Management lessons from The Goal: A Process of Ongoing Improvement

Eliyahu M. Goldratt and Jeff Cox wrote The Goal, where they gave used real life situations to write a business fiction, and in the process making us undetstand business dynamics better. The Goal is about the life of Alex Rogo, a recently transferred manager of one of the plants of UniCo Manufacturing Corporation, located in a slowly declining industrial town. Alex Rogo and his team determined these steps as critical to solving throughput problems:

I. Identify the systems constraints: Bottlenecks, policies, etc.

2. Decide how to exploit the systems constraints: What to change, what to change to and how to change it.

3. Subordinate everything else to the above decision.

4. Elevate the system constraints: This may involve re-evaluating constraints.

5. Warning: If in the previous steps a constraint has been broken, go back to step 1, but do not allow Inertia to be the cause of a system constraint.

The Top Ten lessons from the Goal:
1. Always start a solving a problem by finding out what is really going on by “walking around” discover the process. Review each area for breakdowns.
2. Hire skilled people who will benefit the company.
3. Remember you have a life outside of your work life.
4. Brainstorm how the changes will affect employees and the community. Expect to receive feedback.
5. Big changes are not always the answer. Start slow by making small changes that will make a big difference.
6. Have an open communication with employees.
7. Notice details. Not all details are important.
8. If one change creates another problem, backup refocus on the first problem.
9. Inventory should be kept to a minimum – too much is a waste of money.
10. Know what the expected outcome needs to be.

[From the Great Books  Series. Also see The Success Manual  - Encyclopedia of Advice, which contains summaries of 100+ Most useful books.]


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