In this episode of Work Matters, Thomas and his guest Rami Goldratt explore the theory of constraints, its applications, and its impact on organizations. Rami currently serves as CEO of Goldratt Consulting. Over the years, Rami has been involved in consulting engagements with retail, automotive, textile, chemical, and service industries all around the world. Rami is considered one of the most influential leaders of the TOC body of knowledge, specifically in Sales and Marketing, where his work has become standard practice. Rami is also among the pioneers in developing and implementing TOC applications for the education system – guiding of teachers around the world in applying the TOC thinking processes for children’s education.

In this conversation, we explore:

The Big Idea of the Theory of Constraints

- The core concept of TOC is maintaining focus on key constraints that govern the flow of work in a system.

- Identifying and addressing these constraints can significantly improve organizational throughput.

- While the idea is simple, implementing it effectively is not always easy.

Application examples for the application of TOC

- Heavy Engineering: A company manufacturing high-pressure vessels identified welding as a key constraint. By optimizing the workflow and ensuring welders had everything they needed (full kit), they increased throughput by 20%.

- Airlines: Delta Airlines focused on constraints such as gate availability and pilot scheduling to improve flight operations.

- Retail: Ensuring the right merchandise is at the right place at the right time can be a key constraint in retail environments.

Internal vs. Market Constraints

- Constraints are not always internal; market constraints, such as developing better value propositions, can also limit growth.

- Exceptional value is created when an organization can remove significant limitations for their customers.

Impact on Organizations

- Financial Impact: Addressing constraints leads to higher throughput and a healthier bottom line.

- Cultural Impact: Properly managing constraints reduces internal conflicts and disharmony.

- Organizational Harmony: Aligning different sections of the organization around the key constraints creates a more harmonious and effective work environment.

Challenges in Applying TOC

- Bad Multitasking: Common in project-oriented environments where people switch between tasks without completing any, leading to inefficiency.

- Fragmented Workflows: Over-fragmentation of work can cause synchronization issues and misaligned priorities.

- Resistance to Change: Employees and managers may resist new practices and policies that TOC requires for effective implementation.

Design and Scaling of Organizations

- Standardization vs. Non-Standard Work: Standardizing work to reduce dependency on experts is key for scaling, especially in non-standard work environments.

- Expert Utilization: Freeing up experts from non-critical tasks and focusing on training less experienced employees is essential for scaling.

- Organizational Design: TOC helps design organizations that can scale seamlessly by focusing on constraints and removing bottlenecks.

Relationship with Other Methodologies

- TOC is complementary to other methodologies like Lean and Six Sigma. It helps identify where to focus these tools for maximum impact.

- TOC provides a holistic view of the system, guiding where to apply other methodologies effectively.

Overcoming Vicious Cycles

- Identifying and addressing practices and policies that create recurring problems is crucial.

- Example: Bad multitasking leads to longer task durations, growing backlogs, and increased pressure to release tasks quickly, perpetuating the cycle.

To learn more about TOC,...

In this episode of Work Matters, Thomas and Tina Robinson discuss why engagement matters for leaders and how to make it personal.

Tina is the founder of Work Joy, a leadership development and coaching boutique. For 25 years, Tina has played at the intersection of humans, technology, and work. In her corporate days, Tina directed global change management initiatives, overhauled HR functions, transformed team cultures, implemented workforce technology solutions, created and facilitated leadership development programs, and spearheaded complex sales operations programs for organizations such as PwC, Toyota, and SAP. As CEO of WorkJoy, Tina builds on this diverse expertise, making content engaging and relevant as a facilitator and unleashing individual potential as a coach. As a strategic advisor, she applies her systems thinking to align people, processes, and technology with business priorities, helping clients secure the executive commitment needed to drive critical outcomes. Tina is an honors graduate of the University of Virginia (BA) and University of Michigan (MBA) and is certified through the International Coaching Federation. She is a thought leader online and in print, is a sought-after and highly rated speaker at international conferences, and is a former adjunct professor at Loyola Marymount University.

In this conversation, we explore:

Why employee engagement matters

- Engagement is the emotional and social connection employees have with their work.

