The Goal Tree Part 2

Review

In my last post I introduced you to a tool referred to as the Goal Tree (a.k.a. The Intermediate Objectives Map).  I also explained that many people who have gone through a workshop/training exercise on TOC’s Thinking Processes (TPs), have come away feeling inadequate or ill-prepared to apply what they had supposedly just learned.  The good news is, exposure to the Goal Tree, for many people, has restored their confidence and given them a renewed sense of confidence.  In this posting we will lay out the foundation for this brilliant tool.

The Goal Tree Basics

In past posts I have explained that when using any of TOC’s TP’s, there are two distinctly different types of logic at play, sufficiency and necessity.  Sufficiency logic tools use a series of if-then statements that connect cause and effect relationships between undesirable effects.  Necessity logic uses the syntax, in order to have x, I must have y or multiple y’s.  The Goal Tree falls into the category of necessity based logic and is used to lay out strategies for successful improvement.

Bill Dettmer [1] explained in a white paper he wrote that, “The Intermediate Objective (IO) Map dates back to at least 1995 when it was casually mentioned during a Management Skills Workshop conducted by Oded Cohen at the A.Y. Goldratt Institute, but it was not part of that workshop, nor did it ever find its way into common usage as part of the Logical Thinking Process (LTP).   It was described as a kind of Prerequisite Tree without any obstacles.” 

Dettmer continued, “I never thought much about it for the next seven years, until in late 2002, when I began grappling with the use of the Logical Thinking Processes (LTP) for developing and deploying strategy.”  At that time, Dettmer had been teaching the LTP to a wide variety of clients for more than six years, and had been dismayed by the number of students who had substantial difficulty constructing Current Reality Trees and Conflict Resolution Diagrams (CRD) of sufficient quality. According to Dettmer, they always seemed to take a very long time to build a CRT, and their CRD’s were not always what he would characterize as “robust.”  He claimed they lacked reference to a “should-be” view of the system—what ought to be happening.  It occurred to Dettmer that the IO Map he’d seen in 1995 could be modified and applied to improve the initial quality of CRTs. As time went on, Dettmer began to realize that the IO Map could serve a similar purpose with CRD’s.  In 2007 Dettmer published a book, The Logical Thinking Process: A Systems Approach to Complex Problem Solving that introduced the world to this wonderful tool.

Dettmer tells us that one of the first things we need to do is determine the system boundaries that we are trying to improve as well as our span of control and sphere of influence.  Our span of control means that we have unilateral change authority while our sphere of influence means that at best, we can only influence change decisions.  Dettmer explains that if we don’t define our boundaries of the system, we risk “wandering in the wilderness for forty years.”

The Goal Tree Structure

The hierarchical structure of the IO Map/Goal Tree consists of a single Goal and several entities referred to as Critical Success Factors (CSFs).  CSF’s must be in place and functioning if we are to achieve our stated goal.  The final piece of the Goal Tree are entities referred to as Necessary Conditions (NCs) which must be completed to realize each of the CSF’s.  The Goal and CSF’s are worded as though they were already in place while the NC’s are stated more as activities that must be completed.

The figure below is a graphic representation of a Goal Tree with each structural level identified.  The Goal sits at the top with three to five Critical Success Factors directly beneath it.  The CSF’s are those factors which must be in place if the Goal is to be realized.  For example, if your Goal was to create a fire, then the three CSF’s which must be in place are (1) a combustible fuel source, (2) a spark to ignite the combustible fuel source and (3) air with a sufficient level of oxygen.  If you were to remove any of these CSF’s, there would not be a fire.

The Goal

Steven Covey [3] suggests that we should, “Begin with the end in mind,” or where we want to be when we’ve completed our improvement efforts which is the purpose of the Goal.  A Goal is an end to which a system’s collective efforts are directed.  It’s actually a sort of destination which implies a journey from where we are to where we want to be.  Dettmer also makes it very clear that the system’s owner is who determines what the goal of the system should be.  If your company is privately owned, maybe the owner is a single individual.  If there’s a board of directors, they have a chairman of the board who is ultimately responsible for establishing the goal.  Regardless of whether the owner is a single person or a collective group, the system's owner(s) ultimately establishes the goal of the system.

Critical Success Factors and Necessary Conditions

There are certain high-level requirements which must be solidly in place and if these requirements aren’t achieved, then we simply will never realize our goal.  These requirements are referred to as Critical Success Factors (CSFs).  Dettmer recommends no more than three to five CSF’s.  Each of the CSF’s have some number of Necessary Conditions (NCs) that are considered prerequisites to each of the CSF’s being achieved.  Dettmer recommends no more than two to three levels of NC’s, but in my experience, I have seen as many as five levels working well.  While to Goal and the CSF’s are written as terminal outcomes that are already in place, the NC’s are worded more as detailed actions that must be completed to accomplish each of the CSF’s.

