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Theory of Constraints (TOC) – Diagnosing and improving the organizational system
Theory of Constraints (TOC) is, in short, a suite of management concepts developed by Dr. Eliyahu Goldratt in his landmark book “The Goal”. It helps managers and senior leaders to decide:
1. What to change
2. What to change into
3. How to cause and drive the change
Despite its name, the Theory of Constraints is not actualy theoretical, but rather helps in finding practical and effective solutions to complex and real business problems.
The cornerstone of TOC is systematically laser-focusing efforts, resources and attention on the “system constraint”, i.e. the bottleneck that restricts the output of the entire system and, in the same time, represents the most relevant leverage point for improving the system.
1. What to change
2. What to change into
3. How to cause and drive the change
Despite its name, the Theory of Constraints is not actualy theoretical, but rather helps in finding practical and effective solutions to complex and real business problems.
The cornerstone of TOC is systematically laser-focusing efforts, resources and attention on the “system constraint”, i.e. the bottleneck that restricts the output of the entire system and, in the same time, represents the most relevant leverage point for improving the system.
