• Choose a category
• All
• Classic-Fiction

By Root 2930 0

employees, and the customers. This is achieved by focusing on the customers’ needs in such a way that competitors cannot quite duplicate, by choosing to service markets that do not all vary in the same direction at the same time, by using employee resources in a flexible way, and by shifting between the lucrative markets of the time. Yet, even the best of strategies may not be implemented completely if lower down in the organization there are unresolved conflicts. This is shown in Fig. 33-4, where lower down in the organizational structure there are conflicts that arise from different and competing measurement systems applied to different departments, organizational silos, independent business units, and employee reward systems.3

As we drop down through the layers of the organization to the tactics (objectives) of improving sales, accelerating projects, and improving distribution (a very small subset of the tactics involved in executing strategy in a complex organization), we see there are significant unresolved conflicts. The solutions to these specific individual conflicts4 have been addressed in previous chapters of this handbook. However, the problem is not quite so simple. What we see is that persistent unresolved conflicts at the bottom of the organization5 reflect back upward to higher levels of the organization to the point that there is conflict at all levels. Figure 33-5 illustrates the resulting generic conflict that propagates upward to all levels (even to the CEO): In order to succeed, we must do those things that will allow us to succeed. However, in order for them (the other side) to succeed, we must not do the things we deem important for our success. These conflicts happen at every level. Unresolved conflicts from below propagate themselves upward to jeopardize or restrict the success of the company. For example, when plants or departments focus only on efficiency, they often restrict their focus to very few like products so they can gain the highest level of productivity. The department (or plant) then becomes very sensitive to any market downturn for their few products. A second example occurs when normal project fluctuations result in unavoidable layoffs of people. However, when periodic layoffs are inevitable, we are not providing a secure and satisfying environment for the employees. Moreover, without dedicated employees, we seriously jeopardize the success of the company.

FIGURE 33-4 Conflicting tactics.

FIGURE 33-5 Conflicts everywhere.

These widespread conflicts block the true performance potential of the complex organization. The direction of the solution must do away with these conflicting issues and replace them with an outstanding level of cooperation.

Finding an Injection

The breakthrough injection comes from invalidating at least one assumption from the core conflict. Examining the assumptions relative to other TOC solutions often helps. A solution to the systemic core conflict will go a long way toward removing the reflected conflicts that spread through the system. However, we must remember that the more complicated the situation seems to be, the simpler the solution must be (Goldratt, 2008). The assumptions in Fig. 33-2 are provided in Table 33-1. Some potential individual injections are provided in Table 33-2.

Looking at these assumptions and potential individual injections, it appears the complex organization is a complex supply chain (or maybe a supply mesh) with internal and external links. The problems of the complex organization mimic the supply chain and lead to the typical distrust between links and the over/under capacity problems experienced by the supply chain. However, these relationship problems are compounded by many more interlinkages than exist in a typical supply chain and the fact that transactions and requests between organizational units are not as clearly defined as market transactions and are difficult to prioritize with each unit’s market transactions. While each element of the organization is trying to do its best, the problems continue. One