Theory of Constraints Handbook - James Cox Iii [650]
Challenge of the Future
When complex organizations have TDD in place along with the other supporting injections, the organization is positioned to deliver in ways that other competitive complex organizations cannot match. When there are few conflicts in the organization and resources are available as needed, the organization is in a position to follow its strategy as never before. This success creates its own challenges. Rapidly improving organizations soon hit a roadblock to growth when the leadership teams are stretched too thin. Reliable leadership quickly becomes the constraint. Figure 33-1612 shows that during periods of rapid growth, the frequency of making key decisions increases at the same time as the seriousness of each decision. Management has less and less time to make more and more important decisions. There is less and less time available for analysis and evaluation.
FIGURE 33-16 Decision steps under continued growth. (Used with permission of John Thompson.)
The Value of Everyone Measured by the Same Simple Measures
Under the ever-flourishing conditions of continued growth shown in Fig. 33-16, the leadership teams must feel confident that they are making correct decisions and moving in the right direction. Moreover, they must feel confident that the organization as a whole can continue to accept and meet the new challenges facing them. The breakthrough injection—everyone in the organization who has a significant impact on Throughput is measured by the same simple measure (that aligns all the actions of the organization with the goals of the organization)—will go a long way toward providing the confidence needed. In a rapidly growing organization, promotions occur frequently. Those who are experienced with the TDD, IDD, and T/D measures and other TOC approaches within the new organizational culture are those best suited for leading the organization up the growth curve. However, it is often difficult to determine the effectiveness of the management team until after too many errors are made.
Leadership Certification
To solve this problem, organizations are strongly encouraged to develop or use external certification organizations to validate that members of the leadership team are aligned and all moving in the right direction at the same time. The Theory of Constraints International Certification Organization13 offers such certification. TOCICO maintains an online TOC Dictionary as the standard vocabulary across all functions, divisions, and companies. Many certified TOCICO members are teachers and consultants who offer services needed by complex organizations. TOCICO certification is readily available worldwide and is updated continually to current technology. Their exams meet the needs of all parts of the organization. The most valuable element is to have most managers certified so they all speak the language (a common language), and have the same goals, measurements, and understanding of the strategic direction of the system. However, employees of any organization implementing TOC should take the TOCICO Fundamentals exam, which would ensure that they understand the basics of all TOC applications and day-to-day use of the TOC TP. Management could then be confident that all employees share a common language and understanding of management instructions and the reasons for them.
Summary
Complex organizations are composed of many individual units and departments that all depend upon each other for the orderly execution of their processes. While each unit is trying to improve and do its best, there needs to be an overall management system to get the complex organization moving and keep it moving and improving. The four Supply Chain Flow Concepts (Goldratt, 2009) set the direction for the solution. TDD, one of the TOC Supply Chain measures, provides the common measure for all units of the organization that have a direct impact on Throughput and is the mechanism for reliable and