The TBLS business strategy implementation consists of 18 phases, 13 of which occur during the strategic workshop. The remaining 5 happens at the tactic workshop. This paper shows «the how» of the strategic workshop and establishes some links with the author’s previous papers that explore certain phases of the strategy which are only mentioned here.
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How to implement the TBLS Strategy - the strategic workshop
1. How to implement the TBLS strategy –
the strategic workshop.
Ricardo Anselmo de Castro
ricardo.anselmo.castro@tecnico.ulisboa.pt
Abstract
The TBLS business strategy implementation
consists of 18 phases, 13 of which occur during the
strategic workshop. The remaining 5 happens in the
tactic workshop. This paper shows «the how» of the
strategic workshop and establishes some links with
the author’s previous papers that explore certain
phases of the strategy which are only mentioned
here.
Key-words: TBLS
To take the best
advantage of TBLS it is
necessary to develop a
strategic workshop. Up
to three days, the goal is
to provide high level
training in TOC, BOS,
Lean and Six Sigma
while, simultaneously,
to run the first 13 phases
of the implementation
itself. The entities that
should attend to this
event are: the system
owner, the executive
committee and the first
line of directors. It is
assumed that prior to
this event there was a
meeting with the system
owner to sort out some
goals and expectations.
The opening of the
event must be done by
the owner so that
everybody understands
that this initiative will
have top sponsorship.
After this intro the first
thing to be done is:
1. Identify the System and its Goal.
This point was already elaborated in the paper “The
system, the goal, the goal tree and validating the
measuring system in the TBLS strategy”. In a
nutshell, one can only improve something when the
scope for improvement is known as well as its goal.
2. Executives biannual questionnaire – modus
operandi baseline.
In 9 different areas management scores company’s
performance from 1 to 7. It’s assumed that these
areas are relevant and reflect company’s
performance. This assessment allows us to
objectively recognize the state of the art, but also to
create a sense of urgency for improvement. The
results are given during the workshop. The
assessment areas are: 1) Management system, 2)
Products and processes development, 3) Supply
chain management, 4) Operations management, 5)
Customer relationship management, 6) Marketing
and sales management, 7) Process decision making,
8) Process of identifying and problems resolution
and 9) Process of recruitment and talent
management. For example, the standard for point 1)
is: The most important metrics are known by all and
everybody understands how the company is
measured and assessed. No contradictions among
metrics (e.g.: improving one metric will no
deteriorate any other metric). Scoring a 7 means
“totally agree” and scoring a 1 means “totally
disagree”.
3. Champion deployment and a supporting team
nomination.
The paper “Organizational dynamics in the TBLS
strategy” addresses this point. During the workshop
a rule of thumb may be: 1) Show the organizational
chart to the audience (previously worked with the
system owner), 2) Print each job identified in the
chart (job description filled in already) and give out
to everyone, 3) Identify parts of jobs description
that people may disagree, 4) Work to solve those
conflicts and proceed with the needed changes and
5) Verify if something needs to be added to each
job description.
4. Building the goal tree.
The paper “The system, the goal, the goal tree and
validating the measuring system in the TBLS
strategy” addresses this point already. The goal tree
turns the goal, its critical success factors and
necessary conditions visible to everyone.
5. Identify and scrutinize the measuring system
(MS) in respect to the goal and the CSFs.
The paper “The system, the goal, the goal tree and
validating the measuring system in the TBLS
strategy” addresses this point already. The idea is to
better understand the relationship between each
CSF and the goal, but also to guarantee no
contradictions among metrics, something that
would lead to serious conflicts in the system.
Identify and
scrutinize the
measuring system
(MS) in respect to
the goal and the CSF.
Identify the System
and its Goal.
START
Champion
Deployment and a
supporting team
nomination.
Building
the goal tree.
Executives biannual
questionnaire –
modus operandi
baseline.
2. 6. Follow the flowchart
in order to find the
area’s constraint.
The paper “How to
identify the area that
holds the constraint“
answers precisely what
to do in this phase.
7. By direct
observation or
predicted effect
confirm that the area
contains the constraint.
This point is well
explained in the paper
mentioned. It is assumed
that there’s only one
constraint in the system
and it’s observable. At
this stage we intend to
focus our efforts in what
will bring highest return,
goal units and also good
stakeholders support. The area that holds the
constraint should coincide with the lowest score
area, assessed in point number 2.
8. Revise the goal tree and identify the
corresponded necessary condition.