The relationship among the Goal, CSF’s and the supporting NC’s in this cascading structure of requirements represents what must be happening if we are to reach our ultimate destination.  For ease of understanding, when I am in the process of constructing my Goal Trees, the connecting arrows are facing downward to demonstrate the natural flow of ideas.  But when my structure is completed, I reverse the direction of the arrows to reveal the flow of results. In keeping with the thought of learning a tool and making it my own, I have found this works well, even though this is completely opposite of Dettmer’s recommendations for construction of a Goal Tree.

Next time

In my next posting we will begin construction of a Goal Tree and begin to demonstrate why it is perhaps one of the best tools ever developed for achieving excellence in your company. As always, if you have any questions or comments about any of my posts, leave me a message and I will respond. 

Until next time.

Bob Sproull

References:

[1] Dettmer, H. William. The Intermediate Objectives Map – White Paper, Goal Systems International, 2007

[2] Dettmer, H. William. The Logical Thinking Process: A Systems Approach to Complex Problem Solving. Milwaukee, WI: ASQ Quality Press, 2007

[3] Covey, Stephen R. The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change. NY: Simon and Schuster

The Goal Tree Part 1

Some Facts and History

Many people who have gone through training on the Theory of Constraint’s Thinking Process (TP) tools have come away from the training somewhat overwhelmed.  Let’s face it, the TP tools are pretty intimidating and after receiving the training, I have seen so many people walking away from the training feeling like they were ill-prepared to apply what they had supposedly just learned.  Even for myself, I had this feeling and talking with others, there was a general confusion about how to get started.  For the average person, the TP tools are just not easy to grasp, so they end up kind of putting them on the back burner rather than taking a chance on making a mistake using them. 

The other complaint I have heard many times is that a full TP analysis typically takes several days to complete and let’s face it, a regular executive team simply doesn’t have that kind of time to spend on this. Well for everyone who feels the same, or maybe having gone through the same Jonah training as I did or a full analysis, I have hope for you.  That hope for you is another logic diagram currently known as the Goal Tree.  I say currently, because the man responsible for creating the Goal Tree, Bill Dettmer [1], originally referred to this tool as an Intermediate Objectives Map (IO Map), but has elected to change its name to Goal Tree.

Bill Dettmer tells us of his first exposure to IO Maps (Goal Trees) back in 1995 during a management skills workshop conducted by another TOC guru named Oded Cohen at the Goldratt Institute.  In recent years, Dettmer has written much about the IO Map/Goal Tree and now uses it as the first step in a full Thinking Process analysis.  Bill is passionate about this tool and believes that it defines the standard for goal attainment and its prerequisites in a much more simple and efficient way.  I happen to agree with Bill and believe that the IO Map/Goal Tree is a great focusing tool to better demonstrate why an organization is not meeting its goal.  And because of its simplicity, it is easy not only to learn, but also how to teach others in your organization how to use it.

There are other advantages of learning and using the IO Map/Goal Tree including a better integration of the rest of the TP tools that will accelerate the completion of Current Reality Trees, Conflict Resolution Diagrams and Future Reality Trees if you choose to use them.  But what I really like about the IO Map/Goal Tree is that it can be used as a stand-alone tool resulting in a much faster analysis of the organization’s weak points and a rapid development of an improvement plan for your organization.  I have been teaching the IO Map/Goal Tree for quite a few years, and I state unequivocally that the IO Map/Goal Tree has been the favorite of most of my classes and workshops.

One of the lessons I always tell my students and workshops is that they should always learn a new tool and then make it their own.  That message simply means that even though the “inventor” of a tool typically has a specific use in mind, tools should be continually evolving and such was case for me with the Goal Tree.  I have transformed this tool into one that most people grasp and understand almost immediately and see its usefulness in a matter of minutes.

In my next posting I will introduce you to the construction of the Goal Tree and begin to demonstrate why it is perhaps one of the best tools ever developed for achieving excellence in your company. As always, if you have any questions or comments about any of my posts, leave me a message and I will respond. In previous posts I have written about the Goal Tree, but recently I have been asked to write more posts on this tool.

Until next time.

Bob Sproull

References:

[1] The Logical Thinking Process – H. William Dettmer, Quality Press, 2007

 

 

The New Beginning Part 7

 Part 7 is my final post of my blog series on Matt Hutcheson and my new book, The New Beginning. This book is written as a business novel and is a sequel to my last book, The Secret to Maximizing Profitability.

