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)

In this episode of Work Matters, host Thomas Bertels welcomes Steve Crom, former chairman and partner emeritus of global consulting firm Oxygy. With over four decades of experience in transforming work and improving productivity for leading global companies, Steve shares his insights on managing across cultures and how national culture influences how work gets done. Drawing from his personal experience as well as research by Fons Trompenars, Steve offers a practical framework for understanding differences in national cultures by looking at two dimensions: Structure (egalitarian vs. hierarchical) and focus (people-centered vs. task-focused). He describes the four basic archetypes and explains why understanding cultural differences is crucial for global leaders to effectively manage and motivate their teams.

Thomas and Steve explore the challenge of balancing global standardization with the need for local adaptation and ownership. Steve explains that while global companies benefit from economies of scale and standardized operating models, these can sometimes conflict with the unique cultural characteristics of different regions. He suggests a pragmatic approach where countries are clustered into archetypes based on similarities, allowing for a more manageable number of models that can be tailored to fit the specific needs of each cluster.

Emphasizing the importance of involving local employees in the design and implementation of solutions to ensure they are culturally appropriate and effective, Steve shares an example of a sales organization operating in multiple European countries that successfully optimized local processes by first asking teams from each country to design a solution for their local challenge - and then share that solution with their European peers, inviting them to adapt what makes sense - and reject what does not.

Steve concludes by discussing the practical implications for global leaders, the importance of humility and curiosity, and the value of helping people achieve their goals in ways that make sense to them, avoiding the imposition of one-size-fits-all solutions.

Overall, this episode of Work Matters highlights the complexities of managing across cultures and underscores the importance of cultural sensitivity and adaptability for global leaders. Steve/s experiences and insights offer valuable lessons for anyone looking to navigate the challenges of a globalized workplace effectively.

To learn more, we suggest the following article:

https://www.isixsigma.com/europe/using-six-sigma-europe-cross-cultural-perspective/

In this episode, host Thomas Bertels talks to Dennis Adsit, president of AdsumInsights, about employee development.

Dennis explains why leaders should prioritize developing their employees. He starts by emphasizing the significance of people development beyond the altruistic perspective. Leaders who focus on developing their teams not only leave a lasting legacy but also benefit from improved team productivity.

A key point in the conversation is the lack of a coherent mental model for people development among many leaders. Dennis stresses that having a framework or mental model helps leaders systematically approach development rather than relying on random or haphazard methods, and shares his mental model for people development, which consists of five crucial elements:

1. Intentionality: Dennis argues that leaders don't develop people directly; instead, they create the conditions that facilitate self-development. Leaders should encourage their employees to be intentional about what they want to learn and achieve. He references Reid Hoffman's concept of a "tour of duty," where employees set specific learning goals for each project or role, enabling more targeted feedback and growth.
2. Setting Targets: The second element involves defining what good, better, and best performance looks like. This approach provides clear expectations and helps employees understand what is required to excel in their roles. Dennis recounts how Ben Horowitz's "Good Product Manager, Bad Product Manager" post remains a valuable resource because it clearly outlines the standards for success, emphasizing the importance of having a benchmark for performance.
3. Operational Reviews as Dojos: Dennis proposes that leaders should treat operational reviews as learning grounds, akin to martial arts dojos. In these settings, employees present their progress, receive feedback, and learn from their peers. This approach fosters a culture of continuous improvement, transparency, and accountability, even in remote or hybrid work environments.
4. Tell Your Truth: Dennis emphasizes the importance of honest feedback. He acknowledges that feedback is inherently judgmental but necessary for growth. Leaders should focus on both strengths and areas for improvement, ensuring that performance conversations are balanced and constructive. He suggests that employees should summarize their understanding of feedback and outline their action plans, which ensures clarity and accountability.
5. Leveraging the Job for Development: The final element highlights that the job itself is the primary driver of development. Leaders should ensure that roles are challenging and provide opportunities for growth. Dennis notes that being stretched outside one’s comfort zone is crucial for development and that leaders should look for ways to keep their teams engaged and continually learning.

The episode concludes with a discussion on the "generosity gene," a concept tracing back to GE’sJack Welch. This meta-skill involves a genuine delight in the success of others and is critical for effective leadership. Leaders who possess this trait are more likely to foster a supportive and growth-oriented environment, ultimately leading to a more motivated and capable team.

Dennis' insights offer a comprehensive framework for leaders seeking to enhance their team's development and effectiveness. His practical advice on fostering intentionality, setting clear targets, creating learning environments, providing honest feedback, and designing challenging roles provides a valuable blueprint for leaders looking to make a lasting impact on their organizations.

For more information on Dennis' work, including executive coaching and organizational consulting, listeners can visit his website:

In this episode, Thomas and Ellen Frank-Miller, the founder of the Workforce and Organizational Research Center (WORC), explore the topic of job quality.

Ellen explains the mission of WORC - creating an economy where every worker has a job worth having, and shares insights from a comprehensive review of over 3,000 peer-reviewed articles on managerial and organizational science. She highlights key job characteristics such as perceived support from the organization, supervisors, and coworkers, as well as autonomy, wages, benefits, and opportunities for representation. These factors are strongly correlated with human capital metrics like turnover intention, engagement, and burnout, which in turn affect financial performance.

