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7/26/2019 11 - Jeffrey Schraeder_23 TOCPA_USA_21-22 March 2016 V2
1/40
23rd International Conference of the
TOC Practitioners Alliance - TOCPA
www.tocpractice.com 21-22 March, 201, Tennessee, !"A
TOC Extended to Organization
Design
Jeff Schraeder
Circles of Clarity
USA
March, 2016
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Jeff Schraeder
Experiences: 1966 - Current
Bell Labs Analog to Digital era
IBM Modern Mainframe era
COO of a technology company
Strategic Advisor to the President
Continental Insurance Director of Systems Engineering STK
Entrepreneur:
Company Entir
Engine Performance
Convergent Works
Goldratt Consulting
Circles of Clarity
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Process
Or#ani$ation
Market
Society
Constraints % &here are the'(
People
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&here TOC )its Toda'
Strategy (TOC S&T)
Structure (Organization)
Process (TOC DBR, CCPM, Distribution, etc)
Peope (Manage!ent Practices)
Market "
Society "
T#ese ee!ents are inter$epen$ent an$ iterati%eC#anges in one o' t#e ee!ents i cause c#anges in
t#e ot#ers
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Constraints % *ow do the' interact(
Peope Process
Organization
StrategyMarket
Society
$$resse$ by TOC
$$resse$ by RO
Potentia 'or*ain
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+ina#es
Organization Structure inks t#e strategy to t#e
process Manage!ent principes ink t#e peope to t#e
process
+' t#ese areas are strong, t#e i!pact o' TOC i bea!pi'ie$
(eperience s#os t#at goo$ processes can succee$
e%en in a poor organization an$ t#at a goo$
organization can o%erco!e ba$ processes)
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Or#ani$ation "trctre
-u!ber o' !anage!ent e%es
Manage!ent Practices
Task Co!peity Capabiity o' t#e Peope to #an$e co!peity
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Conditions for Possiilit'
#a%ing a #eat#y organization structure
re.uires/
0n$erstan$ing t#e nature o' ork 0n$erstan$ing t#e capabiities o' peope
0n$erstan$ing be#a%ior
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&hat to Chan#e(
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&hat to Chan#e to/
n organization structure t#at 'its t#e rea
nature o' t#e situation o' getting ork $one t#e strategy, t#e !arket, t#e nature o' t#e
tec#noogy, t#e pro$uct, an$ t#e 'un$a!enta
c#aracteristics o' ork an$ t#e peope #o
#a%e to $o t#e ork
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ildin# an Or#ani$ation
1Reationa t#eories (suc# as TOC) are syste!s o'
i$eas t#at estabis# a %eri'iabe an$ non2arbitrary reations#ip it# t#e ob3ecti%e or$
t#ey appy to4
5$gar Morin 6a !7t#o$e
&or shold e the asic element that dries
or#ani$ation desi#n.
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An Or#ani$ation Constraint
Mismatch etween the compleit' of the tass
that need to e performed and the capailit'of the people performin# the tass.
5''ects o' t#e constraint/
Tasks too si!pe/ ngry, bore$, stresse$
orkers an$ !anagers
Tasks too co!pe/ ngry, scare$, stresse$orkers an$ !anagers
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Matchin#
8
9
:
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*man &or
Try to parse t#is it#out a $e'inition o' 1ork;/
T#at as toug# wor $oing t#e wor t#ey ga%e !e
to $o to$ay at wor
)or this discssion *man &or is defined as/
T#e eercise o' $iscretion, 3u$g!ent, an$ $ecision !aking incarrying out tasks< $ri%en by %aues, an$ bringing skie$
knoe$ge an$ eperience into pay
Mec#anica ork = >orce t#roug# Space
?u!an ork = Decisions T#roug# Target Ti!e
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Principles
Management is full of bad, fuzzy terms. Real science knows that
you have to get particular in order to get something controlledTo !easure ork e nee$/
t#e e.ui%aent to a t#er!o!eter
precisey $e'ine$ concepts an$ ter!s
To !anage ork e nee$/
n organization structure aigne$ to t#e ork
Consistent 6ea$ers#ip practices
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irth of a thermometer
?ot or co$ #a$ no !etric 3ust #otter or co$er
-otice t#at ater c#ange$ %ou!e $ue to #eat @ater cou$ be encose$ in a tube as a toy
-otice t#at t#e c#ange in ater %ou!e asnAt consistent
Mercury c#ange$ %ou!e consistenty it# #eat Mercury cou$ aso be encose$ in a tube
T#e tube cou$ be !arke$ at 'reezing an$ boiing points
T#e $istance beteen t#e !arks beca!e te!perature
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Time "pan
The Thermometer
T#e ongest perio$ t#at can eapse be'ore t#e!anager can be sure t#at #is subor$inate #as
not been eercising sub2stan$ar$ $iscretion in
baancing t#e pace an$ .uaity o' #is ork
+t is a !easure o' t#e size o' t#e 3ob
+t is a !easure o' co!peity
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efinin# the leel of wor
Ti!e span (T#e t#er!o!eter)
Ski an$ eperience
aues
