The Five Focusing Steps of TOC

A White Paper:
Theory of Constraints and its Thinking Processes - A Brief Introduction

Preface

The core constraint of virtually every organization The Goldratt Institute has worked with over the past 16+ years is that organizations are structured, measured and managed in parts, rather than as a whole. The results of this are lower than expected overall performance results, difficulties securing or maintaining a strategic advantage in the marketplace, financial hardships, seemingly constant fire-fighting, customer service expectations being rarely met, the constraint constantly shifting from one place to another and chronic conflicts between people representing different parts of the organization, to name a few.

Once the barriers that block those parts from working together as an integrated system are removed, significant and sustainable improvement in each and every problem mentioned above is the result.

What blocks organizations from tearing down these barriers? Organizations are often so consumed by the pressures to achieve their short-term performance targets, that taking the time to plan for the future is a luxury they can’t afford. Or, they have plans for the future, but are faced with the difficulties of balancing the risks of change with the opportunities they create – “if it ain’t broke, don’t fix it!”

Is it possible to use change to create a competitive advantage? Is it possible to do that quickly, without risk and while creating a reliable platform from which to seize the opportunities of tomorrow?