7 keys to The Goal by Eliyahu Goldratt
Posted: Sat Jan 25, 2025 10:03 am
Listed below are some of the key learnings from The Goal:
1. Productivity vs. busy work
Don't confuse busyness with productivity. You're not productive if your tasks don't bring you closer to your goal or make you money.
2. Weak links matter
The strength of your processes is not defined by their strongest or best link, but by their weakest. Identify and improve that weakest link to improve overall effectiveness.
3. Improve the weakest link
Focus on improving the efficiency of your weakest link or constraint. The slowest part sets the maximum production speed and, consequently, the throughput rate.
4. Cost performance
To achieve your goals, prioritize increasing performance over reducing costs. This is the key to owner/ partner/ shareholder email list driving your company's growth.
5. Continuous improvement
Business is a continuous process of improvement. When new bottlenecks arise, they must be addressed head-on to achieve sustained improvement.
6. Focus on generating profits
The goal is to make profits by increasing throughput while reducing inventory and operating expenses.
7. Align flow with demand
Instead of matching capacity with demand, product flow must be aligned with market demand.
1. Productivity vs. busy work
Don't confuse busyness with productivity. You're not productive if your tasks don't bring you closer to your goal or make you money.
2. Weak links matter
The strength of your processes is not defined by their strongest or best link, but by their weakest. Identify and improve that weakest link to improve overall effectiveness.
3. Improve the weakest link
Focus on improving the efficiency of your weakest link or constraint. The slowest part sets the maximum production speed and, consequently, the throughput rate.
4. Cost performance
To achieve your goals, prioritize increasing performance over reducing costs. This is the key to owner/ partner/ shareholder email list driving your company's growth.
5. Continuous improvement
Business is a continuous process of improvement. When new bottlenecks arise, they must be addressed head-on to achieve sustained improvement.
6. Focus on generating profits
The goal is to make profits by increasing throughput while reducing inventory and operating expenses.
7. Align flow with demand
Instead of matching capacity with demand, product flow must be aligned with market demand.