In Chapter 21, entitled The End of the New Beginning, as Tom was driving home from Detroit, he began thinking about the offer the Chairman of the Board, Jonathan Briggs, had made to him about a new consulting agreement based upon helping them select future companies to purchase.  Since Tom was a huge fan of the TV show, Shark Tank, you can only imagine what he would offer the Board as his payment structure.  Prior to his trip to Chicago to present the latest performance metrics, Tom had an on-line meeting with each of the four portfolio companies to get an update on what they had implemented, and the results achieved.  In this chapter Tom also requests and receives updates from all six hospital leaders and has a meeting to hear about them.  The results presented were very good.  He then flies to Chicago to meet with the Board of Directors and present the latest metrics.  The results were astounding to the Board and needless to say, they were very happy.  They were so happy, that they offered to meet Tom’s proposed payment structure for assisting the Board on new purchases, which surprised Tom.  But what surprised Tom even more, was an announcement his wife made to him on the phone.

In Chapter 22, entitled The Virus, as Tom is excited about all of the great things happening around him, he learns about a new virus called the Corona Virus, or COVID-19, which is spreading rapidly across the globe. Tom researches the virus to find testing is a major issue in helping with the slow of the spread. His wife Beverly is also not feeling well and decides to see a doctor, since she is experiencing symptoms of this new virus. Tom decides to contact Chairman of the Board, Jonathan Briggs to see if he had any contacts out in the field where the virus was starting to spread. Jonathan provides contact information for two doctors who are directly in the hot spots. Tom learns that along with testing for the virus, the shortages on ventilators to treat patients and masks to help protect against the spread had major issues with availability. He reaches out to two suppliers of these very important items to offer his free consulting services.  

Chapter 23, entitled The Webinar, begins with Tom presenting a webinar on the Theory of Constraints to Jefferson Ventilators and The Mask Makers. After presenting and implementing, both companies see an immediate increase (triple the rate) in production to the point of parts shortages effecting availability. Tom then presents how the TOC’s Parts Replenishment Solution can help resolve this issue.

I hope you have enjoyed reading this blog post series and we both hope you enjoy reading our new book when it's released on March 5th.  My next post will be on a completely new subject.

Bob Sproull

The New Beginning Part 6

 Part 6 is a continuation of my blog series on Matt Hutcheson and my new book, The New Beginning. This book is written as a business novel and is a sequel to my last book, The Secret to Maximizing Profitability.

In Chapter 17, entitled The Board Meeting, Tom attends a meeting with the Board of Directors with his intention to provide an update on the four company’s performance metrics.  He presents the update and clearly there has been improvements to all of them.  He then presents Simpson’s Goal Tree, their assessment, future improvement efforts and then a future assessment.  The four improvement efforts included implementation of Drum Buffer Rope, TOC’s Replenishment Solution, Throughput Accounting and his very own, Ultimate Improvement Cycle methodology.  The Board then surprises Tom by offering him a new consulting agreement whereby he would assist the Board on whether or not they should purchase new companies.

 In Chapter 18, entitled Maximo’s Improvement Effort, Tom intends to follow-up on two presentations he has already made, namely Drum Buffer Rope and possibly TOC’s Replenishment Solution.  Although he had already presented both of these improvement initiatives, he wanted to do a follow-up session, especially on Drum Buffer Rope, just to make sure the teams understood everything necessary to do, in order to successfully implement both parts.  In this session, Tom presented new details of Drum Buffer Rope and sent the team on a fact-finding mission to answer some unresolved questions.

In Chapter 19, entitled Drum Buffer Rope at Maximo, Tom had scheduled another follow-up meeting to discuss more on Drum Buffer Rope.  As he was ready to begin, Dr. Samuels entered the room and asked for permission to say a few words.  To everyone’s surprise, Dr. Samuels let everyone know that the hospital board had decided to implement the team’s recommendations on discharge policy changes and their housekeeping efforts, which pleased everyone.  The team then presented three more recommendations on how to reduce hospital wait times.  Tom finished the day with a new idea on Multiple Drum Buffer Rope for a hospital’s Emergency Department and presented a drawing of his idea.

In Chapter 20, entitled Simpson Water Heater’s New Initiative, Tom flies into Detroit to present the Theory of Constraints Replenishment Solution.  Even though he had touched on this solution in another visit, in this trip he would present the details of how it works.  He explains the pitfalls of using the Min/Max system which Simpson currently uses, with these pitfalls being excessive amounts of inventory while seeing regular examples of part’s stock-outs.  He then delivers the key messages associated with TOC’s Replenishment Solution with results being fifty plus percent reduction in inventory volume while stock-outs fall to nearly zero.

My next post will be the final post of my blog series on Matt Hutcheson and my new book, The New Beginning. This book is written as a business novel and is a sequel to my last book, The Secret to Maximizing Profitability.

Bob Sproull