Over the next few days, Tim follows up with some of the execs in prep for the upcoming Exec review. The first person Tim decides to follow up with is Ashley, the interim sales and marketing director covering for Micky. Tim takes the elevator to the executive floor and walks down the well carpeted hall to her office. Tim then carefully knocks on the door.

“Hey Tim, you are right on time. Come on in.” Tim slowly walks into her office. It has a huge window overseeing the company campus. In front of it is a very classic solid wood desk with a few chairs in front of it.

“Tim, feel free to sit down. I have just a few minutes and then I have my next meeting,” says Ashley.

Ashley is a tall blonde who is probably in her mid 40s. She wears a cream colored business-like skirt and jacket. “Sure,” replies Tim, “Thank you for fitting me into your schedule.”

“So Tim, I’m short on time. Is there something specific you want to discuss and I can try and help you the best I can.”

“Sure, I’m working with Gary and Randal to improve the company’s project management and engineering. But I am also seeing that a lot of the issues are crossing departments and holding back the company as a whole. I wanted to know from your side what key issues you were seeing in your area.”

“Why?”

“I believe that if we can help engineering it will not only help them, but help the company overall.”

“Kinda, if they succeed we all will exceed?” Asks Ashley.

“Yes.”

“Fair enough,” Ashley replies matter of factly. Pausing for a moment and thinking things over, she continues, “Like you said, the engineering issues are not just confined to engineering. Engineering has been regularly missing deadlines. The customer contracts we set up require key features to be delivered by set time frames. We regularly miss those dates and drop the features [crt 20]. This incurs penalties. Worse, we get less desirable terms the next time around or lose future contracts altogether [crt 25]. Micky has even been making regular calls, both within the United States and internationally to see what possibilities there are. But overall, we are not meeting our revenue targets [crt 26] and have to change something. But you should be aware of that already.”

“True,” states Tim. “So if we improved our ability to deliver, it would dramatically improve things?”

“Yes, once we can prove it was not a one-time success, we can work on repairing our damaged and strained customer relationships [crt 27]. Micky has been doing a tremendous job trying to keep them happy and not to drop our contracts. But he can only do so much. But honestly, betw een Micky and I and some of the other execs engineering has very much lost our trust. We do not see how they are going to improve. Micky once asked me to look into adding more product lines [crt 30], figuring if we made less per product we could try and make it up with more products.”

“This would make engineering’s work load even worse. It would cripple them,” says Tim, very concerned.

“Agreed. We considered it, saw how many additional lines we would need, and then dropped it. We didn’t think engineering could deliver. And there is more.”

“More?” Tim inquires.

“I understand. We have made great progress with engineering, Ashley. The development process is running better. We are on track to meet our milestones. Gary is pulling together the latest data now.”

“We have heard that claim from engineering before.”

“I understand. We are gathering the data to back up the claims and we are getting the schedules back in line. That will enable us to be on time and feature complete as well as enable us to do more R&D. That would make the products more competitive. That should help you improve the customer relationships [frt 19].”

“And if engineering sacrifices quality to hit schedules again?”

“We can add marketing checkpoints [frt 13] along the development process to review the feature development and ensure it is in sync with customer and contract needs as long as it is part of a change control process,” Tim explains.

Ashley looks down at her calendar. “It sounds promising Tim, but it really depends on Micky. My 3 PM meeting is just starting up. If you can excuse me, I need to call in. Possibly we can talk more after the board meeting and see.”

“Okay, thank you for your time.” Tim states as he walks out of Ashley’s office and closes the door. He hopes that the results and progress he has made with Gary and Randal are enough to show that things are turning around. At the same time, he is wondering if Ashley was holding back.

Tim wanders down a floor to the HR department. As he approaches Herb’s door, he hears him on the phone chatting and joking. Tim lightly knocks on the door. Herb looks up and over his reading glasses.

“Hey, come on in Tim. I’m glad to catch up with you again.”

