill […]
Avoiding Compromise with a Win-Win Solution
I recently re-posted on LinkedIn something from Goldratt Consulting with a quote from Dr. Goldratt: “Our fear that conflicts will lead to a tug of war diverts management attention to constantly struggle with unacceptable compromises.” This is part of the introduction to a book Dr. Goldratt was working on called ‘The Science of Management’ before […]
