Theory of Constraints Handbook - James Cox Iii [69]
Practical Challenges in Implementing Critical Chain
Experience shows that no matter what the environment, there are three sets of challenges in realizing the benefits of Critical Chain. These challenges all arise from the fact that Critical Chain is an enterprise solution for synchronizing project execution, rather than a planning and control technique for individual project managers.
Challenge 1: Gaining Managerial Commitment for Implementing the Three Rules
To state the obvious, without managers’ commitment it is not possible to activate any new management rules.7 To be clear, commitment is not about managers agreeing with the idea of Critical Chain. It is about them thoroughly thinking through the details of the changes, overcoming the hurdles that will come up, and getting results.
Buy-in needed to gain the commitment: As many would attest, even after managers are trained by experts and even after the method has been successfully piloted on one or two projects, organizations may not undertake a full implementation. Not surprisingly, lofty visions and abstract mission statements advocated by change management gurus don’t break the inertia either.
True buy-in is achieved only when managers realize why improving project performance is vital for the business (why change?). They also need to appreciate that the management challenges they face daily and the inordinate waste of time and capacity stem from the same root cause, that is, poor synchronization of tasks and resources.
Challenge 2: Translating Concepts into Practical Procedures and Instructions
Once managers have bought into the need for change and the validity of the Critical Chain Rules, a host of technical questions arises. What is the right level of WIP? How do you transition from high WIP to low WIP? When do you release new projects into execution? How do you size buffers? How much detail do you put into project plans? How do you ensure that removing local due dates and local efficiency measurements does not lead to loss of accountability? What does it mean to actively manage buffers?
Many such questions are answered throughout this chapter in a summary form. “TOC Insights into Project Management”8 and “The Goldratt Webcast Program on Project Management”9 provide more in-depth explanations.
Challenge 3: Sustaining the Critical Chain Rules and Results
How are organizations prevented from sliding back into their old mode of running projects? How do you adjust Execution as business needs change? Can the implementation be protected from changes in personnel, especially at the top?
These issues are not unique to Critical Chain but common to all management systems. Moreover, sustained superior performance is not a natural state for organizations; it requires strong leadership to produce great results on an ongoing basis. Still, hands-on experience in many environments has repeatedly shown that the following actions significantly increase the odds of sustained success with Critical Chain.
Mechanizing the Changes
Embedding the Critical Chain Rules into management policies, management processes, and management information makes an implementation less dependent on people. It makes sure that the Rules are not subject to individual choice; and it also allows them to be easily understood and translated into decisions and actions. Following are some examples of such mechanization, and making the fruitful practices routine:
WIP Policy: Set a limit on the number of projects that can be in execution at a time.
Pipeline Reviews: Are WIP limits being followed and, if not, why?
WIP Alerts: Highlight if the actual WIP exceeds the allowed WIP.
Task Management Policy: Make task managers accountable for following the buffer-based task priorities.
Task Management Reviews: Are task managers assigning resources in order of priority and, if not, why?
Priority Compliance Reports: Show if tasks are being worked out of priority.
Establishing a Process of Ongoing