The theory of constraints
(TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in
his book, The Goal, published in 1984. According to him, , constraints are
usually external in nature; Physical
[Equipment, Material Shortage, Lack of People, Lack of Space], Policy
[Government Regulations, Company Procedures, Union Contracts], Paradigm
[Organizational beliefs and culture], and Market [when production capacity
increases sales, etc.], that can be
fixed using FIVE focusing steps – Identify the constraint, Exploit the
constraint, Subordinate and synchronize to the constraint, Evaluate the
performance of the constraint and Repeat the process. Consequently, the theory
of constraints can be used to improve the efficiency of organizational
operations, project management, supply-chain and logistics, high-speed
automated production lines, marketing and sales, and finance and accounting.
However, even best of the processes cannot work if employees are not skilled or
competent or the right fit for the job or are not motivated. Hence, the theory
of constraint works effectively well in Talent Management too, such as
performance management, recruitment, employee retention, etc. In his book,
“What got you here won’t take you there”, Marshall Goldsmith has explained how
human habits, behaviors, and beliefs can be constraints and can limit their
performance and growth. He highlighted 21 behavioral constraints which can be
eliminated through coaching using FIVE focusing steps as explained by Goldratt.
In this article, I will be explaining how I am using TOC in Talent Management
and helping leaders, managers and high potential employees in eliminating
constraints that are limiting their individual and team performance.
Since 2007, I have been
helping organizations, initially as a part of internal HR Team and later as a
Management Consultant, in improving performances of their employees and teams,
more often, the performance of sales team.
Earlier, when I was working as a part of HR team in an organization, I used to get recommendations from reporting
managers to terminate the employment of random employees based on poor
performances. An investigation into the case would often suggest that the cause
of poor performance was not a real constraint. As a management consultant, it
is my responsibility to find a right performance constraint, whether in an
individual, or a team and sometimes in an organization and fix it, just like an
automobile mechanic.
According to my experience,
potential performance constraints are as follows:
1. Poorly defined role – competency match [Job
Description]
2. Unclear objectives and performance
parameters
3. Inadequate communication within the
organization
4. Poorly designed performance management
system [KRA’s, Definition of Good Performance, Rewards, etc]
5. Lack of resources and authority to get
things done
6. Poor and conflicting working conditions
7. Inadequate performance of subordinates or
managers
In addition to above mentioned constraints, career
aspirations of employees, their motives and motivations, poorly defined
priorities and family life of employees also work as performance constraints
[for e.g. An employee going through a divorce and a fight over the custody of
his children won’t be able to give 100% to his work]. As a Management Consultant, someone who is
helping others to improve their performance, it becomes paramount for me to
identify the performance bottleneck and eliminate it from the way, and restore
the flow
Khoury’s Performance
Equation has summarized it beautifully –
Performance = [(D + A)/O]*Motivation
Where,
D = Degree of Quality
and Direction [Knowing what to do, Objectives, Goal, Clear definition of
Outstanding and Unacceptable Performance]
A = Ability of an
individual [Knowledge, Skills, Competencies, and Right fitment into the role]
O =
Obstacles/Opportunities [Lack of resources, Poor Processes, Lack of Authority,
etc.]
M = Motivation
[Career Path, Future, Family, etc.]
Which means a highly skilled
and motivated person won’t be able to perform optimally if he doesn’t have
properly defined parameters. Similarly, an employee working in an environment
that drives performance and has right system and processes in place won’t be
able to perform if he is not a right fit for the role or if he is not motivated
enough.
For me, cases of “D” and “O”
come under Consulting Assignments and “A” and “M” come under Coaching
Assignments.
Tools to Identify and recognize bottlenecks
To find the bottleneck,
whether at organizational level or at the team or an individual level, I use
several tools, such as – Problem Specification, Present State / Desired State
Technique, Process Mapping, Backward Process Mapping, Scenario Thinking,
Fishbone Diagram, Systems Analysis, Psychometric Assessments and 360-degree
feedback. Let me explain these
techniques in brief.
Problem Specification – It helps in
collecting specifics and appropriate data for defining a problem statement that
clearly indicates the link between an undesirable “as is” situation and the
desired “should be” situation.
Present State/Desired State Technique – This technique helps us identify where we are
and where we want to go so that an appropriate path can be found to reach the
desired objective. It also helps us to know whether the solution goals (desired
state) are consistent with our needs (present state).
Fishbone Diagram – An Ishikawa Diagram, or the fishbone diagram, because of its unique
shape, is a way to visually organize and examine all factors that may influence
a given situation by identifying all possible causes that produce an effect.
Process Mapping – This identifies and maps all cross-functional processes, organizations
metrics, and estimated processing time. It ensures a systematic understanding
of the “as is” situation and improvement process.
Backward Process Mapping – BPM is a method of solving a problem by assuming and imagining that your
problem is solved and then working backward. While conventional thinking urges
us to think forward, one step at a time from a beginning point, the working
backward method encourages us to move from an imaginary ideal solution and then
think backward to the beginning point.
Scenario Thinking – Action learning teams are frequently used to explore the roots of an
issue or problem confronting an organization. One of the tools often deployed
in such situations, and which has applicability to case-based learning, is
scenario thinking and planning. Unlike traditional
forecasting methods, the
attempt to predict trends and exert management control over uncertainty,
scenario thinking and planning embraces uncertainty and engages in processes of
prospective thinking about alternative possibilities. The purpose of scenarios
is not to produce predictions or to enhance planning, but to change the mindset
of people who develop and use them.
Systems Thinking – It is a framework to observe interrelationships and study patterns of
change rather than static “snapshots”. Today, systems thinking is needed more
than ever because we are becoming overwhelmed by complexity. Perhaps, for the
first time in history, humankind has the capacity to create far more
information than anyone can absorb, to foster far greater interdependency than
anyone can manage, and to accelerate change faster than anyone’s ability to
keep pace. Certainly, the scale of complexity is without precedent.
Organizations are breaking down despite individual brilliance and innovative
products because they are unable to pull their diverse functions and talents
into a productive whole. The essence of Systems Thinking lies in a shift of
mind – seeing interrelationships rather than linear cause-effect chains and
seeing processes of change rather than snapshots.
About Us
As a Principal Consultant, Sanjeev is credited with pioneering best
practice HR systems and processes for clients. As a Talent Strategist, Sanjeev
partners with organizations hiring managers to find, select, and hire top
talent which provides a foundation for organization's future growth
Contact Us
No:
22, C2, 6th Floor
Hermes
Heritage – II
Shastri
Nagar, Yerwada
Pune
– 411006
Phone
no: 9975689991
Website: http://sanjeevhimachali.org
