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Thoughts on Systems Thinking and Theory of Constraints

Predicting the Future

Most of the time the problems we are trying to solve are of our own making. The actions we took or processes we created in the past were not wrong, but the system changed, and now we must deal with the problems this has created. The challenge is, we could end up making matters worse, creating an even bigger problem for our future selves. If we have analysed our current situation and even identified and resolved a core conflict we are in a good position to solve the root cause.

The Floor is Lava

The theory of constraints suggests that there is an underlying conflict behind why a system stays as it is. The root cause isn’t removed because it is seen as integral to how the world works. There is perhaps a compromise or accepted way of doing things which are thought to always be there, and focus is therefore directed elsewhere and workarounds become standard practice. Whether we are aiming to resolve the tension of reward vs risk or trying to balance customer vs business needs, Goldratt states that a solution is available which is a win for both sides, not just a compromise.

Finding The Cause

When we understand our goal , we can identify the issues which are preventing us from reaching that goal. These issues are usually symptoms of underlying problems, rather than the cause. To tackle the root cause we can use a Current Reality Tree to follow the cause-effect-cause links until we identify one core problem. Let’s look at the problems our friends Tim and Lex are having; by examining their current reality we may be able to identify the core problem which has led to it.

Making goals clearer

Early in my career, I created web-based solutions for businesses. It was not uncommon for someone to approach with their great new idea, it usually began: Like e-bay but for… I see a similar trend these days, especially when looking at crowdfunding investments, this time: Like uber but for… The comparison with uber or e-bay is to create a shared understanding. There is an assumption that the traits which they admire in the referenced business are obvious to others.

Career Planning

I like having a rough plan to help stay focussed. Often the challenge is working out what the goal is. I have found this is especially difficult for someone when asking what they want to do with their career. The question is quite open-ended, and it helps to have structure to pin down their thoughts. Prerequisite Trees are a fantastic tool to solidify thoughts into a plan. It is in forming a career plan that they were first introduced by Goldratt in his book: It’s Not Luck.

Fitting them together

As discussed in the previous post the tools include: Prerequisite Trees: For determining steps and order to achieve a goal Goal Trees: For specifying and clarifying the core conditions of a goal Current Reality Tree: To outline the cause and effect of the current circumstances Future Reality Tree: Project expected consequences for actions you take Conflict Clouds: Expose assumptions and causes behind seemingly incompatible positions When I have learned how to use the tools, I have found that there is a sort of journey which you can take when exploring an idea or problem.

What are the systems thinking tools?

The systems thinking tools are part of the logical thinking processes which Eli Goldratt brought to the world in a collection of books, primarily in novel form. They fit into his Theory of Constraints , which proposes that there is a key limit on all systems which governs how it will perform (for example speed of a car). Using logical processes you can identify the cause of this limit and address, and achieve a significant increase in performance.