All business activities are executed within a system. There are internal systems like:

  • Manufacturing
  • Logistics
  • Finance
  • External IRS Systems

that all regulate and moderate employees’ contribution to the organization and that influence investment and expense decisions.

If you are entrusted with the management of an organization, your success is measured by your ability to effectively deploy and utilize resources to generate more of the goal the organization is set to achieve.

If you are leading a charitable organization, it is to solicit and secure the largest amount of donations.

If you are leading a for-profit organization, it is to secure the largest profit possible on an ongoing basis.

To insure that your business with all its interdependent systems achieves its goal, you have to continuously drive more effective operation. In our interaction with hundreds of companies around the world, we have found some executives who can do so effectively. Those that do, invariably deliver superior results to those who don’t. What is the difference?

The Winners:
  • Constantly evaluate the business systems to identify which are limiting the company’s growth.
  • Focus their very precious time only on the very few constraints that limit greater success.
  • Deeply understand the way the organization’s systems interact for greater synergy and profit.
  • Measure and act on the variables that drive system velocity rather than system cost.
The Non-Winners:
  • Constantly evaluate business functions to identify sources of cost and waste, relentlessly driving cost out of every operation.
  • Disperse their very precious time across countless, ever-changing priorities from operational level crises.
  • Focus on structure, process and function as the building blocks of cost-effective organizations.
  • Measure and act on all cost drivers, striving to plug cost leaks at every process and operation.

We have come to understand that the crucial difference is in the way the winners analyze, understand and lead their companies. That requires a very specific set of management capabilities to:

  • Understand the dynamic interaction of internal and external business systems.
  • Identify the very few constraints that, if removed, would significantly elevate the performance of the entire enterprise.
  • Predict the reaction of other systems to the change in performance and design the leadership intervention to negate those outcomes.
  • Carefully coordinate the system reconfiguration to deploy the systemic changes in a rapid and predictable manner, making small adjustments as they go.
  • Fully align everyone to the operating cadence of the new system interactions to insure the anticipated gain in bottom-line results.

The TOC Thinking Process provides those capabilities to you and your management team. It provides a common understanding and management model that dramatically improves the leadership effectiveness of the organization, and thereby a consistent gain in profitability and success.

The FIVE THINKING PROCESSES ARE:
  • Current Reality Analyses: Understand the business systems and where the constraints are.
  • Gridlock Resolution: Understand why the constraints exist and what keeps them in existence.
  • Future Reality Prediction: Determine how the system will react when the constraints are removed to prevent unanticipated negative consequences while leveraging the self-reinforcing positive feedback loops.
  • Deployment Design: Writing the script for the new behavior of all the system components, insuring an orderly and controlled increase in velocity and performance.
  • Transition Activities: Short-cycle action and feedback loops to track and course-correct the deployment across the interdependent systems.

When the organization reaches the higher level of performance, new system constraints will appear and the cycle starts again. As you and your team build competence and dexterity with this toolset and capability, the performance improvement cycles decrease. This drives exponential improvement in business performance.

If you give us the opportunity to discuss how this capability can make you as successful, we will share more case studies with you. Send us an invite at contact@www.theoryofconstraints.org to start the conversation.
Do it now.
Can you afford not to?