Identify a "giant” not a choopchick
Henry Ford, Frederick Taylor – administrative approach.
Elton Mayo (1920) – “Human relationship” approach in management.
Eliyahu Goldratt – Harmony creation in organization due to conflicts elimination and erroneous assumption rejection.
Identify the enormity of the area not addressed by the giant
Administrative approach in personal management proceeds from assumption, that structure, business processes, rules and measurements have a direct and predictable effect on the performance. They determine people’s behavior and therefore company’s performance.
“Human relations school of management” proceeds from assumption, that good performance is the product of good interpersonal relationship. People behavior is predetermined by personal traits, psychological needs and mind-sets.
Both approaches seek to control the individual. These approaches don’t allow getting real cooperation among the people. But we need real cooperation. Cooperation is a people behavior which gets significant results.
TOC TP allows growing harmony in organization step by step by elimination of root conflicts and increasing level of cooperation regarding company’s goal. But the TOC solutions don’t eliminate administrative approach fully. Administrative approach survives and probability to return to local measurements and competition survives too. [Kothekar, ТОСICO Conf, 2016г.].
Get on the giant’s shoulders
TOC Flow solutions lead to grow the people’s cooperation. We identify physical constraint, we decide how to exploit constraint, how to subordinate everything else to the decisions and we have clear, transparent priorities. Visualization of flow is a good tool for synchronization and cooperation. Cost accounting avoidance, throughput accounting using, EC conflicts resolution among people and divisions, avoiding people blaming, six levels of resistance overcoming and Change Matrix Method are helping to build cooperation in company too.
Identify the conceptual difference between the reality that was improved so dramatically by the giant, and the area untouched.
Using administrative approach traditional company gets good results. The vast Majority of company in the world is using it. But however such company fall to trap of business complication. They create more new structures, more new measurements and incentives. Vicious cycle is emerging: complication is growing; personal satisfaction going down and company performance are not increasing. The situation is getting worse with clients requirement increasing and speed of market changing increasing.
Human relationship approach doesn’t create real cooperation too. At last, they blame people in bad attitude, wrong mind-set or wrong personal traits.
Many transformations on TOC principles get a significant performance results, but they have high probability to crumble. Sustaining the TOC processes is deﬁnitely a huge challenge.
Identify the wrong assumption
- “Structure, rules and measurements have a direct and predictable effect on performance,
“Some people couldn't take proper decisions. Proper decisions are getting by managers.
- Managers must have a power.”
- «To change behavior we need change culture and mindset»,
- “People behavior is predetermined by personal traits, psychological needs and mind-sets”
All of the above assumption can be disprove. The behavior of human it is choice (decision) which he/she deal in the specific context. Context is represented by human perception of his interests, rules and structure of company. Power is not the attribute of position. It is a possibility to change the context for other people. People can take proper decisions related to the accountability if they will get the power.
Conduct a full analysis to determine the core problem, solution, etc.
The presentation are discussed vast presented in modern organizations conflict among actions directed on administration (structure, rules and incentives improvement) and actions directed to human relationship development (team building, events, celebration of all kinds, etc.). This conflict is core conflict for some organizations.
The breakthrough solution is the cooperation context creation. This context is a developing condition for cooperation and synchronization among people and divisions. The flow solutions of TOC on 5FS created the part of such context.
Supposed solution includes not only hierarchy avoidance, but empowering big amount of people or all the people by the power to change context in the area of accountability. The manager’s role is changed and consists in helping to other people. Cooperation and power distribution look naturally in small groups. Thereby small group’s creation is the part of solution and cooperation context creation.
People are different. It is possible to emerge disputes and contradiction in decision making process. Therefore the part of solution is the general purpose, beliefs and principles acceptation and tools for conflicts resolution learning.
We already have lot examples of self-government teams in the world (agile, holacracy, QRM, circles of quality, etc.).
In TOCICO 2016 conference Mr. Watanabe has presented results of significant Flow solution improvement due to learning and involvement all the personal to decision making process. They implemented team work on basis of simple flow tools (WIP board) and TP (what to change, what to change to, how to cause the change?).
The author of presentation during the last year implemented principles of cooperation and self-government in consulting company and during the last six month in manufacturing and Retail Company.