Showing posts with label Choice. Show all posts
Showing posts with label Choice. Show all posts

Friday, April 12, 2013

Our mind is the biggest bottleneck. Think simple!



Dr. Eliyahu Goldratt
The Choice
Productivity & Quality Publishing Pvt Ltd, 2009. pp. 173, Rs. 269



The Choice is yet another gem from the author of “The Goal” and “It’s Not Luck”, Dr. Eliyahu Goldratt, famous for his Theory of Constraints. This is one of the last books written by Dr. Goldratt in his short illustrious life.
The Choice is a natural progression from the two earlier books. In the first he enlightened readers about the concept of identifying the key constraint in a system and trying to resolve it for better output. While in the latter, he went a step ahead in explaining how to handle complex problems using the cause and effect method. Once we define all the probable causes, we can pinpoint the root cause and go about eliminating it.
The brilliance of this book lies in the basic message that people perceive business to be something extremely complex and thus requiring complex solutions for challenges. The honest fact is business is inherently simple if we look properly. The reason for this mindset lies in our inability to draw a proper cause and effect relationship between business variables and to analyze the common trends. All it requires is a dose of common sense and a keen eye for detail. Dr. Goldratt challenges the readers to think from a fresh perspective and shed all the old long-held notions and assumptions in the process to develop a fresh vision. He suggests that if we have clarity of thought, we can surmount any kind of conflict and come to a harmonious outcome.
Dr. Goldratt professes the concept of “Inherent Simplicity” in this book. A remarkable quote that he mentions explains the meaning – “As Newton said: when you dig deeper, you will find out that nature is simple and harmonious with itself.” He proposes that we pursue a scientists approach in problem solving by designing a system and building relations instead of looking at issues in isolation.
Look at the following diagram, which system is complex? The first reaction is to say System B; however it is System A which is more complex if we consider the systems approach to degrees of freedom. 

In System B, if we touch one point we can impact the entire system which is not the case with System A. Thus, once we identify the root cause and fix it, we can see remarkable change in the outcome. He suggests that there are selected few reasons for inefficiency in business and stunted growth – our idea of everything being complex which stops us from looking for simple solutions, our tendency to conceal the core problem by focusing on multiple fringe issues (which increases the sense of complexity) and the worst of all is our propensity to blame everyone for the problem but ourselves. The knowledge imparted in this book can be applied in all kinds of industry segments with similar levels of success. If you look around, you will be able to identify the situations highlighted in the book.
Through a series of concentrated conversation with his daughter Efrat, Dr. Goldratt provokes his readers to find harmony in their environment through simple thinking. He asserts that there is always a scope to improve and create opportunities without getting bogged down by obstacles which are all creation of our mind. People can achieve astounding results by creating a win-win situation with their business collaborators, suppliers and stakeholders. Here he cautions the readers to first identify the “wins” for the other party. This builds trust. Often we try to search for our wins and then selling the idea to our business partners thus hitting a road block.  
The foundation of this book is an internal report titled “Freedom of Choice” by Dr. Goldratt written for his own consultancy in 2007. 
I strongly recommend this book to business owners and senior management of companies who are keen to create exponential growth of their business. The contents are most suitable for people who have strong understanding of manufacturing industry without which you will not be able to fully leverage the power of the contents of this amazing book.
Eliyahu Goldratt is a well-known scientist, educator and business guru. His Theory of Constraints (TOC) is part of the management lectures of leading business school MBA programs all over the world. Readers will derive tremendous value and business insight from the discourse in this remarkable book. However, this book will require your patience and attention and it is not meant for all. One cannot read the whole book in two hours and learn any valuable lesson. Unlike his other books, this one is more in-depth and provokes us to peacefully think and ponder, to identify similar issues in our own business and empower us to make some ground breaking changes in our approach to increase our revenues and grow. I highlighted parts of the book while reading it for the first time and go back to it quite often when I come across obstacles in my workplace. It gives me a definitive direction and inspiration to come out as a winner.
Published in TISA April 2013 Issue.

Tuesday, April 3, 2012

Why IT Adoption is no longer a CHOICE but NECESSITY for MSMEs

Doing business in today's world requires well-set systems with various measures and counter measures. Everything needs to be process driven if one wishes to maintain control over the enterprise. The systems may be proper logical or scientific one or just a “system” but there has to be one because that is what tells everyone how to work and manage the functions. But today the business environment and the influence of other extraneous factors have become highly enmeshed and complex. This makes running an enterprise a greater challenge especially for smaller players with limited resources notwithstanding the fact that it is much more complex for the larger players. Thankfully we have several IT/ ICT solutions today to help us find our way through the forest.
But there are skeptics who think that need for IT in business is highly overrated and unnecessary. For those who still question productivity gain can diligently calculate and do accounting of time and money invested in physical management of data vis-à-vis electronic ones.
Published in April 2012 issue of SMEWORLD. Click Here