Sunday, February 18, 2007

Fifth Insight

Purple Curve Insight #5:
Goldratt and those contributing to his TOC
methodology are advancing the most
effective planning tool known to man.

One of those contributors, H. William Dettmer (disclaimer: Dettmer is a client of Throughput Press) took the Theory of Constraints, and added John Boyd's OODA Loop to form the Constraints Management Model (CMM).

Add the power of Lean and Six Sigma (to name just two tool sets) as tactics to a CMM based strategy, and there are few (if any!) results that would be impossible. I follow a lot of leadership blogs, and am amazed at the brilliance and yet at times, the ignorance. Kinda like most any other subject!

Few methodologies have the tools to determine (in a holistic, systems oriented fashion) the proper leverage point at which to apply the given tool set. Lean (TPS), TQM, and Six Sigma offer tremendous value to most any business. If, and only if, your efforts are focused on the proper challenge. Lean's muda, mura, muri only make sense when these issues are the weakest link in your business.

If one fails to ensure adequate cash flow, they will run out of money before any one or more tactics eliminate enough waste to make a difference. Apply TOC/CMM's holistic strategic tools in order to focus your tactics. First. There would then be little (if any) bad press about "failed" initiatives. Just tons of success to report.

Get a better understanding of TOC with my book: Purple Curve Effect.

Then buy Dettmer's Strategic Navigation (all but the military buffs can skip the first three chapters, except for pages 27 through 31) to supercharge your strategy.

Finally, share your results with me. I am always looking for articles on business results.

Jeff 'SKI' Kinsey, Jonah

P.S. Don't own an Eli Goldratt book? I suggest Critical Chain for the first time reader.

(c)Copyright 2007, Jeff 'SKI' Kinsey, Jonah
All rights reserved.

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