Herb is average height, filled out with a bit of a belly and dressed in khaki pants, an untucked dress shirt, a vest, and comfortable dress shoes. “Sure Herb,” Tim responds, “I’m not interrupting?”

“No, never.” He tells the person on the other line he has a meeting and will catch him later in the day. “So Tim, sorry about the delays getting your desk and phone. With the new hires, a few people leaving, and moving things around, it’s been a bit chaotic.”

“No problem, Herb. As I noted in my e-mail I just wanted to follow up on a few things. I have been working with Gary and Randal to improve our project management and help engineering. I’m feeling several of the issues they are running into are not limited to engineering. Are there other issues you see holding back the company?”

“Sure Tim, I can help. Is this just for you or something else?”

“I’m talking with other managers and looking to see what their top-level issues are and trying to see how they interconnect. So I will just share the top-level issues not the details of the conversations.”

“And the audience is…”

“Exec staff,” said Tim.

“The high pressure to deliver was driving them away?”

“Tight deadlines, priorities switching, unrealistic schedules, and adding more work to already unrealistic deadlines have been most of the complaints I’ve heard during the exit interviews. I have heard from a few people that Phoenix is looking better thanks to your help. But yes, people are stressing out and burning out. Micky stepping up thin gs added more pressure.”

“Fair enough, Herb. Like you said, we are making great progress with Phoenix and we are getting back on track.”

“That is great to hear, Tim. It is nice to have some good news again. Things are still tight. I am hoping your changes are going to stick. One of the past items out of Micky’s Exec meetings that concerned me a great deal was his discussion to see if we could stem the corporate revenue bleeding by cutting 10% of the resources across the company [crt 29].”

“That is pretty drastic.”

“Things are tight and have gotten worse over the last few months, Tim. The various managers have already had to identify the resources for the 10% reduction and at the same time promise to maintain existing commitments.”

“Will Micky go through with the reduction?” Tim asks, concerned.

“Unsure. I figure it might come up in the Exec review. But Micky knows that it would be a short-term fix and in the long run likely do more damage than good. My guess is that it was a bit of a scare tactic to shake things up and get the managers to move and see how dire things are. I figured you should know, but please do not pass this info around. People are already jittery. Like I said, it’s good to hear you are making progress. Hopefully they can step it up and the company can focus on moving ahead.”

“Definitely. Gary has some encouraging results he will be reviewing in the Exec review. We are making great progress. As we get the schedules running better it should dramatically reduce the priority thrashing and unrealistic deadlines, and better manage the new requests, which will enable people to better focus and not burn out [frt 12].”

“Great to hear, Tim. If you need anything from my side, my door is always open.”

“Thank you for the support, Herb.”

Randal strides into Tim’s new cube. “So Tim, all settled in?” He looks around and sees the three blank gray walls of Tim’s cube—no pictures, no papers, just a laptop, computer bag, table, and a chair .

“Pretty much, Randal. It just became official a few days ago. It’s not much, but it works.”

“So how did the meetings with Herb and Ashley go?”

“Pretty well, Randal. I picked up a few more details that are helping me get a more complete overall picture.”

“Good to hear.” Randal says, a bit anxious. “So Tim for the Exec meeting coming up it will be just a small group of key people focusing on Gary and Micky’s updates. Me, you, and Gary can present the engineering update. Gary owns the overall update, but he often lets me cover a few slides that tie in engineering and marketing. You can cover any Critical Chain detailed questions that come up. As interim CEO, Micky will provide the update on the company strategy. The board itself has three members. Other than that there will be Herb and Ashley.”

“Who are the decision mak ers?” inquires Tim.

“Micky, Grant, and the external board members.”

“Hmm, I have meetings with Grant and Micky to talk with them before the Exec meeting. Do the external board members have any Critical Chain experience?” Asks Tim.

