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Monday, January 28, 2008

 

BEYOND THE BUZZWORDS
By Reylito A.H. Elbo
Theory of Constraints:
Defining the real problem

 
OUTSOURCING is one strategic solution to a management problem.  Or is it?  But what if a contractor fails to justify its existence as a decent business partner of major firms?

If you’re part of that “major firms,” would you ignore it while thinking that it’s not your own business that’s directly affected? 

Take another case—last week’s incident in Sampaloc that resulted to an oil tanker explosion that killed at least one person, injured several others, and damaged properties worth millions of pesos. 

Who’s to be blamed here? The contractor who owns the tanker, the driver who was accused of paihi (pilferage), the gas company that outsourced the delivery or the authorities that failed to strictly monitor compliance under established government rules? 

I’ve to emphasize this in the light of one serious threat from somebody who is trying to silence me.  In so many threatening words, he said: “With all the serious problems facing this nation, how come you write negatively about certain business operations using those buzzwords as your refuge?”

To which I answer: “Because no one dares to write about them. Further, this is my own small way of promoting good governance in business. You can call me an idealist if you want, but this is my opinion. Just the same, I can give you a fair shake if you will own up to your responsibility.

“Further, by writing about buzzwords, I believe that I can bring my readers—rich and poor, young and old, paid-hacks or not, greedy or not and the San Mig Light beer drinking managers out there—to a greater awareness of, and appreciation for,—my interpretation of buzzwords as applied to a particular situation.”

That’s how I was reminded of Eliyahu Goldratt’s Theory of Constraints (TOC) as a philosophy that aims to continually achieve more of the goal of a system. If that system is a for-profit business, then the goal is to make more money, both now and in the future.

That’s how business enterprises played with outsourcing in its attempt to earn more profit—by transferring some processes to a contractor that could help reduce costs, except you know that some of them don’t have the respectable means to do it.

This is where TOC should help us—to identify the constraint (problem) and promptly eliminate the same. Unfortunately, some managers don’t see it that way. 

More often than not, managers are prone to wrongly define the problem—like threatening a columnist rather than correcting a defective system or process that is within their control anyway.  They’d rather say: It’s you, not us!

Time and again, my idol—W. Edwards Deming (1900-1993) was proven right when he said: “80 percent of quality problems are caused by Management, and only 20 percent by the Workers.”

To which I must explain with my own buzzword called Elbo­nomics: “There’s nothing more frightening than our own blindness to proximity.”

Of course some of us cannot achieve this level of intelligence overnight. In my case, it took me 26 years (and still counting) doing active management work while dealing with people and their organizations.

Surely, we’ve to take the time to understand buzzwords to realize that this country cannot progress with legal and political nincompoops alone. 

What we need are more scientists, engineers, and technicians who are willing to use hammer, fliers, and saw to build more roads and bridges.  And of course columnists who are willing to stick their neck out in the search for truth, justice, and best management practices.

The question is—should we carry this further?  Without blinking an eyelash, I will say “yes.”

My point is that the buzzword issue involves many complex issues, and we owe it to ourselves, as managers to give them some serious thought.  Now you go first.  Define the real problem at hand.

___

Rey Elbo is a business consultant specializing in human resource and total quality management as a fused specialty. Reader’s feedback may be sent to kairoshq@info.com.ph

  
 

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