The Goal – Chapter 26 – Results Beat Vanity Metrics

Rogo debates the Scout hike dependencies with his kids over dinner. At the plant, decisions are made to pursue results rather than follow vanity metrics.

Highlights

“And I’m not about to stand by and let that happen just to maintain a standard that obviously has more impact on middle management politics than it does on the bottom line. I say we go ahead with this. And if efficiencies drop, let them.”

Leaders make decisions.

There is no point in failing, but doing so while following the rules.

Page by Page

P213 – “I’ll give you ten minutes, and then we’ll see which one of you comes up with the best idea to keep everyone together in the line.”

Rogo follows a Dale Carnegie method and “throws down a challenge.”

P214 – “Everybody is marching in step.” Sharon puts forward her drum idea to keep a uniform cadence.

P215 – “The Herbies (the bottlenecks) are going to tell us when to let more inventory into the system—except we’re going to use the aid of computers instead of drums and ropes.”

Rogo applies his children’s guidance to the plant.

P216 – “But maybe we can predict when to release material by some kind of system based on the data we’ve kept on both the bottlenecks.”

Ralph uses data to improve the plant’s flow.

P217 – “You can also attack the inventory problems in front of assembly.” Jonah

“I can crank something out in no time,” said Ralph, “but I’m not going to promise it’ll work.”

Ralph will make the effort – he isn’t sure if the first effort will solve the issue. He may have to iterate – as is called for in The Lean Startup.

P218 – “What happens if efficiencies all over the plant go down?” he asks.

If they still achieve the goal – then who cares? If it fails, the plant can reverse course. This is a poor plan and weak objection.

P219 – “And I’m not about to stand by and let that happen just to maintain a standard that obviously has more impact on middle management politics than it does on the bottom line. I say we go ahead with this. And if efficiencies drop, let them.”

Leaders make decisions.

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