“Unlikely Tim. Mainly they will defer to Gary or Grant for the engineering details, then see how Micky weighs in. If everything falls in line, things will go forward. If there are disagreements then the whole board will step in, review the issues, and provide some directives that it will expect to be carried out. So we have some time, but not much. What is your plan to talk with Grant?”

“Mainly I need to get his buy-in. Not just to Critical Chain, but how everything is tied together and impacts the whole company.”

“Tim, you have just an hour with Grant and his schedule is pretty packed. You’re not going to try and fit in the whole high-level Critical Chain concepts, what is needed to implement, and we need a champion with him are you?” Randal asks, a bit nervous.

“No no. More succinct and high level. We have two phases. The first is the behind-the-scenes homework where we leverage our organizational analysis and work through the six layers of resistance. The second phase is the actual presentation to the customer where we conversationally pull key items from the work we did for the six layers.”

“So the six layers is like a 12-step program?” Asks Randal.

Tim sighs, “To buy in to a new concept such as the Theory of Constraints or Critical Chain, we organize our analysis into the six layers of resistance. This way we can step through our buy-in proposal in an effective and systematic way, help address people’s concerns, and help them understand and ideally agree to our proposal.”

Randal looks at Tim oddly.

“Here, let me walk you through the layers:

“Tim, why are you always so cryptic. You have a sales process. I’ve seen similar things before. Build rapport, learn something about the customer, understand their issues, etc..”

“Kinda. It certainly has parallels to a sales process, but also specific tie-ins to the Theory of Constraints tools. For example, ‘layer 1: lack of consensus’ is based on the CRT we have been working on.” Tim takes out the CRT diagram and shares it with Randal.

“Whoa! Tim that diagram is pretty complex. I have watched you build it. But someone seeing it as a whole, especially for the first time, can be pretty overwhelming.”

“The key part is that it captures all of the different issues, ties them together, and helps us focus on the organization’s core conflict and root causes of our problems.”

“Okay Tim, I can certainly agree that the CRT is capturing our issues, but please tell me you were not planning to share that with Grant or at least not on your first meeting with him?”

“It’s tempting…” Tim admits.

Randal looks harshly at Tim.

“It’s tempting since it took a good amount of work to create and it does a really, really good job of summarizing the issues and their interconnections, but like you said it’s a bit overwhelming especially if you are not familiar with TOC,” concedes Tim.

“That sounds much better Tim,” Randal says, breathing a sigh of relief, “So what is your real plan?”

“Similar to the conversation we had when we first talked about your company [Chapter 2]. I’ll pull out a few of the major issues that impact the company and are likely to resonate with Grant. From there, we can quantify how significant they are and confirm that he agrees that they are inter-related. Likely he knows how they inter-relate, but if not I have the CRT I can fall back on and conversationally walk him through. That should cover layer 1, which is to agree on the problem.”

“Hmm, Tim, couldn’t you have simply said you need to identify and quantify the customer’s biggest pain points and loosely show they’re inter-related? It sounds so much simpler.”

“Possibly. I guess. One other key item with the CRT and meeting with Grant. We need to be sure to blame the system. It is not that any one person or group is trying to undermine the company. The system, the way we operate, is holding us back. The CRT outlines this system and how it is interconnected. We need to focus our efforts on understanding, blaming, and changing the system.”

“Interesting approach. So the system is the fall guy and the one we go after.”

“It avoids finger pointing and helps us move forward in a productive and problem solving way,” explains Tim.

“I’m curious to see this in action. So what’s next?”

“I talk about the struggle (conflict) that the company is in, how it really challenges us, and how it drives the major issu es.”

“Why bother, Tim?”

“We want to focus Grant’s attention to one central and critical struggle. From there, we can propose our solution (layer 2) and then immediately start dealing with the next question, which is why do you feel this solution will address the problems (layer 3).”

“Hmm. It feels like you are taking all of the key pain points and pulling them all together into one single overall pain point/organizational struggle.”

