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Deming and Theory of Constraints for CEOs and Executive Teams for the Age of Complexity. Ess3ntial Critical Chain Project Management

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You are here: Home / Archives for constraint

Feb 03 2021

What’s Driving Profitability in Your Business and What Isn’t – How to Find Out

What’s Driving Profitability in Your Business and What Isn’t – How to Find Out

If you knew accurately what is actually making money in your company wouldn’t that then influence all your decisions regarding cost and investment? Well, isn’t that what accounting is for? The problem is, traditional accounting fails to give a complete and correct picture of what is happening dynamically and what is really driving profitability. Every company is […]

Written by angela montgomery · Categorized: Systems Thinking, Theory of Constraints · Tagged: constraint, Decision making, profitability, throughput accounting

Dec 16 2020

Vital Insights from Managing Variation and Constraints – Out of the Crisis Series Part 3

Vital Insights from Managing Variation and Constraints – Out of the Crisis Series Part 3

Putting new knowledge to work: Managing Variation and Constraints Stamp out the fire and get nowhere. Stamp out the fires puts us back to where we were in the first place. Taking action on the basis of results without theory of knowledge, without theory of variation, without knowledge about a system. Anything goes wrong, do something about it, […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world · Tagged: constraint, out of the crisis series, variation

Feb 19 2020

Why Your Pricing Strategy is Losing You Business

Why Your Pricing Strategy is Losing You Business

A company in the furniture business lost a good repeat customer a few months back. They were devastated because they were already selling considerably less than previous years.  Their customer wanted to a pay a price for their product that, according to traditional cost accounting, was not a price that allowed them to make any […]

Written by angela montgomery · Categorized: P&Q exercise, Systems Thinking, systems view of the world, Theory of Constraints · Tagged: constraint, P&Q exercise, pricing strategy

Jun 08 2019

Every Project is a System – Don’t Ignore these Systemic Principles for Effective Project Management

Every Project is a System – Don’t Ignore these Systemic Principles for Effective Project Management

This week we delivered an over-subscribed webinar for the Project Management Institute (PMI) global platform. It is always a privilege to address people in many different countries on such a vital subject matter. Project Management affects every single one of us, as citizens and consumers.  Today’s post introduces some critical concepts when it comes to effective […]

Written by angela montgomery · Categorized: Network of Projects, project management, Systems Thinking, systems view of the world, Theory of Constraints · Tagged: constraint, critical chain, PMI, project management

May 16 2019

The One Principle You Cannot Ignore for 21st Century Business Success

The One Principle You Cannot Ignore for 21st Century Business Success

There is one universally valid principle that no business can ignore to achieve success and sustainable growth, highlighted in the following extract from the business novel ‘The Human Constraint’, www.thehumanconstraint.ca bought in 40 countries so far.  May looked at her notes again. She had to get things right for the article about the new way that […]

Written by angela montgomery · Categorized: constraint, Systems Thinking, systems view of the world, Theory of Constraints · Tagged: constraint, hydro-electric power, the human constraint

Sep 06 2018

Three Steps to Optimal Performance in Any Organization

Three Steps to Optimal Performance in Any Organization

There are three steps that allow any organization to achieve optimal performance. Before we say what they are, let’s step back and understand one fundamental principle that affects how organizations get results. What happens when more than one person or more than one entity work together in the same direction? Is the result just the […]

Written by angela montgomery · Categorized: constraint, Synchronized production, Systems Thinking, systems view of the world · Tagged: constraint, interdependencies, optimal performance, variation, vectors

Jun 19 2018

Give Up Busy – Choose Productive

Give Up Busy – Choose Productive

Being busy is considered by many to be a virtue. People may be giving their businesses 200% of effort. But in reality, being busy as you work through a shopping list of “to do” tasks can be the opposite of virtuous. How?  Because it can lead to wasting time on the wrong things, unproductive multi-tasking […]

Written by angela montgomery · Categorized: constraint, project management, systems view of the world, Theory of Constraints · Tagged: busy, constraint, critical chain, productive

Apr 27 2018

Bulldoze Business Schools? A New Systemic Curriculum for Complexity in Business and Management

Bulldoze Business Schools? A New Systemic Curriculum for Complexity in Business and Management

Our business world is changing rapidly. Complexity dominates and old solutions no longer work. Some refer to this as the ‘Fourth Industrial Revolution’. Given all these changes, it is remarkable to see that MBAs are offering much the same program content as 20 years ago. A Professor in the UK has gone as far as […]

Written by angela montgomery · Categorized: Network of Projects, Systems Thinking, systems view of the world · Tagged: complexity, constraint, curriculum, network of projects, project management, systems view, variation

Mar 20 2018

Exploit the Constraint, Not Your People (Are you listening, Amazon?)

Exploit the Constraint, Not Your People (Are you listening, Amazon?)

An article in ‘Business Insider’ this month revisits what it’s like to work at Amazon. While there may have been some improvement since the 2015 NYT article that referred to a bruising culture and people crying at their desks, there still seems to be evidence of exploitation. There is only one kind of exploitation in organizations […]

Written by angela montgomery · Categorized: systems view of the world, Theory of Constraints · Tagged: amazon, burnout, constraint, exploit, jeff bezos, resource optimization

Mar 15 2018

Managing Risk through a Leverage Point (constraint) – A Systems View

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 […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world, Theory of Constraints · Tagged: constraint, leverage point, network of projects, risk management, system-wide risk, systemic risk

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  • Why Is Managing Change So Hard and How Can We Make it Easier? February 25, 2021
  • Creating Connections Between Company Functions – Back to Deming February 19, 2021
  • Human Resources – a New Perspective for Our Post-Pandemic World February 10, 2021
  • What’s Driving Profitability in Your Business and What Isn’t – How to Find Out February 3, 2021
  • Business, Politics, Wall Street: the Learning Organization and Our Interconnected Future January 29, 2021
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  • A New Economics for Sustainable Prosperity – Out of the Crisis Series Part 7 January 13, 2021
  • Identifying Assumptions to Unlock Innovation and Move Beyond the Crisis – Out of the Crisis Series Part 6 January 6, 2021
  • Learning to Think Systemically to Make Informed Decisions and Pre-empt a Crisis – Out of the Crisis Part 5 December 30, 2020
  • How to Manage Decentralized Work – Out of the Crisis Series Part 4 December 23, 2020
  • Vital Insights from Managing Variation and Constraints – Out of the Crisis Series Part 3 December 16, 2020
  • What’s Wrong with Organizational Structure – Out of the Crisis Series Part 2 December 9, 2020
  • A Serious Knowledge Gap Affecting Leaders and Executives – Out of the Crisis Series Part 1 December 2, 2020
  • How to Prevent Chaos in Any Project or Initiative November 26, 2020
  • The Words We Use Can Change Our Reality – Shifting to a Systems View November 20, 2020

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Recent Posts

  • Why Is Managing Change So Hard and How Can We Make it Easier? February 25, 2021
  • Creating Connections Between Company Functions – Back to Deming February 19, 2021
  • Human Resources – a New Perspective for Our Post-Pandemic World February 10, 2021
  • What’s Driving Profitability in Your Business and What Isn’t – How to Find Out February 3, 2021
  • Business, Politics, Wall Street: the Learning Organization and Our Interconnected Future January 29, 2021

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