The objective is to link the area that holds the
constraint to the corresponded necessary condition
written in the goal tree. It is assumed that this link
is a triviality or at least it’s possible to add a new
NC to find that link, if necessary. This is a good
opportunity to scrutinize the tree. The team will
make sure that a particular NC isn’t missing and the
scope for future improvements is well defined. For
instance, imagine that the team came to the
conclusion that the area that is holding the
constraint is at the supplier. The NC described in
the goal tree most likely nearer that area could be:
“raw materials short lead times, from order upon
delivery”. That is, by the end of several
improvement projects one is expecting to reduce
aggressively the raw materials lead time, because
this is the area that is stopping the company to
achieve more of the goal.
9. If the NC is not a triviality identify what is
value to the customer.
Following the previous example, not always people
agree on what “short lead times” is. When certain
terms are poorly defined communication becomes
faulty and the act of managing suffers. In order to
minimize subjectivity it is important to confirm or
discover what means value to the customer. Not
only customer satisfaction is a necessary condition
to a viable business but also it would be unthinkable
to work on something that the customer doesn’t
care. As a consequence, by the end of this phase we
have to make sure that customer’s needs and
requirements are well understood. This corresponds
to the minimum knowledge a company must
possess in order to thrive.
10. Identify the NC metrics, their actual and
future state.
Now that is clear what that NC means we turn our
attention to measuring its current performance as
well as defining a target. It is assumed that the NC
is performing poorly, though is controllable and
easily measured. The target is set in a way that, if
achieved, the constraint will shift to some other NC.
Imagine that in the previous example the NC
metrics, their baseline and goals are:
11. Confirm that these metrics will put the
system closer to its goal, and there is no conflict
among them or with the Measuring System.
At this stage we want to make sure that people
agree with the problem. Otherwise, stakeholders
that may be penalized with the NC improvements
may show some active or passive resistance. For
this matter it’s important to: 1) reduce resistance to
improvement, 2) accept the scope of future projects
and 3) change, if necessary local metrics. This
exercise is similar to the fifth phase because we are
also looking for causalities between this NC and
others NCs and CSFs.
12. Nominate a horizontal process owner with
influence over that NC.
In this phase we want to give a title (action) to the
horizontal process that is nearer the selected NC
which, in turn, is holding the constraint. This will
enable in the future (meaning tactic workshop) to
map the value stream and hence to shift from
systemic thinking to process thinking. Moreover we
want to elect a process owner. The owner should be
someone with autonomy to make changes, someone
who is penalized or is benefited with the process
performance and also highly respected. Following
the previous example: Horizontal Process –
Receiving order, transforming raw material “A” to
finished goods and delivery; Process Owner –
Company logistics’ director.
If the NC is not a
triviality identify
what is value to the
customer.
Revise the goal
tree and identify
the corresponded
NC.
Follow the
flowchart in order
to find the area’s
constraint.
By direct
observation or
predicted effect
confirm that the
area contains the
constraint.
80%
16 days
Baseline
99%
7 days
Objective
19%Due date performance
9 daysLead time
GapMetric (Raw Material A)
80%
16 days
Baseline
99%
7 days
Objective
19%Due date performance
9 daysLead time
GapMetric (Raw Material A)
3. 13. Developping
organizational
dynamics.
The paper
“Organizational
dynamics in the TBLS
strategy” addresses these
points. In the workshop,
time may be short to
close this item, but some
course of action has to be
taken. If necessary
“homework” is sent to
who is accountable for
the following:
• training in TBLS
• monitoring and
reporting
• recognition
• TBLS assessment
• communication
CONCLUSION
The strategic workshop is a fundamental tool to
start the TBLS initiative with the right foot. This
event should take place every three or four months
so that any of the 13 phases may be revised and
updated. The main deliverables of the workshop
are:
System and system’s goal identified
Company’s performance self assessment
New organizational chart developed
Goal tree developed
Measuring system validated
Area that holds the constraint identified
Most affected necessary condition
identified
Horizontal process and process owner
identified
Organizational dynamics developed (or
ongoing)
The inputs used for the tactic workshop will be:
Necessary condition metrics and goals
defined
Horizontal process to be improved defined
Horizontal process owner identified
References
[1] Castro, Ricardo A. (2014) O Proveito da
Dúvida – troque o peixe pela cana de pesca.
Leanpub.
Nominate a
horizontal process
owner with
influence over that
NC.
Developping
organizational
dynamics.
Confirm that these
metrics will put the
system closer to its
goal, and there is
no conflict among
them or with the
MS.
Identify the NC
metrics, their
actual and future
state.