- High engagement leads to better performance, reduced sick days, and higher revenue.

- Organizations with high engagement levels see better customer service and overall results.

What is the current state of engagement

- Gallup's latest survey shows engagement is at its lowest since 2013, with only 30% of employees feeling engaged.

- The majority of employees (70%) feel disengaged, highlighting a significant challenge for organizations.

What are common pitfalls of engagement programs

- Many organizations view engagement as an output rather than an input, leading to ineffective programs.

- Engagement is personal and varies from individual to individual; broad programs often fail to address these unique needs.

Why and how to personalized engagement

- Leaders should have personal conversations with employees to understand what engages them.

- These conversations should be ongoing, not just during the hiring process.

- Understanding individual motivators and needs is crucial for maintaining engagement.

How leaders can facilitate engagement

- Leaders should create environments that support engagement conversations.

- Engagement is a two-way street, requiring both leaders and employees to communicate openly.

- Leaders should be brokers, aligning organizational needs with employee desires.

- Invest in training leaders to have meaningful engagement conversations.

- Use engagement surveys as a tool, but ensure follow-up actions are taken based on the results.

- Focus on metrics that directly contribute to business outcomes, such as turnover and retention of high performers.

- Creating a psychologically safe environment is key to fostering engagement.

- Trust is built through consistent, supportive interactions between leaders and employees.

Engagement is a challenge but not impossible to improve with the right strategies. Personalized approaches and fostering open communication are essential. Tina emphasizes the importance of making engagement personal through better conversations.

To learn more about Tina and her work

- Connect with Tina Schust Robinson on LinkedIn: https://www.linkedin.com/in/tinaschustrobinson/

- Email Tina for...

In this episode of Work Matters, Thomas talks with Bruce Rosenstein, the managing editor of the acclaimed business journal ‘Leader to Leader’ and a longtime student of Peter Drucker's work, about the relevance of Drucker's management theories in today's world.

Bruce first got introduced to Drucker’s ideas in the mid-1980s while studying library management at Catholic University, where he encountered Drucker's textbook, "Management: Tasks, Responsibilities, Practices."

The discussion explores some of Drucker’s most important ideas: designing work for knowledge worker, innovation, systematic abandonment, and the role of leaders.

Despite technological advances such as AI and the internet, Drucker's timeless concepts of effectiveness and knowledge work remain applicable. Drucker's insights into being effective, originally detailed in "The Effective Executive," continue to guide leaders in various fields.

Drucker was a pioneer in recognizing the importance of knowledge work in the 1950s. He also believed knowledge workers should design their own jobs, focusing on accountability, responsibility, and effective time management. The role of managers is to support employees in shaping their roles to enhance productivity and fulfillment.

Drucker's concept of "the future has already happened" suggests that current innovations, such as AI and electric vehicles, will have long-term impacts that organizations need to anticipate and adapt to to stay relevant.

Drucker's idea of "systematic abandonment" involves regularly evaluating and discontinuing activities that no longer serve the organization’s goals. Combining this with continuous improvement (Kaizen) can lead to innovative and efficient practices.

Drucker advised leaders to understand their role in the big picture of the organization and to focus on relationships, continuous learning, and effectiveness to drive personal and organizational success.

He also emphasized the importance of achievement over financial gain, suggesting that accomplishment can be a powerful motivator. Though not explicitly an advocate of servant leadership, Drucker’s ideas align with creating conditions for others to succeed.

Bruce Rosenstein shares valuable insights on how Peter Drucker's timeless ideas can still guide leaders today in making work more productive and meaningful. Drucker's principles of effectiveness, innovation, and systematic improvement continue to offer valuable guidance for modern organizations.

Follow Bruce on LinkedIn for daily Drucker quotes: https://www.linkedin.com/in/bruce-rosenstein/

Visit Bruce’s website to learn more about his work: https://brucerosenstein.com

Bruce’s two books about Drucker can be found here:

• Create Your Future the Peter Drucker Way (https://www.amazon.com/Create-Your-Future-Peter-Drucker/dp/0071820809)
• Living in More Than One World (https://www.amazon.com/Living-More-Than-One-World/dp/1576759687)