Beyond the Phoenix Project - a conversation with Gene Kim and John Willis John Willis, Director of Ecosystem Development, Docker Gene Kim, author, researcher, and founder of IT Revolution A fireside chat - looking beyond "The Phoenix Project."

1. @RealGeneKim1
Core Chronic Conflict: Production
Manage
production
effectively
Protect sales
Control costs
Increase
inventory
Decrease
inventory

2. @RealGeneKim2
Core Chronic Conflict: Distribution
Effective material
control
Reduce
customer
delivery lead
times
Increase
predictability
of sales
forecasts
Keep inventory
close to
customer
Keep inventory
close to
supplier
And the TOC community has applied this lesson to various other
disciplines Distribution, Project Management, Sales, etc…
The core chronic conflict is usually broken through single-piece flow.

3. @RealGeneKim3
Core Chronic Conflict: Technology
Ensure
enablement of
business goals
Respond to
urgent
business needs
Provide stable,
secure, reliable
service
Complete work
quickly
Complete work
more slowly

4. @RealGeneKim
Organizational Conflicts develop and block the achievement of the Goal
Partner with
Suppliers
Focus R&D Team
on new products
Develop
New
Products
Implement ISO
9000, TQM etc
Focus R&D Team
on current
products
Improve Product
Quality
Increase stock
levels
Improve
Material
Availability
Collaborate
with few
Suppliers
Reduce input
Costs
IMPROVE
SALES
IMPROVE
PRODUCTION
STRATEGIC OBJECTIVE
↑ Sales
IMPROVE
PURCHASING
STRATEGIC OBJECTIVE
↓Costs
THE GOAL OF SYSTEM
Make (more)
Money
now and in the future
Organizational conflicts caused by
CONFLICTING “RULES” / ASSUMPTIONS
Organizational conflicts caused by PHYSICAL
CONSTRAINTS / SCARCITY
Level 1
Level 2
Level 3
Level 4
Level 5
Conflict Cloud structure we use in TOC
to IDENTIFY AND UNDERSTAND
organizational conflicts and the
Undesirable Effects they cause
Execution
UDE UDE UDE UDE
Buy from most
reliable supplier
Buy from lowest
cost supplier
From Alan Barnard by Permission

5. @RealGeneKim
5
Current Reality Tree (2005)