Theory of Constraints

The Theory of Constraints, or 'constraints management' focuses efforts on finding and exploiting the true leverage points of a system for maximum effectiveness.

TOC Basics

At its heart, the Theory of Constraints (TOC) searches for the fundamental constraints of a system… its root causes…

“A system’s constraint is nothing more than what we feel to be expressed by these words: anything that limits a system from achieving higher performance versus its goal.” (Goldratt 1988, p. 453, 1990, p. 4)

In this way, TOC allows us to target critical leverage points, or bottlenecks, within the system at hand.

See Theory of Constraints Cartoon Demonstration.

Understand the TOC theory distinction between Strategy versus Tactics. And see how does strategy and tactics differ.

“The TOC approach epitomises systems thinking: a philosophy that recognises that the whole is much more than the sum of its parts, and that a complex web of interrelationships exist within the system.” (Mabin and Balderstone 2003, p. 570)

TOC Tools

TOC employs logical thinking through several core toc tools:

Current Reality Trees

The Current Reality Tree allows you to deduce the core constraints of your life, business or marketing projects.

Future Reality Trees

Conflict Clouds

Pre-requisite Trees

Transition Trees

Strategy & Tactics Trees

But sometimes the cold calculated logic of CRTs and FRTs is not enough…

What about the intuitive, the inspired, the new paradigm, the disruptive innovation…

Deductive discovery is necessary, but not sufficient. Inductive discovery can lead to new possibilities more quickly.

For this, we can work with the Strategy & Tactics Tree, which takes an aspirational approach to whatever the situation.

See TOC Strategy and Tactic Trees

TOC Applications

Discussing Theory of Constraints in Service Based Organizations

Balanced Scorecard versus Theory of Constraints.

TOC Financial Model for Whole Business ROI Optimisation

Business Process Re-engineering and Theory of Constraints.

Video on today's economy with Eli Goldratt.

TOC in Sales and Marketing

See individual posts:

Viable Vision: Transforming Total Sales into Net Profits.

Theory of Constraints in Marketing Management.

TOC Marketing

Introducing TOC-Marketing to clients

The Unrefusable 'Mafia Offer' for Marketing.

How To Create A Mafia Offer

Theory of Constraints for Sales Management.

See more of my Theory of Constraints posts via my TOC tag page, or visit theTOC Marketing Mafia Offer main page.

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