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CIRAS - TOC - Fundamentals

What is the Goal?

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Many for-profit companies believe their goal is related to money.


 

Some would argue that the Goal is related to customers.


 

And others would argue that the Goal is related to jobs and the workforce.


 

The Theory of Constraints does not disagree with any of these three groups of people.  In fact, Goldratt contends that the owners of an organization are the only ones who define  the goal. Once the choice is made, however, the other two become necessary conditions.


 

For example, those companies who believe their goal is to make money now and in the future find that it is not possible to do so unless they also satisfy customers and employees now and in the future. If they seek money while abusing employees, they will experience high employee defection which almost always leads to high customer defection.


 

The company that chooses satisfying customers now and in the future for their goal will find it necessary to make money and to satisfy employees now and in the future.


 

And the company that regards satisfying employees as their goal will likewise find it necessary to make money and to satisfy customers now and in the future.

Whenever this CIRAS TOC web site refers to the "goal" of a company, unless otherwise stated, that goal will be to "make money now and in the future." If your organization has a different goal, remember that because making money now and in the future is a necessary condition of reaching your goal, the information about "making money" on these pages is still pertinent to your organization.