Theory of Constraints Handbook - James Cox Iii [84]
Negative Branches
A negative branch (Scheinkopf, 2000, 117) is something bad that happens because of trying to do something good. It is the road to hell, paved with good intentions. For example, there are likely to be negative branches associated with giving money to a drug addict. We have seen a few negative branches arise repeatedly in implementations, even when the implementations produced real benefits; they are shown in Fig. 5-3.
Let’s assume that Fig. 5-2 is completely valid, and by virtue of WI’s quick successes with Critical Chain their cycle time pain has gone way down. The consultants leave and chalk up a success and everyone is happy.
Unfortunately, it is not common practice to set clear, realistic expectations of the likely value of an initiative (16). It is also uncommon to communicate that value once it has been achieved (17). As a result, many key people do not fully appreciate the value provided by the initiative (18).
Two problems occur when key people do not appreciate the value. First, if they are looking at costs versus benefits, they will get a skewed picture, especially keeping in mind that different people will have different perceptions of value. The benefits may not appear adequate relative to the costs (19). Therefore, while WI’s CEO may appreciate the tremendous benefits from their reduced cycle times, a functional manager may only see that his job is less important because his firefighting skills have become irrelevant. That functional manager will be less willing to lend his support to the initiative (4).
The second problem is that the success of the initiative means that people see the problem as “solved.” Unfortunately, there are still associated costs: internal experts, consulting support, licensing fees, and so on. Who wants to continue to pour time and money into a problem that is solved (20)? Often, they won’t (4). In addition, do not forget the fence-sitting loop from Fig. 5-1 (box 8): Repeated failure makes people more and more skeptical that success is possible.
FIGURE 5-3 Negative branches.
There is one more ticking time bomb: business environments change over time (21). We have seen the replacement of a senior executive produce a complete change in the focus of an organization. We have also seen something as simple as a market downturn result in drastic cost cutting. In other words, the perception of what problems exist, and their urgency, changes over time (22). Again, support disappears.
All these negative branches will eventually make WI’s Critical Chain initiative a legitimate target for cost reductions. Support personnel have to do more with less; management may even decide eventually to eliminate the PMO.7
The inescapable conclusion is that even the most successful and apparently well-managed initiatives are under threat. It is no surprise that people are skeptical that change can really happen.
Root Causes
Figures 5-1 to 5-3 suggest some root causes that drive the failure of change initiatives:
1. Lack of urgency (box 1)
2. An inadequate solution (box 6), including:
The problem, appropriate solution, or needed results are poorly defined.
Buy-in of key players is inadequate.
The implementation plan does not address major obstacles.
Insufficient resources are applied to the solution.
3. Lack of ownership in the solution (box 10)
4. Unwillingness to set clear expectations of value (box 16)
5. Inability to communicate value (box 17)
6. Changes in the business environment (box 21)
The Cycle of Results, presented in the next section, addresses the first five of these root causes. The sixth, changes to the business environment, looks like an inevitable result of doing business. However, it has a couple of important implications. First, in the midst of a