How to implement the TBLS strategy –

the strategic workshop. Ricardo Anselmo de Castro

ricardo.anselmo.castro@tecnico.ulisboa.pt

Abstract

The TBLS business strategy implementation

consists of 18 phases, 13 of which occur during the

strategic workshop. The remaining 5 happens in the

tactic workshop. This paper shows «the how» of the

strategic workshop and establishes some links with

the author’s previous papers that explore certain phases of the strategy which are only mentioned

here.

Key-words: TBLS

To take the best

advantage of TBLS it is

necessary to develop a

strategic workshop. Up

to three days, the goal is

to provide high level

training in TOC, BOS,

Lean and Six Sigma

while, simultaneously,

to run the first 13 phases

of the implementation

itself. The entities that

should attend to this

event are: the system

owner, the executive

committee and the first

line of directors. It is

assumed that prior to

this event there was a

meeting with the system

owner to sort out some

goals and expectations.

The opening of the

event must be done by

the owner so that

everybody understands

that this initiative will

have top sponsorship.

After this intro the first

thing to be done is:

1. Identify the System and its Goal.

This point was already elaborated in the paper “The

system, the goal, the goal tree and validating the

measuring system in the TBLS strategy”. In a

nutshell, one can only improve something when the

scope for improvement is known as well as its goal.

2. Executives biannual questionnaire – modus

operandi baseline.

In 9 different areas management scores company’s

performance from 1 to 7. It’s assumed that these areas are relevant and reflect company’s performance. This assessment allows us to

objectively recognize the state of the art, but also to

create a sense of urgency for improvement. The

results are given during the workshop. The

assessment areas are: 1) Management system, 2)

Products and processes development, 3) Supply

chain management, 4) Operations management, 5)

Customer relationship management, 6) Marketing

and sales management, 7) Process decision making,

8) Process of identifying and problems resolution

and 9) Process of recruitment and talent

management. For example, the standard for point 1)

is: The most important metrics are known by all and

everybody understands how the company is

measured and assessed. No contradictions among

metrics (e.g.: improving one metric will no

deteriorate any other metric). Scoring a 7 means

“totally agree” and scoring a 1 means “totally disagree”.

3. Champion deployment and a supporting team

nomination.

The paper “Organizational dynamics in the TBLS strategy” addresses this point. During the workshop

a rule of thumb may be: 1) Show the organizational

chart to the audience (previously worked with the

system owner), 2) Print each job identified in the

chart (job description filled in already) and give out

to everyone, 3) Identify parts of jobs description

that people may disagree, 4) Work to solve those

conflicts and proceed with the needed changes and

5) Verify if something needs to be added to each

job description.

4. Building the goal tree. The paper “The system, the goal, the goal tree and validating the measuring system in the TBLS

strategy” addresses this point already. The goal tree

turns the goal, its critical success factors and

necessary conditions visible to everyone.

5. Identify and scrutinize the measuring system

(MS) in respect to the goal and the CSFs. The paper “The system, the goal, the goal tree and validating the measuring system in the TBLS

strategy” addresses this point already. The idea is to

better understand the relationship between each

CSF and the goal, but also to guarantee no

contradictions among metrics, something that

would lead to serious conflicts in the system.

Identify and

scrutinize the

measuring system

(MS) in respect to

the goal and the CSF.

Identify the System

and its Goal.

START

Champion

Deployment and a

supporting team

nomination.

Building

the goal tree.

Executives biannual

questionnaire –modus operandi

baseline.

6. Follow the flowchart

in order to find the

area’s constraint. The paper “How to identify the area that

holds the constraint“ answers precisely what

to do in this phase.

7. By direct

observation or

predicted effect

confirm that the area

contains the constraint.

This point is well

explained in the paper

mentioned. It is assumed

that there’s only one constraint in the system

and it’s observable. At

this stage we intend to

focus our efforts in what

will bring highest return,

goal units and also good

stakeholders support. The area that holds the

constraint should coincide with the lowest score

area, assessed in point number 2.

