Hello LO's
I was wondering what people following this thread think about the Eli
Goldratt / "Theory of Constraints" (TOC) approach to this question? My
understanding from reading "The Goal" and "It's Not Luck" - is that the
TOC approach proposes that the goal (in business) is to make money. And
this is done by simultaneously taking actions that maximise throughput to
customers (Sales in effect), whilst keeping inventory (future sales), and
expenses, to a minimum. In this model humans (people) are viewed as an
expense - i.e. an unavoidable, but critical, part of the cost of
converting inventory into throughput.*
Again my understanding is that people are seen as part of the cost of
keeping the system (money machine) running efficiently. If the system
fails then the interests of "all" stakeholders are affected, and it is in
the interests of the system to invest in the people so that the people can
keep the system running.
I imagine that some people will object strongly to being perceived as an
expense, rather than an asset, or a resource, but it doesn't necessarily
follow that people are not highly valued in this model. And in many ways
this is an accurate reflection of the current reality, whether we like it
or not.
*(My apologies to TOC experts (Jonahs) out there, if this is not a precise
definition.)
Peter H. Jones
Peopletronics Limited
PO Box 30 451, Lower Hutt, NZ
Level 4, 22 The Terrace, Wellington, NZ
Tel. 64 4 569 8875. Fax: 64 4 569 8881, http://www.Peopletronics.co.nz
--"Peter H. Jones" <phj@actrix.gen.nz>
Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>