TOC

The Million Dollar Question…

“With so many things needing improvement in my business, where should I Focus my efforts to get the most Leverage… to make the most money now and in the future, in the shortest possible time… so I can exit wealthy?”

To answer this question, business owners try to Solve Symptoms (effects) instead of finding the Root-Cause (Constraint) of ALL their Symptoms and fixing that.

3 Reasons Why They Don’t Find The Root-Cause…

  1. They don’t know how to think using logic (logic is the rules for
    thinking using scientific cause and effect);
  2. It takes time and effort – they think they don’t have much spare time and it takes 300% more brain energy to think logically than operate on automatic;
  3. They’re stuck in their paradigm; too close to the problem (can’t see the wood for the trees) and emotionally attached.

This causes them to accept the really BIG PROBLEMS as a given and unsolvable, so they just focus on solving small problems…

Some Undesirable Effects/Symptoms of a Deeper Cause:

  • Lack of direction or vision;
  • Poor sales, profit, cashflow, or return on investment;
  • Lots of customer complaints and/or product faults;
  • Can’t keep repeat customers or create loyal ones, they defect to the competition;
  • Hard to attract and/or keep star performing staff;
  • No control over predictable, measurable results (no effective and efficient systems);
  • Business depends too much on them and they are working too hard with too many hours!

Every business owner, and hopefully manager, has the Goal of making more money, while providing a secure and satisfying environment for staff (and the owner!) and providing a perception of value for the target market – now and in the future.

And, for it to continually improve performance, productivity, and stability, while increasing value to stakeholders, and without ever exhausting resources and without excessive risk.

Resources are always limited (people, time, money), so how do you know where and when to allocate available resources to improve the business and grow in the most effective and efficient way?

We all know that things need to change to improve!

But not all change results in an improvement!

In fact, research shows that the majority of changes (typically 60% -80%) initiated by management and owners to improve their business, do not result in a measurable improvement in the “bottom line” and a significant percentage of those improvements actually deteriorate performance, value, and profits.

With these statistics, it’s no wonder that business owners are scarred to make changes – if it’s not broken don’t fix it! – and yet, just about every business is broken to some degree and needs fixing.

TOC has the solution…

TOC (Theory of Constraints) is science applied to business using cause and effect thinking. It’s an overall management philosophy founded on the idea that all real world systems; whether personal, interpersonal, or organisational; has at least one constraint or weakest link: something that holds the system back from accomplishing more of its primary purpose, or goal.

The rate of this accomplishment is called throughput. If a system had absolutely no constraints or weak links, it would be capable of infinite throughput. But although infinite throughput is impossible, amazing throughput gains are possible through the careful identification and management of the system’s key constraints.

The purpose of TOC, originally developed by Eliyahu M. (“Eli”) Goldratt and first popularised in his bestselling business novel The Goal, is to give individuals and organisations the tools they need to manage their constraints in the most effective manner possible.

Originally applied to manufacturing lines, TOC principles have been successfully adapted for areas as diverse as supply chain, accounting and finance, project management, health care, military strategic planning, software engineering, and sales and marketing.

Finding your constraint and managing it, is the #1 CHEAPEST & BEST WAY TO MAXIMISE PROFITS NOW & IN THE FUTURE

The alternative is “Guessing” or trying to solve “Symptoms” or effects and not eliminating the root cause of all the problems or undesirable effects, that a business currently has.

Which is like rearranging deckchairs on the Titanic!

Don’t get distracted by the next shiny object or specialist that comes along; marketing or social media guru, training or systems expert – who are all pushing the barrow for their product and who are all trying to solve symptoms.

Dig deep, find your constraint and manage it!

Or let us do it for you.

 Book in a 10 minute velocity (speed & focus) session and experience some magic…

“the difficult we do straight away, the impossible just takes a little longer!” -JT