Palestra "Atenção gerencial - da gestão de dilemas à excelência de resultados" realizada por Rami Goldratt (CEO do Grupo Goldratt, organização mundial, líder em implementação da Teoria das Restrições -TOC) na ExpoGestão 2013 - Joinville SC Título original em Ingles: Management Attention Achieving results dealing with complexity, uncertainty and conflicts.

1. June 25, 2013 -1- Goldratt Consulting © 2012
Management Attention
Achieving results dealing with
complexity, uncertainty and conflicts.

2. June 25, 2013 -2- Goldratt Consulting © 2012
Management Attention
What to
Change?
What to
Change to?
How to cause
the Change?

3. June 25, 2013 Goldratt Consulting © 2012
Management Attention
Our management attention is constantly being consumed
by challenges across functions, across strategic layers…
Reduce
Price
Protect
margin
Increase
capacity
Reduce
investments

4. June 25, 2013 Goldratt Consulting © 2012
HarmonySuccessful
company
A
 Cut back on cost / investments
 Maximizing efficiency's (get the maximum of current resources)
 Focus on short term profit (cash)
 Make investments
 Allow protective capacity
 Focus on profit
Ensure
smooth current
performance
B
Ensure
long term
prosperity
C
Focus on
current
operations
D
Focus on
long term
health
D’
Oscillations

5. June 25, 2013 Goldratt Consulting © 2012
HarmonyGrowth Stability
One is a condition to the other.
But..
Actions for one are in conflict with actions to the other.
A root conflict…
Management Attention

6. June 25, 2013 Goldratt Consulting © 2012
Successful
company
A
Ensure
smooth current
performance
B
Focus on
current
operations
D
Focus on
long term
health
D’
Ensure
long term
prosperity
C
Harmony GrowthStability
Management Attention

7. June 25, 2013 Goldratt Consulting © 2012
Management Attention
 Dr. Goldratt’s on the Science of
Management

8. June 25, 2013 Goldratt Consulting © 2012
Management Attention
 The real constraint: Management Attention.
 The 3 fundamental mechanisms wasting and
distorting management attention:
 The fear of Complexity -> driving to dissect the system to
sub-systems and bringing damaging local optima.
 The fear of Unknown-> driving to manage by finer and
finer detail resolution, optimizing within the noise.
 The fear of tug of war -> struggling with
unacceptable compromises.

9. June 25, 2013 Goldratt Consulting © 2012
Growth Stability
The common way to
manage conflicts is to
strive for a compromise
between extremes.
The common way to
manage uncertainty is
to rely on detailed
projections.
The common way to manage
complexity is to maximize
performance of sub systems.
Management Attention is wasted and distorted
Conflicts
between sub
sections
Local optima
conflict with
global optimum
Drive local optima
of sub systems
throughout the system
Drive “optimizations”
throughout the
system
Oscillating
between the
conflict sides
Dealing with
symptoms rather
than core conflict
Drive fixed budgets, forecasts,
plans, measures in finer &
finer detail resolutions
Ineffective
reaction to
“noise”
Distorted
actions to meet
commitments
HarmonyIs it always good to maintain
high availability? Introduce
new products? Broaden our
product range? Improve
supply chain efficiency?
“Why don’t you produce
what we can sell?... Why
don’t you sell what we
have produced?...”
Operating to Forecast.
Can we be more
accurate than the
normal variations?
“End of month
syndrome”
“Increase
inventories vs.
reduce
inventories”
Expediting,
outsourcing,
cross shipments…

10. June 25, 2013 -10- Goldratt Consulting © 2012
Management Attention
What to
Change?
What to
Change to?
How to cause
the Change?

11. June 25, 2013 Goldratt Consulting © 2012
Management Attention
Step 1: Identify the system’s constraint(s)
Step 2: Decide how to exploit the system’s constraint(s)
Step 3: Subordinate everything else to the above decision
Step 4: Elevate the system’s constraint(s)
Step 5: If in the previous steps a constraint has been broken,
go back to step 1. Warning: Don’t allow inertia to
cause a system constraint(s)!!!!

12. June 25, 2013 Goldratt Consulting © 2012
Management Attention
Step 1: Identify the system’s constraint(s)
Step 2: Decide how to exploit the system’s constraint(s)
Management Attention
Focus on the core conflict –
bringing ongoing Stability and Growth...
- Build the Competitive edge
- Capitalize on the Competitive edge
- Sustain the Competitive edge
Build
Capitalize
Sustain

13. June 25, 2013 Goldratt Consulting © 2012
Management Attention
 Decisive Competitive Edge:
 The starting point is VALUE! And not a
comparison competitive position.
 Value: diminishing a significant limitation for
the client to an extent no alternative can.
 The cycle of Build -> Capitalize -> Sustain.
Build
Capitalize
Sustain

14. June 25, 2013 Goldratt Consulting © 2012
Management Attention
Step 3: Subordinate everything else to the above decision
Remove the mechanisms blocking management attention
from building, capitalizing and sustaining a competitive edge:
1. Identify the key constraints and protect the flow. Remove
disruptive local optima.
2. Clean the noise caused by over-data and excessive accuracy –
Manage buffers.
3. Don’t optimize on key conflicts – focus attention to challenge
assumptions and find Win-Win solutions.
Imposing harmony
on conflicts
Imposing certainty
on uncertainty
Imposing simplicity
on complexity

15. June 25, 2013 Goldratt Consulting © 2012
Ever Flourishing
What do we need…
 Growth: We need to identify a significant need of the market
that the company can satisfy to an extent no significant
competitor can (= Competitive edge).
 Stability: The same actions that build the competitive edge of
the company should bring fast stability – increase efficiency,
release of cash, controlled investments, freeing up attention.
 Harmony: We need to synchronize the system functions to
work towards the same objective in harmony. We should
ensure any change introduced increases harmony rather
than creats conflicts.