Exploring the linkage between frontline job design quality and business results, Ellen shares findings from a study funded by the Ford Foundation’s that looked at human capital management in private equity. Contrary to the initial belief that human capital management in private equity focuses solely on executive search, the study revealed that value creation often depends on roles at the bottom of the org chart. Ellen shares an example where a private equity firm had to focus on improving job quality for truck drivers to retain them and support business expansion, underscoring the critical role of frontline workers in achieving business success.

The conversation also touches on the challenges of measuring and improving job quality, especially since factors like turnover and engagement don't appear directly on financial statements. Ellen introduces the Worthwhile Jobs Index, a diagnostic tool developed by WORC to help companies identify strengths and opportunities in their human capital. This tool provides a quick, actionable assessment of job quality, allowing companies to track progress over time and correlate improvements with financial performance. She also points out that while there is ample evidence supporting the benefits of high-quality job design, many organizations struggle to invest in this area due to capacity constraints and a lack of prioritization. She emphasizes the need for a shift in perspective, treating workforce issues as operational problems that can be systematically addressed.

She stresses that improving job quality requires a holistic approach and a commitment to understanding and addressing the needs of workers at all levels of the organization, and suggests several resources for leaders looking to improve job quality. Ellen concludes with encouraging leaders to start small, focus on achievable changes, and communicate effectively with their workforce to build momentum for larger improvements. She highlights the importance of senior leadership support in driving these initiatives and the need for a proactive, data-driven approach to job quality.

To learn more about Ellen and WORC, please visit https://www.worcimpact.com

The following links provide additional information about the work Ellen and her team are doing and why private equity firms are starting to pay attention.

https://impactalpha.com/the-next-frontier-of-private-equity-value-creation-better-jobs-for-frontline-workers

https://impactalpha.com/blackstones-embrace-of-employee-ownership-signals-a-shift-in-private-equity-and-in-the-power-of-workers/

In this episode host Thomas Bertels welcomes Jeff Wald to discuss his book, "The End of Jobs." Jeff is the founder of WorkMarket, an enterprise software platform for managing freelancers, as well as several other tech companies. An active angel investor, startup advisor, and speaker, he previously held leadership roles in Financial Services with Barrington Capital Group, Glen Rock, and JP Morgan.

We explore the forces driving the growth of on-demand work and the challenges preventing many companies from leveraging gig work to optimize their cost structure, including clarity of the regulatory environment. We also talk about the factors determining whether a job should be full time or contract: ramp-up time, need for institutional knowledge, level of organizational integration required, and duration of the work, and unpack why certain industries - like manufacturing - aren't set up for gig workers.

We discuss how the adoption of AI and robotics will impact the overall job market. Jeff argues that over time, there will be no net loss of jobs but actually lead to more jobs being created, but that we will see a huge shift in the way services are imagined, delivered, and charged.

In closing, Jeff predicts that on-demand work will continue to grow and eventually could account to 30% of the job market, barring significant regulatory reforms.

For more on Jeff's work and his books, visit his website https://www.jeffwald.com.

In today's Work Matters, Thomas talks with Dart Lindsley, head of Global Process Excellence for People Operations at Google. He previously led the HR Transformation Planning and Analysis organization at Cisco Systems and is the host of the popular "Work for Humans" podcast.

In this discussion, Dart unpacks what makes the middle manager role so challenging. He explains how managers are pulled in two different directions: balancing the needs of the business versus the needs of the team. By not equipping managers to deal with both sides of that equation, companies miss a significant opportunity for improvement.

Dart shares how managers can source work that maximizes value for both the business and their team by treating work as a product in a multisided marketplace. He advocates for managers to become a broker to win work from the organization that matches team members' competencies and interests and to allocate that work across the team to improve the day-to-day experience of work. Thus, the middle manager evolves into a designer - crafting a work product that is increasingly desirable and satisfying for his/her team that also delivers increased value to the company.

Dart reveals how managers can preserve the degrees of freedom - for themselves and their teams - while staying in alignment with the organization's strategic direction. By not bragging about personal over-achievement and focusing on process excellence, a manager can instead "lead from the sewer" and become someone that gets things done. Dart acknowledges the sacrifice it takes to make much of the work "illegible" but says true success for a manager lies in seeing the team thrive in the short-term in order to reap long-term benefits like more freedom for everyone and increased career advancement for team members.

He highlights the competencies of an effective middle manager which include establishing trust horizontally, being straightforward and true to your word, and not being threatening, or overly ambitious. By putting the success of your peers above personal advancement, a manager can design and deliver work that team members love that also benefits the organization. He stresses the need for managers to remain focused on the strategic direction of the company and also be an exemplary model of change in that direction.

For more on Dart and his "Work for Humans" podcast, visit dartlindsley.com. You might also enjoy the first appearance of Dart on our podcast, where he talks more about the idea of work as a product (Season 2 episode 1). Here is the link: https://www.youtube.com/watch?v=QKrZw1nqK2I.