“Focusing our efforts, yes. The main part is that we want to focus on the system and the challenges to the system, not any one specific department or person.”

“So Tim, how are you going to sell the fact that your solution is the one that will work and is better than other competing ideas, solutions, or products? As we say in sales, why should I buy this from you?”

“I have my FRT.” Tim then takes out his FRT diagram and shows it to Randal.

“As before, it would be fun to show Grant all the hard work that went into creating this and how wonderful it is. Unfortunately when you start showing CRTs, FRTs, and start using TOC lingo to people who are not familiar with TOC—instead of them being amazed by your insights—they in fact get turned off by the complexity and your arrogance in assuming they would understand something so new and different instantly. As you note, I will conversationally pick out a few key items, quantify them, and do my best to translate them into terms that are familiar to the organization and to that individual.”

Randal shakes his head back and forth, “Well Tim, as usual you are very through if not a bit overwhelming. Your sales model seems pretty complete. Just one last item. Where do you seal the deal?”

“Actually that is the last critical piece. Closing the deal. We are meeting with Grant for a reason. We should be sure we get Grant’s commitment to take some action, otherwise why have this meeting in the first place.”

“With the company running out of time and the Exec meeting coming up, we want Grant on our side. We need him to help promote and back up our recommendation,” restates Randal.

“Exactly.”

“Actually Tim, one more thing. Stepping back—why bother? I mean why bother with the organizational analysis, CRT, FRT, getting all of the execs to buy-in? Wouldn’t it just be simpler to just build the Critical Chain schedules, add the buffers, and implement it in engineering without the rest of the organization’s involvement?”

“It could work, but briefly. In the long run it would likely fall apart. As I noted in the factors for success [Chapter 3], the organizational buy-in is needed. If management is not on board and they see the project buffers, they will just cut them and that will undermine Critical Chain’s success. With the cut project buffers we are more likely to miss deadlines and in turn management will push even more to switch to some other methodology du jour. The same is true with the buffer management and project behaviors. Without management support they will not work and in turn the Critical Chain solution will not work.”

“So what if we got Gary and Grant behind it and told the others to let engineering manage the schedules the way they need to without interference?”

“It’s a team sport. We’re trying to improve the whole company. The whole system, not just one department. Think of it like a rowing boat. If everyone is in sync, we will move forward and quickly. If someone moves too slow or even too fast the whole boat goes off course. Just look at where things are at now. Engineering is struggling and Micky is just adding more changes and more work. They’re not in sync.”

Sighing, Randal concedes, “I guess you’re right, Tim. Ideally we need to get everyone working together. Engineering is just where we are seeing all of the issues.”

“Yep, speaking of getting everyone to work together, it’s time to meet with Grant.”

“Tim Tim Tim—the things you are getting me into…”

“I’m helping to build your character.”

“Ahh Tim…so many things I could say to that,” Randle chuckles.

Tim and Randal head up to exec row and over to Grant’s office. Like Ashley’s office, it is well appointed with filled book cases and a solid wood desk, and then it differs from there. Grant’s desk is covered with piles of paper. What does not fit on the desk overflows to the nearby chairs. Grant is easily in his 50s with black and gray peppered hair. He is dressed in a very sharp business suit and carries himself with an athletic stride.

“Hi Tim,” Grant walks up to the door to greet him. “I have been interested in meeting you.”

“Hi Grant, thank you for making the time to meet with me.”

“Hi Randal, please come in as well.”

“So Tim,” Grant starts, “I appreciate the time and effort you have been putting in working with Gary and Randal. Given the Griffin issues, your timing is pretty good.”

“Thank you, it’s a good group of people.”

“So Tim you called the meeting. What can I do for you?”

“With the Exec meeting coming up in a few weeks I wanted to talk to you about the Critical Chain work we’ve been doing and how it can have an overall impact on the company.”