%aiabe training 6ack o' negati%e personaity traits
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Modes of Mental
Processin#
Concrete/ 4&+ 1 % 56
Decarati%e Perceptua2concrete t#inking Cu!uati%e +!agina2concrete t#inking
E Seria Conceptua2concrete t#inking
F Parae bstract2!o$e t#inking
Astract/ 4&+ 7-86
T#eory an$ strategy construction 0sing conceptua abstract
t#oug#ts an$ or$s to pu i$eas toget#er
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&or +eel 1
Ti!espan 0p to E Mont#s
Decarati%e rgu!ent 'ro! enu!eration
T#e !in$ is $eaing it# ork in t#erestricte$ sense o' #at t#e eye can see
Direct output
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&or +eel 2
Ti!espan E Mont#s to 9ear
Cu!uati%e rgu!ent 'ro! cassi'ication
T#e !in$ is $eaing not ony it# #at t#e
eye can see but aso at t#e i!age !akinge%e
Manage!ent $uties
Direct output
Manage$ output
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&or +eel 3
Ti!e Span 9ear to 9ears
Seria rgu!ent 'ro! cause an$ e''ect
T#e !in$ !o%es into t#inking about casses
o' t#ings an$ conceptsManage!ent $uties
+ntegration
Mentoring
Succession panning
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Mtal reco#nition 9rop
T#e 'irst E e%es are a/
Basic Tria$
!utua recognition group
Bui$ing bock 'or arger organizations
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:elationships
Manager to Subor$inate
T#e !anager !ust be capabe o' a$$ing%aue to t#e ork o' t#e subor$inate
T#is !eans t#at t#e !anager !ust be abe to#an$e a #ig#er e%e o' co!peity
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ildin# !p
-et Tria$
@ork e%e
@ork e%e E
@ork e%e F
@ork e%e
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*i#her +eels
Ti!e spans/
@ork 6e%e F 9ears to G 9ears
@ork e%e G G 9ears to H 9ears
@ork e%e I H 9ears to H 9ears
@ork e%e J H 9ears to GH 9ears
@ork e%e K 5instein, Mozart, etc
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";T < Or#ani$ation
:elationship
S&T @6 G Strategy 'or!uation an$ 'uture
t#inking S&T @6 F Con%erting strategy into necessary
con$itions
S&T E @6 E Coor$inating !utipe e''orts toar$st#e goa
S&T F @6 Direct !anage!ent o' processes
S&T G @6 Direct output
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";T < Or#ani$ation
:elationship@6 2G
@6 2F
@6 2E
@6 2
@6 2
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Mana#ement Practices
?iring
ssign!ents
5%auation
Succession Panning
>et >air Pay
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*irin#
0n$erstan$ing task co!peity
5%auating capabiity
Correcty !atc#ing capabiity to co!peity
0n$erstan$ing potentia
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Assi#nments
==T:
Luaity
Luantity Ti!e
Resource
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>alation
re you operating at your !ai!u!
potentia" re your subor$inates pro$ucing t#e re.uire$
.uantity"
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"ccession Plannin#
Manager once re!o%e$ is !entoring #is
$irect reportsA subor$inates Manager once re!o%e$ $eci$es on
pro!otion to net e%e
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)elt )air Pa'
>airy 0ni%ersay >et e%es eist/
Roug#y/
+ E o' 8
++ GG o' 8+++ 8 (t#e regionaNoca stan$ar$ 'or t#is e%e)
+ 8
F 8
+ K 8
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Conclsions
TOC uses boun$ary constraine$ concepts
6ea$ers#ip an$ !anage!ent practices generayack suc# $e'initions
Pro%i$ing boun$ary constraine$ concepts is t#e
'irst step toar$s science
Bui$ing an organization base$ on boun$ary
constraine$ concepts (or 3ust un$erstan$ing t#eorganization as gi%en) en#ances t#e poer o'
TOC
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*ow does this help TOC(
A perceied C> comes from the leel at which 'o
thin aot a prodct or a serice 6e%e T#ings are #at t#ey are an$ canAt be
anyt#ing ese (Luaity, Price)
6e%e T#ings can be gi%en a !eaning an$ acontet (Reiabiity, Ser%ice)
6e%e E T#ere is an aareness o' ot#er contets in
#ic# t#ings can be integrate$ to create aproprietary approac# (Positioning, Reations#ip)
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!p +eelin#
T#e !o$e o' t#inking $eter!ines t#e ay a
co!pany ses TOC soutions create t#e possibiity to c#ange t#e
contet aroun$ a sae
Raising t#e !o$e o' t#inking is necessary to ac#ie%esaes success
Raising t#e !o$e o' t#inking o' t#e co!pany is
necessary 'or $e%eoping ne DC5s
n$ so it goes
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Implementation of TOC
5%auate t#e capabiity o' t#e peope to
#an$e c#anges in $ecision !aking Tayor t#e presentations an$ training to
!atc# t#e capabiity o' t#e peope
Baance t#e rate o' c#ange to t#e capacity o'
t#e peope to absorb it
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:eferences
Re.uisite Organization 5iot a.ues
?u!an Capabiity a.ues, Cason
5ecuti%e 6ea$ers#ip 5iot a.ues
Core +nternationa 6e%es o' @ork T#e Disrupti%e Co!petence >abian an
rek#e!