It's Not Luck - Eliyahu M. Goldratt [45]
“Makes sense,” I say, and on a third post-it I write, “There is unprecedented pressure to promptly develop new products.” I stick this new post-it on the white sheet between the other two. We all examine it.
“It makes more sense,” Doughty agrees, “but something is still missing.”
“Yes; we call it ‘insufficiency.’ So let me add what I think is missing.” They wait for me while I scribble another note and stick it alongside the bottom one. I read the note that I’ve just added, “ ‘One of the most effective ways to increase sales is to develop new, improved products.’ Agree?”
They do.
“So, if ‘There is unprecedented pressure to take actions that will increase sales’ and ‘One of the most effective ways to increase sales is to develop new, improved, products,’ then,” and I read the intermediate note, “then, ‘There is unprecedented pressure to promptly develop new, improved products.’ Now, if ‘There is unprecedented pressure to promptly develop new, improved products,’ then, not before long, ‘There is the need to launch new products at an unprecedented rate.’ How does it look now?”
They like it.
I don’t.
“Fellows,” I say, “something is still wrong. In almost all industries there is unprecedented pressure to take actions to increase sales, but only some industries are launching new products at unprecedented rates.”
“I don’t agree,” says Brandon. “Almost every industry is launching new products at a higher frequency than ever before. Even banks are constantly coming up with new programs.”
“There is a difference,” Jim says. “Can you really compare what is happening in industries like cosmetics, golf clubs or anything related to electronics to what happens in banks? In those industries the average lifetime of a product is less than two, or even less than one, year. They have to replace almost all their products every two years. That is what I call at an unprecedented rate.”
“I guess you are right,” Brandon agrees.
“You see the problem?” I say. “At the bottom of the tree, we have statements that are correct for all industries. At the top, we have a conclusion that is correct for only some industries. Something is missing from the bottom,” I conclude. “So if we want the tree to be correct, we must add to the bottom the entity that exists for only some industries, which enables those same industries to develop new products at such a frantic pace.”
Finally, I say, “Let me suggest something,” and I add another post-it to the bottom. “‘There are industries where fast development of new materials enables the development of new products.’ ”
“He has a point,” Jim thoughtfully says. “A mediocre electronic engineer working with today’s components will produce a much better product than the best engineer ten years ago. So, what are we going to do with it? How are we going to correct our tree?”
“Like porcupines making love,” I say. “Very carefully. First we have to decide on a name for these special industries. Let’s call industries where fast development of new materials enables the development of new products ‘advanced material industries,’ for short.
“Now we have to reread what we’ve written and do any necessary corrections. If ‘There are industries where fast development of new materials enables the development of new products—advanced material industries,’ and ‘One of the most effective ways to increase sales is to develop new products,’ and ‘There is unprecedented pressure to take actions that will increase sales,’ then, ‘In advanced material industries there is unprecedented pressure to promptly develop new, improved products.’ ”
“It’s long, but it makes perfect sense.” Brandon is satisfied. “Let’s correct the top statement accordingly.”
Since I already know how clear his handwriting is, I prefer to do it myself. Now the upper statement reads, “In advanced material industries there is a need to launch new products at an unprecedented rate.”
“So far, it’s common sense, nothing more,” Doughty says.
I restrain myself