“Fair enough, Tim. Gary and Randal have been keeping me up to date on the consulting work you have been doing as far as ramping them up on the Critical Chain methodology as well as the Phoenix schedule build. They have been very positive about it. So I was assuming this was something engineering and project focused.”

“How so,” Grant asks, curious to see where Tim is going with this.

After the meeting, Tim sits down with Randal.

“So Randal, are you ready for the final tweaks to the CRT?”

“Sure Tim. It looks like you have grown it quite a bit.”

“So I split the CRT to top and bottom since it was getting too big to fit on one page. Not ideal, but it works. On the top of the tree, we can see higher-level management issues. After meeting with Ashley I wanted to add and clarify two items. 22) We see that are competitors are catching up, specifically their quality is going up, their features are improving, and their costs are going down. The second was 27) we sour and lose customer relationships.”

“Makes sense Tim. Competition and customer relationships are two of her major concerns.”

“I also added two clarifications. First, 23) if our products are not competitive then 24) we will slip schedules and hold additional Exec reviews. Lastly, 21) we have less time to research is one of the consequences from 18) resources for future projects are unavailable.”

“Ug Tim, you are capturing even more complications.” Randal admits.

“Just trying to capture all of the major issues. Next is the bottom of the CRT. This is where the drivers of the higher-level management issues appear.”

“So Randal, based on our conservation with Grant I added that 12b) we oscillate between proprietary and generic features. In talking with Ashley and Herb, I am adding 30) management looks at adding more projects and 29) management is tempted to cut costs by minimizing staff.”

“Minimizing staff?”

“Management is under pressure. If we can’t make enough revenue from existing products there are two ways you can go. Add more products or reduce staff. Management has looked at both, but neither is viable.”

“A bit scary Tim, but yes. We have enough trouble with our existing products to try and add more. And we’re busy with existing products, so cutting staff will just put us farther behind. Just looking at all the issues you have captured on both pages makes me feel a bit more depressed abou t your doom tree.”

“Well, the goal of the CRT is not to depress everyone. The goal is to show the connections between the issues, see where to focus efforts, and show the compelling need to change.”

“Well Tim, we all knew we needed to change. This just is showing us how much has to change. It is looking like everything.”

“But the key is that everything is connected. We need to focus on the conflict between original requests and new requests and we need to look at what is going into 13) departments are stretched.”

“Well Tim, I knew engineering is a target, but in looking at 13) I can see eight arrows going into it. That is a target if I ever saw one.”

“We need to fix the system, not a specific issue or department. If we focus on the drivers (bottom of the tree) the changes should carry up through the tree with the help of a few key injections. Here, let’s walk through the FRT. It should be much more encouraging.”

“So a few quick additions: 13) we add marketing checkpoints per my discussion with Ashley and with 14) better products, which helps 19) our customer relationships improve. With 20) better revenues we can also make sure 22) p rojects are better staffed. Then we can add 5) we need to get Exec buy-in as well.”

“Whoa Tim, slow down. How about a short summary?”

“Sure. We put boxes 1-5 in place to help us successfully implement the Critical Chain. With the 6) Critical Chain in place, we can 7) better handle delays. If we can 9) put better change control in, we won’t flood the system with work. With 6) better schedules, 13) better QA, our products will be better 14). In addition, with 6) better schedules, 16) we will have more time to innovate and that will get us 14) better products as well. With 14) better products and 8) better schedules customers will be happier, we will hit deadlines, and revenues will increase.”

“Well, it sounds much better. We have worked on boxes 1-5 to put Critical Chain into place. With Phoenix and talking to Gary, I can see the schedules getting better. We just need time to see those results carry over to meeting the deadlines and happy customers. So yes, I can see we are getting there Tim. Interesting to see how it is all laid out here in your happy tree diagram. It will be interesting to see how well Micky will buy in to your plan, but real results on Phoenix will certainly get his attention.”

“We’ll my meeting is coming up with Micky shortly. Let’s grab some coffee and then we can strategize from there.” Tim suggests.