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 […]
Cause and Effect Reasoning Is an Essential Skill for Leaders
An article in the Harvard Business Review draws attention to the problem of confusing correlation with causation. “Western management has failed to understand cause and effect” W. Edwards Deming Mistaking correlation for cause can be dangerous.because it prevents us from understanding reality. Most importantly, if we do not nurture the ability to think cause […]
20/20 Foresight? How Decision Makers Can Look Ahead for Unintended Consequences
How to think is not a skill that we learn at school, or even university. We take it for granted that by receiving an education we also receive information about using our brains in a more effective way. Sadly, every day we live with the consequences of poor decision making at every level, government, corporate […]
The Theory of Constraints on Wall Street – a SPAC Experience
This post is by Angela Montgomery, author of ‘The Human Constraint‘. Many people lump the Theory of Constraints together with Lean and 6-sigma as “techniques for continuous improvement”. This is a woefully inadequate perception of the Theory of Constraints (TOC). In all our publications we attempt to illustrate the universal scope of Dr. Goldratt’s achievement […]
