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Identifying improvement opportunity for applying TOC in “Struggling Organizations”

Typically an improvement opportunity would exist when lead time of progress is slower than expected and cash used is higher than expected. Also the business results measured in form of customer satisfaction, inventory and profitability are low. The root cause of such situations is hidden deep. People know about it intuitively but are unable to do any thing!

This root cause also manifests in other very common symptoms -
  • Managers and senior leaders are protecting their turfs. They are not working as a team. Finger pointing, politics, excuses, delays, one-upmanship etc. are common. Additionally they are not able to meet their functional goals.
  • Employees are measured primarily for their performance in terms of efficiency viz. how well they use inputs (time, cash, resources, etc). And mangers are afraid to keep idle these inputs because of the fear of losing them in future.

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Improvement opportunity for applying TOC in “Successful Organizations”

The success story of ‘Apple’ and Steve Jobs could be an inspiration for any one. He addressed constraints in way of his mission viz. “To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non computer expert” (sic).

Any system can be improved beyond limits if we keep addressing the constraints in way of improvement. Constraints by definition limit the capability of a system. The limit of improvement is in the mindset of leadership. They are limited by challenge of creating a ‘shared vision’ with their team because it is difficult to energize in absence of a viable strategy. This challenge is addressed by the “Inherent Simplicity” aspect of TOC that every system has an inherent simplicity that can be exploited to make it grow indefinitely.