A Critical Review of the Book It's Not Luck by Em Goldratt
An extensive use of Goldratt's thinking process is applied in the various businesses as part of the problem solving. "It's not luck" emphasizes the importance of using the thinking processes in business and in your personal life. The thinking processes refer to a logical, graphical, general and practical method of problem solving methodology and basically comprised of 3 steps. These steps as described by Goldratt are:
1. What to change?
2. To what to change?
3. How to cause the change?
It is very clear that the problems experienced in the companies are not lone standing but in most of the cases they are dependent on each other and there are strong bonds or relationships with regards to the cause and effects between them. It is therefore important to form or establish a strong cause and affect between them.
It is important to identify the unresolved conflict that exists. The process can be illustrated through a conflict resolution diagram or evaporating cloud, Goldratt (1994). As a first step a "current reality tree" is used extensively to portray and depict the cause and effect that join all the problems proceeding in a specific situation. After this, one will realize that you don't have to deal with multiple problems because normally there are only one or two reasons or causes. The thinking processes give you a step by step procedure how to do this. This is where the undesirable effects (UDE's) come in.
This brings us to what to change. If the undesirable effects lead to the root cause, then the root cause must lead to the undesirable effects, therefore "brought on by the root cause itself", Taylor (2003). The resultant current reality tree brings us to the process of determining what to change. Through this method of analysis a tool is established to understand the current state of the cause.
According to Goldratt the process starts by listing all the current undesirable effects that exists. Taylor (2003) states that the current reality tree "does not focus on the severity or the ranking but on the effect-cause-effect relationships of the list of UDE's". The next step is to find a cause and affect relationship between at least 2 of the undesirable effects that form part of the list. When the relationships are completely mapped, it is possible to identify the one core reason or problem that was under control of the facility.
It is clear from the current reality tree that the core problem reflected "managers are using local optima" Goldratt, (p.158). It is evident that managers are in a conflicting position that is preventing them from doing the things that is right for the business. In order to correct this, it is imperative to clarify what the right thing to do is and what prevent them to do the right thing. The answer to the breakthrough solution" must be strived for. One of the conflicts that stood out in the examples was "consider the clients' perception of value" versus...