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The Goal: A Process of Ongoing Improvement - 25th Anniversary Edition

Eliyahu M. Goldratt · 6 HN comments
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Amazon Summary
*A Graphic Novel version of this title is now available: "The Goal: A Business Graphic Novel" 30th Anniversary Edition. Written in a fast-paced thriller style, The Goal, a gripping novel, is transforming management thinking throughout the world. It is a book to recommend to your friends in industry - even to your bosses - but not to your competitors. Alex Rogo is a harried plant manager working ever more desperately to try improve performance. His factory is rapidly heading for disaster. So is his marriage. He has ninety days to save his plant - or it will be closed by corporate HQ, with hundreds of job losses. It takes a chance meeting with a professor from student days - Jonah - to help him break out of conventional ways of thinking to see what needs to be done. The story of Alex's fight to save his plant is more than compulsive reading. It contains a serious message for all managers in industry and explains the ideas, which underline the Theory of Constraints (TOC), developed by Eli Goldratt. One of Eli Goldratt s convictions was that the goal of an individual or an organization should not be defined in absolute terms. A good definition of a goal is one that sets us on a path of ongoing improvement. Pursuing such a goal necessitates more than one breakthrough. In fact it requires many. To be in a position to identify these breakthroughs we should have a deep understanding of the underlying rules of our environment. Twenty-five years after writing The Goal, Dr. Goldratt wrote Standing on the Shoulders of Giants. In this article he provided the underlying rules of operations. This article appears at the end of this book. Like Mrs. Fields and her cookies,The Goal was too tasty to remain obscure. Companies began buying big batches and management schools included it in their curriculums. Fortune Magazine A survey of the reading habits of managers found that though they buy books by the likes of Tom Peters for display purposes, the one management book they have actually read from cover to cover is The Goal. The Economist "Goal readers are now doing the best work of their lives. Success Magazine A factory may be an unlikely setting for a novel, but the book has been wildly effective.: Tom Peters Required reading for Amazon's Management.
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Personally I think KPIs (particularly when you are asking the question "how do I adopt KPIs") are toxic.

In a non-startup company there is generally one bottleneck that holds the organization back and has to be controlled

https://www.amazon.com/Goal-Process-Ongoing-Improvement/dp/0...

In a startup company or if you are trying to develop a "revolutionary" product there are usual several bottlenecks that need to be attacked. For instance going to the moon you have to solve problems from a list such as

  * propulsion
  * navigation
  * life support
if you are looking at a 10% improvement you need to find the one bottleneck (e.g. "The Goal") if you need to get a 10x improvement you will hit several bottlenecks on the way there and the writings of W.L. Livingston apply

https://www.amazon.com/Have-Fun-at-Work-Livingston/dp/093706...

When you use goals to "destroy the competition" or "change the world", goals are a powerful technique. If you are setting goals because somebody told you to set goals or somebody else sets goals you are going to drive yourself to distraction.

I'm reminded of the story of the joint interview with Bill Gates and Warren Buffet.

The interviewer asked each of them to write down the one thing that contributed most to their success. Both independently wrote "focus".

https://www.inc.com/marc-emmer/bill-gates-warren-buffett-rev...

I remember reading the book The Goal in business school. What impressed me the most, was that the most efficient path to achieving a goal, is often non-intuitive, and sometimes even involves making destructive choices - choices that outside observers would find absurd and distasteful.

https://www.amazon.com/Goal-Process-Ongoing-Improvement/dp/0...

It's not only about choosing a singular goal, it's also about meticulously calculating your path there.

Don't follow the herd. The pack is FULL of jack-of-all-trades that have a smattering of random skills they picked up. Make literally every life choice with directionality and planning.

This is a great companion to "The Goal" and "The Phoenix Project," both of which use fictional narratives to illustrate best engineering practices in the context of saving a (fictional) business.

https://www.amazon.com/Goal-Process-Ongoing-Improvement/dp/0...

https://www.amazon.com/Phoenix-Project-DevOps-Helping-Busine...

Well I don't have a MBA :D, but I do have a masters degree of a similar orientation (Masters in engineering management). I can only recommend the ones I have read and found of value:

[1] Crossing the chasm (Marketing related)

[2] Peopleware (HR related)

[3] How to win friends and influence people (HR related)

[4] The Goal (Business related)

[5] Critical chain (Project management related)

[6] Who moved my cheese (Change management related)

and any of the lean / agile businessy books for ex.

[7] The lean startup

These might not be viewed as traditional MBA material, but my course featured some of these along with more traditional academic books on subjects like financial management, people management, operations etc. I can provide these textbooks to you as well if you like.

*Amazon links just for convenience, no affiliation.

[1] http://www.amazon.com/Crossing-Chasm-3rd-Disruptive-Mainstre...

[2] http://www.amazon.com/Peopleware-Productive-Projects-Teams-3...

[3] http://www.amazon.com/How-Win-Friends-Influence-People/dp/06...

[4] http://www.amazon.com/gp/product/0884271951?keywords=eli%20g...

[5] http://www.amazon.com/Critical-Chain-Eliyahu-M-Goldratt/dp/0...

[6] http://www.amazon.com/Who-Moved-My-Cheese-Amazing/dp/0399144...

[7] http://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-...

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