Our brains really struggle to be rational. This is a big problem when it comes to management and making decisions, especially decisions about risk. What can we do about it? Continue reading
Risk and Constraints
Every single process, relationship and communication in our organization, whether we are aware of it or not, is affected by variation. If we ignore variation then we are not managing, and if we are not managing then “risk management”loses its meaning. Continue reading
A Deming-Goldratt Take on Risk Management
If we could predict the outcome of everything we do with mathematical certainty, then our lives would be much simpler. In reality, we exist within a complex web of interdependencies and such certainty is not possible. Hence, we live with uncertainty and its inevitable companion: risk. Continue reading
No one can deny that risk exists. It’s the potential to lose something of value. It would be irresponsible to ignore it. The question becomes, what kind of decisional practice and behaviors are operationally and economically effective when it comes to risk in organizations? Continue reading
Due to the global success of Dr. Goldratt’s first business novel ‘The Goal’ most people mistakenly think of TOC as just a technique for manufacturing. While TOC does produces fast and radical improvements in manufacturing processes, it is in fact a whole system philosophy and method. The thinking that underlies this theory stems from a worldview of unity where all the parts of an organization are connected and it provides solutions for all aspects of management, from the minutiae of day-to-day disagreements right through to entire supply chain management. Continue reading