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implementations since 1999. Before this process was developed, roughly only one-third of the adopters realized significant improvements in project speed and Throughput; another one-third experienced marginal improvements (projects in control and on time); while one-third of the implementations failed to take off. Since introducing this process, the success rates have been near-perfect. Significant improvements are realized every time this process has been followed. However, the following points of failure can occur, and prevent an adopter from following the prescribed steps and enjoying consequent benefits:

Undertaking an implementation without a business imperative.

Top management not accepting or setting sufficiently ambitious improvement goals, or delegating the implementation to a staff function like a PMO. Critical Chain inherently involves changing the rules of managing Execution and performing at a higher level, not about planning and tracking projects differently.

Not changing the policies and measurements that conflict with the Three Rules; local (task-level) schedules and measurements are the biggest culprit.

Inability of the implementation team to apply the Three Rules to the environment under consideration. The most difficult parts are applying the pipelining rule, building good project plans (see Step 4), and designing and establishing task management.

Activating Buffer Management reports but not following through with coaching and mentoring of front-line managers in actively managing the buffers.

If the business case for Critical Chain is strong, and if any of the other failures mentioned occur, the reason is either lack of implementation skills or inadequate leadership.

Summary

Critical Chain works because it solves the real problem caused by uncertainties that are inherent to projects. It recognizes that while uncertainties can be somewhat lessened through better planning, they cannot be significantly reduced or eliminated. Therefore, Critical Chain curbs the immediate and most devastating effect of project uncertainties—unsynchronized priorities. The Three Rules provide an assured basis for coordinating projects’ tasks and resources to achieve optimal performance.

Second, getting results from Critical Chain pragmatically focus on translating these explicit Rules into practical procedures before trying to change behaviors and culture. Experience has consistently shown that practical procedures and robust buy-in of managers to the Rules are enough to get results quickly. Management buy-in is solidified by quickly achieving specific improvement targets based on real business needs. When Critical Chain Rules are also then embedded into management policies, management processes, and management information systems, organizations get as close to long-lasting and self-perpetuating results, culture, and behaviors as is possible in “human systems.”

Finally, there is no alternative to strong leadership—either for getting initial results or for ongoing improvements. Only top managers can change the old rules and preserve the new Rules for managing Execution. Only top managers can set appropriately ambitious goals for the organization. Any other assumption is folly and leads to failure.

References

Goldratt, E. M. 1997. Critical Chain. Great Barrington, MA: North River Press.

Goldratt, E. M. 2008. The Goldratt Webcast Program on Project Management: Sessions 1–5. (Video series: 5 sessions) United Kingdom: Goldratt Marketing Group.

Goldratt, E. M. and Goldratt, A. (R). 2003. TOC Insights: Insights into project management and engineering. Bedford, UK: Goldratt Marketing Group.

Realization. 2010. Case Studies. Accessed March 30, 2010 at: http://www.realization.com/case_studies.html

Realization. 2010. Critical Chain Results. Accessed March 30, 2010 at: http://www.realization.com/customers.html

Realization. 2010. Lessons Learned. Accessed March 30, 2010 at: http://www.realization.com/projectflow/lessons_learned.html

Sullivan, T. T., Reid, R. A. and Cartier, B. 2007. TOCICO