8. Revise the goal tree and identify the

corresponded necessary condition. The objective is to link the area that holds the

constraint to the corresponded necessary condition

written in the goal tree. It is assumed that this link

is a triviality or at least it’s possible to add a new NC to find that link, if necessary. This is a good

opportunity to scrutinize the tree. The team will

make sure that a particular NC isn’t missing and the scope for future improvements is well defined. For

instance, imagine that the team came to the

conclusion that the area that is holding the

constraint is at the supplier. The NC described in

the goal tree most likely nearer that area could be:

“raw materials short lead times, from order upon

delivery”. That is, by the end of several improvement projects one is expecting to reduce

aggressively the raw materials lead time, because

this is the area that is stopping the company to

achieve more of the goal.

9. If the NC is not a triviality identify what is

value to the customer.

Following the previous example, not always people

agree on what “short lead times” is. When certain

terms are poorly defined communication becomes

faulty and the act of managing suffers. In order to

minimize subjectivity it is important to confirm or

discover what means value to the customer. Not

only customer satisfaction is a necessary condition

to a viable business but also it would be unthinkable

to work on something that the customer doesn’t care. As a consequence, by the end of this phase we

have to make sure that customer’s needs and requirements are well understood. This corresponds

to the minimum knowledge a company must

possess in order to thrive.

10. Identify the NC metrics, their actual and

future state. Now that is clear what that NC means we turn our

attention to measuring its current performance as

well as defining a target. It is assumed that the NC

is performing poorly, though is controllable and

easily measured. The target is set in a way that, if

achieved, the constraint will shift to some other NC.

Imagine that in the previous example the NC

metrics, their baseline and goals are:

11. Confirm that these metrics will put the

system closer to its goal, and there is no conflict

among them or with the Measuring System.

At this stage we want to make sure that people

agree with the problem. Otherwise, stakeholders

that may be penalized with the NC improvements

may show some active or passive resistance. For

this matter it’s important to: 1) reduce resistance to

improvement, 2) accept the scope of future projects

and 3) change, if necessary local metrics. This

exercise is similar to the fifth phase because we are

also looking for causalities between this NC and

others NCs and CSFs.

12. Nominate a horizontal process owner with

influence over that NC. In this phase we want to give a title (action) to the

horizontal process that is nearer the selected NC

which, in turn, is holding the constraint. This will

enable in the future (meaning tactic workshop) to

map the value stream and hence to shift from

systemic thinking to process thinking. Moreover we

want to elect a process owner. The owner should be

someone with autonomy to make changes, someone

who is penalized or is benefited with the process

performance and also highly respected. Following

the previous example: Horizontal Process –

Receiving order, transforming raw material “A” to finished goods and delivery; Process Owner –

Company logistics’ director.

If the NC is not a

triviality identify

what is value to the

customer.

Revise the goal

tree and identify

the corresponded

NC.

Follow the

flowchart in order

to find the area’s

constraint.

By direct

observation or

predicted effect

confirm that the

area contains the

constraint.

80%

16 days

Baseline

99%

7 days

Objective

19%Due date performance

9 daysLead time

GapMetric (Raw Material A)

80%

16 days

Baseline

99%

7 days

Objective

19%Due date performance

9 daysLead time

GapMetric (Raw Material A)

13. Developping

organizational

dynamics. The paper

“Organizational dynamics in the TBLS

strategy” addresses these

points. In the workshop,

time may be short to

close this item, but some

course of action has to be

taken. If necessary

“homework” is sent to

who is accountable for

the following:

• training in TBLS

• monitoring and

reporting

• recognition

• TBLS assessment

• communication

CONCLUSION The strategic workshop is a fundamental tool to

start the TBLS initiative with the right foot. This

event should take place every three or four months

so that any of the 13 phases may be revised and

updated. The main deliverables of the workshop

are:

System and system’s goal identified

Company’s performance self assessment New organizational chart developed

Goal tree developed

Measuring system validated

Area that holds the constraint identified

Most affected necessary condition

identified

Horizontal process and process owner

identified

Organizational dynamics developed (or

ongoing)

The inputs used for the tactic workshop will be:

Necessary condition metrics and goals

defined

Horizontal process to be improved defined

Horizontal process owner identified

References

[1] Castro, Ricardo A. (2014) O Proveito da

Dúvida – troque o peixe pela cana de pesca.

Leanpub.

Nominate a

horizontal process

owner with

influence over that

NC.

Developping

organizational

dynamics.

Confirm that these

metrics will put the

system closer to its

goal, and there is

no conflict among

them or with the

MS.

Identify the NC

metrics, their

actual and future

state.