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You do not rise to the level of your goals, you fall to the level of your systems.

Every situation, no matter how complex it initially looks, is exceedingly simple.

If you want people to take action, you must refrain from giving them the answers...

Most companies judge their performance based on 2 bottom line numbers (Net Profit and ROI). Another measure that is very important is the data found on the cash statement. But these are NOT what we are after. We are looking for measures that show the impact of local decisions.

Measurements are a direct result of the chosen goal. We do not choose to measure “things” before we know the goal.

Some troubling questions: 1. Are there inherent conflicts between the providers and their clients? 2. Should the providers be held responsible for their implicit promises? 3. What software module should be implemented first?

The 4x4 process First four days: reshaping the experience of managers. Second four days: reaching true consensus on core problem, solution and action plan.

The Goldratt Satellite Program 1. Operations 2. Finance & Measurements 3. Project Management / Engineering 4. Distribution 5. Marketing 6. Sales & Buy – in 7. Managing People 8. Strategy

How to change a whole business unit? The obstacles to reaching a true consensus: 🧙‍♂️ The dominant, impatient visionary. 🧑‍💼 The conservative. 📚 Extrapolating from the past.

Why a holistic approach? 1. Improving only one link may cause problems in another. 2. Improving only one link may cause problems for the link that improved. 3. Improving only one link is definitely a waste of major benefits.

The common claim: There are no silver bullets. The claim of TOC: There are silver bullets.

Things that should have been done and were not. • RELIABILITY Things that should not have been done but nevertheless were. • EFFECTIVENESS

Even in our technology based era, which is the prevailing culture? • A cent plus a cent plus... accumulates to a fortune. • If I can find a leverage point I can move the earth. … Archimedes

Using the Socratic approach, it is not difficult to cause people to agree full-heartedly with a fundamental change. But... agreeing with the change and taking actions to implement the change are two separate issues.

People resist change. The bigger the change, the stronger the resistance. Is it feasible to expect an organization to go through such a fundamental change?

Measuring a supplier (RELIABILITY): Throughput Dollar Days Measuring a client (EFFECTIVENESS): Inventory Dollar Days.

Trust is nice as long as there are measurements that serve as a watchdog.

To induce fast improvements what should be measured? 🫣👇 - What is done properly - What is not done properly

Use buffer management to set priorities.