www.tocpractice.

com

42 TOCPA International Conference

13-16 May 2019, Johannesburg, South Africa

Thoughts about the

Ever Improve assumption
for management

Oded Cohen - Israel, Estonia

TOCPA - tocExpert

Johannesburg, 16 May, 2019

 Oded Cohen
Oded has over 40 years of experience in developing, teaching
and implementing TOC methodology, solutions and
implementation processes working directly with Dr. Goldratt
all over the world. Among the countries to which Oded brings
his expertise are the USA, Canada, Japan, India, China, the
UK, Poland, Russia, Ukraine, Colombia, Chile, Peru, Turkey
and many others.
Oded has authored multiple TOC articles and contributed to
numerous TOC books.
Oded in the is the author of Ever Improve – A Guide to
Managing Production the TOC Way, published in June 2010,
translated to Chinese in 2015. Oded co-authored the book
Deming & Goldratt: The Theory of Constraints and the
System of Profound Knowledge – The Decalogue.
Together with Jelena Fedurko Oded has co-authored the
book Theory of Constraints Fundamentals. oded.cohen.gs@gmail.com
www.tocexpert.com
Oded is International Director of tocExpert Ltd, and Founder www.tocpractice.com
and Co-President of TOCPA.
 Ever Improve

For over 40 years TOC has been using the working

assumption regarding the major drive of
management:
The role of a manger is to ever improve the
performance of the system under their
responsibility
This assumption has provided the TOC practitioners
(internal and external consultants) with enough
opportunities for implementing TOC in organization.
However, it feels now as if this assumption is less shared
by the new generations, especially the “Y” and the “Z”..
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 The major generations
of the Western world

Years of Birth Name Age Today

1900 – mid 1920 The Greatest

Mid 1920 – mid 1940 The Silent 75+
Mid 1940 – 1960 The Baby Boom 60 - 75
1960 – 1980 “X” 40 - 60
1980 – mid 1990 “Y” Millennials 25 - 40
Mid 1990 – mid 2000 “Z” 15 - 25

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 TOC in over 40 years

Over the years TOC itself has gone through the Ever
Improve – the continuous POOGI
Improved performance of
systems and companies

US Manager(s)
With TOC
Situation With authority,
desire and drive
knowledge, System’s current
to improve
experience and reality
And could see the
tools
opportunity

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 TOC and Management

Our experience with successful TOC

implementations show the powerful collaboration
between a “C” level leader and a middle level
manager.
The leader usually has provided the vision, the
conviction in the direction chosen [Layers 1-2-3] and
the support in dealing with other parts of the
organization.
The middle level manager has provided the technical
support as well as becoming the custodian of the
TOC knowledge and know-how
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 TOC and Management
Recent Observations
Generally, there are many “C” level officers that
subscribe to the Ever Improve approach, but having
the middle managers on Ever Improve is not always as
easy as it used to be.
There are countries and organizations that have
capable managers that are willingly subordinate to the
direction set by their superiors.
However, in many other countries we have
experienced cases in which middle management have
not been subordinating to the leader when it comes to
change. Usually, manifested in silence through the first
5 layers.
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 TOC and the New
Generations
The managers we work with:
AGE Generation

“C” Level
35-60 “X” and old “Y”

Middle Level 30-45 Mostly “Y”

Line management 25-40 Mostly “Y” and few “Z”

The challenge in some

implementations:
There is a lack of middle
managers who are on the Ever
Improve drive
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 Why Middle
Management?
“C” level officers had arrived to their position mostly
due to their past performance. The company expect them
to keep on delivering results.
When they experience difficulties in delivering the
expected results they turn to their subordinates for ideas
and actions.
If results are still not achieved the “C” level may put
more pressure and/or look for external help. In either
case the relationships between them and their
subordinates deteriorate.
The reality is that in many companies middle managers
are not prepared for the challenges of their jobs.
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 Why Middle Management?
General Observations:

Given the age group of middle managers many may not

have the natural desire for building and improving.
Many companies do not see management as a profession.
The regular promotion in companies is based on
achievements. Expecting the managers to excel in their
new jobs.
Companies do not encourage young managers to learn
and upgrade their managerial skills.
So, managers believe that once they have been nominated
into a new managerial position – they have all the answers
to all the problems!

