Quality, Involvement, Flow

Dr. Domenico Lepore is an organizational scientist whose focus is on systemic manage- ment. He developed the Decalogue management methodology, together with Oded Cohen, world- renowned expert in the Theory of Constraints. The Decalogue provides a method for whole system transformation, from conventional, silo thinking to a systemic vision and practice. Domenico and Oded coauthored the book Deming-and-Goldratt: The Decalogue, published in the United States in 1999 by Dr. Goldratts publisher, North River Press. This was the first book on the Theory of Constraints to be published by North River Press that was not authored by Dr. Goldratt himself. Domenicos background is in experimental physics and he has developed an original insight into the design of organizations as networks of projects. He has led successful implementations of the Decalogue in dozens of organizations for almost two decades and unique applications of Theory of Constraints to highly complex business environments. Dr. Angela Montgomery has been partner of Domenico Lepore since cofounding their first Decalogue company in Milan, Italy in 1996. She has contributed over the years to the develop- ment, dissemination, and communication of the Decalogue methodology. Since moving to North America, she has developed a special interest in working with the Thinking Processes from the Theory of Constraints to bring systemic thinking for positive change to organizations. Angela has a PhD from London University in literature and science and has always been interested in crossing cultural boundaries. She blogs regu- larly for Intelligent Management and is author of the business novel The Human Constraint set in New York during the years of financial crisis. This book illustrates the power of a systemic approach and how it can point the way toward a sustainable future. Dr. Giovanni Siepe has a background in theo- retical physics. His research work on General Relativity has been cited internationally. He began working as a researcher in the microelectronics industry and he has developed patents in the field of power integrated circuits. He continued his career as a manager in the plastics/material industry, where he developed sig- nificant experience in international marketing. Over the last 12 years, Giovanni has worked at the advancement and dissemination of the Decalogue methodology, first leading the creation and development of algorithms and software (in liaison with the University of Salerno) for the management of complex systems, and later improving its integration with the use of Statistical Methods for managing organizational interdependencies.

1. Navigating the New Complexity...................................................1 1.1 Dividing Things Up Is No Longer the Answer..................................2 1.2 Useful Lessons from Science: From Parts to Whole...........................3 1.3 The Organization: A Whole That Is Much More Than the Sum of Its Parts...................................................................................4 1.4 New Leadership...................................................................................5 1.5 What Is a Leader?................................................................................6 1.6 Leadership and Knowledge................................................................6 1.7 Leadership and Selflessness................................................................7 1.8 Quality, Involvement, Flow.................................................................8 1.9 Leadership Thinking: Framing the Change as a Conflict..................9 2. Why Are We Stuck? The Inherent Conflict of Organizations.....11 2.1 Whats Wrong with a Hierarchy?.......................................................12 2.2 The Silo Sickness...............................................................................12 2.3 The Inherent Conflict in Any Organization.....................................14 2.4 Finding a Solution to the Hierarchy Conflict....................................17 2.5 A New Kind of Organization: Coordination Instead of Functional Reporting.........................................................................19 2.6 The Challenge of the Solution to the Hierarchy Conflict................20 3. Where Does the Knowledge to Move Forward Come From? The Giant Contributions of Dr. Deming and Dr. Goldratt..........23 3.1 Quality and Involvement through Deming......................................25 3.2 Flow and the Theory of Constraints.................................................27 4. What Is an Organization? The Fundamental Constituents.........31 4.1 A Closer Look at the Four Essential Constituents of an Organization.................................................................................32 4.2 New Awareness about Interactions..................................................34 4.3 Stakeholders and Corporate Social Responsibility...........................35 4.4 A New Organizational Design..........................................................35 5. How Can We Blend the Deming and Goldratt Principles in a Practical Way?......................................................................37 5.1 How a Deming and Goldratt Methodology Emerged......................38 5.2 Understanding the Organization as a System: Flowcharting the Processes.....................................................................................43 5.3 Variation and Its Importance for Managing Organizations as Systems..............................................................................................45 5.4 Variation and Complexity.................................................................45 5.5 Prediction versus Forecast.................................................................47 5.6 Adding the Constraint to the Organization Viewed as a System.......48 5.7 The Need for a Constraint................................................................49 5.8 Protecting the Constraint: The Buffer............................................54 5.9 Managing Variation and Constraint(s)..............................................55 5.10 The New Organization: Rolling Out the Solution of the Choked System.........................................................................57 6. Why Projects Can Become the Backbone of the New Organization.................................................................61 6.1 How People Come to Work Together: Process and Project............61 6.2 Systemic Project Management...........................................