I smile and start to count on my fingers: One, people are good. Two, every conflict can be removed. Three, every situation, no matter how complex it initially looks, is exceedingly simple. Four, every situation can be substantially improved; even the sky is not the limit. Five, every person can reach a full life. Six, there is always a win-win solution. Shall I continue to count?
Theory of constraints is a business philosophy which seeks to strive towards the global objective, or goal, of a system through an understanding of the underlying cause and effect dependency and variation of the system in question.
The global objectives are best accomplished through a focussed process of holistic thinking, otherwise known as systems thinking. Dr. Goldratt outlined that managing systems means managing flows. Systems and organizations are built for purpose. Management role is to bring their systems closer to their goals and hence continuously strive to improve the performance of the areas under their responsibilities and pursue higher and higher results.
Dr. Goldratt was an advocate of simple practical solutions and had a strong desire to help managers and companies in their pursuit of continuous improvement.
TOC is equally applicable to for-profit and not-for-profit organizations for; manufacturing distribution, project management, marketing, sales and design & strategy