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 The reality is different

50 years ago - in 1969, Peter and Hull

published a book called: The Peter Principle
Observation that in an hierarchy people
tend to rise to "their level of incompetence."
Thus, as people are promoted, they become
progressively less-effective because good
performance in one job does not guarantee
similar performance in another.
http://www.businessdictionary.com/definition/Peter-
principle.html

Recent studies confirm that Peter Principle is still

live and kicking in organizations
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 Peter Principle and
The Green curve
Peter Principle is similar to the TOC Green/Red
TARGET
Curve of TOC of the system performance
LEVEL

Managers are There is a strong

sults
expected to identify d Re pressure to
the problems and find ecte
Exp achieve higher
solutions
PERFORMANCE

results of the
And then to system
CURRENT
LEVEL implement them
The Managerial Challenge
Deliver the expected results of the
system

TIME
THE PAST TODAY THE FUTURE
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 The Managerial
Challenges are general

Peter Principle become reality when a manager is

unable to deliver the expected results.
This means that GAPS in performance immerge
To prevent such situations the manager it is possible
be equipped with abilities and capabilities to:
• recognize the gaps
• understand the real reasons for their existence
and why it seems impossible to remove them
• Find ways how to close the gaps
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 The Managerial
Challenges

Managers are phasing two types of challenges:

1. Repeating problems that prevent them from
performing their jobs ensuring the smooth running
of the area under their responsibility.
2. Challenges that are associated with leading a
change in the system (under their authority or within
a company assignment). Including:
• Dealing with obstacles and lack of buy-in
• Handling conflicts of views
• Dealing with risks (personal fears and others)
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 The Direction of the
Solution
TOC has a lot to offer managers to ENHANCE their
abilities to identify and close the GAPS between the
expectations and the actual delivered results of the
areas under their responsibilities. TOC has:
• Core managerial skills and tools
• Flow solutions – planning, execution and POOGI –
totaling 38 Injections, stable and complete
• Thinking Processes

The Direction: Give the next generation the tools

and knowledge to handle the managerial challenges of
the future. [why next?]
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 The Suggested
Solution

Strategy: Companies – Especially those with

TOC experience, have a cadre of next
generation manager ready for the future
managerial challenges

Tactic: A selected group of first line and

middle level managers go through a special
TOC continuous program [TOC School] that
provides them with knowledge, tools and
practical know-how relevant for their future
managerial roles
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 The TOC School for the next
generation of management

Strategy: Companies have a cadre of managers ready for

the future managerial challenges

Tactic: A selected group of first line and middle level

managers go through a special TOC continuous program
[TOC School]

Mindset and basic Flow Management – Continuous growth

TOC managerial Planning and – system and
tools Execution Control personal POOGI

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 The TOC School for the next
generation of management
Strategy: Companies have a cadre of managers ready for the future
managerial challenges

Tactic: A selected group of first line and middle level managers go through a
special TOC continuous program [TOC School]

Mindset and basic Flow Management – Continuous growth –

TOC managerial tools Planning and Execution system and personal
Control POOGI

Managing Through Basics of TOC Buffer Analysis

Constraint logistical Solutions: Gap Review and Audit
• 5 Steps • MTO/MTA/MTIA • Basic TP
• T-I-OE • DTA • Expert Cycles
• Cause & Effect • CCPM
• Justifying Decisions Buffers and their roles
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 The Current Difficulty with
Adopting TOC
When the GAPS are recognized – it is already
TARGET
too late for learning or for changing the
LEVEL
mindset
sults
Managers are pushed to d Re The pressure to
ecte
find quick solutions! Exp close the GAP
increases!
PERFORMANCE

TOC is perceived to be
CURRENT too difficult!
LEVEL

?
The Managerial Challenge
Deliver the expected results of the
system

TIME
THE PAST TODAY THE FUTURE
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 Conclusion
Look Ahead!
The next generation of management is
TARGET
prepared for engagement when the gaps start
LEVEL
to appear
sults
Managers know that Re
d The pressure to
reinforcement is on the ecte
Exp close the GAP
way as per their
will always be
PERFORMANCE

preparation for future

there!
CURRENT
LEVEL challenges.
The next generation has the time
and less panic pressure to sort out
immediate crisis – and hence can
devote time and attention for
learning and preparing
TIME
THE PAST TODAY THE FUTURE
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