bail out, Barnanke, brand building, Business and the buddha, deferred expense, Eliyahu M Goldratt, interdependent co-arising, management accounting, Occupy Wall Street movement, Prof Boman Moradian, Prof Harkant Mankad, Prof Ram Kumar, Professor Tomas Lopez, The Buddha, The goal, Theory of Constraints
Prof Moradian taught us concept of the Theory of Constraint. He also suggested us to read a book by Eliyahu Goldratt – The Goal. In the novel, protagonist is struggling with the operational inefficiencies of his plant and therefore facing a constant fear of management decision to close the plant.
Well, what is this theory of constraints (ToC)? In brief ToC states that “A chain is no stronger than its weakest link”. I was thinking that this concept is applicable to our society too. We are evolving, we are constantly developing some thing or the other, society is a sort of factory. And the concept of the ToC applies equally to our life. Look at it this way if rich becomes richer the poorer would become weaker link of the society. Have you heard that during recession crime rate increases? This is ToC for our society. Lately, lot of demonstrations are happening across world by the title Occupy Wall Street. This is where I think that ToC can be applied in the society.
I thought about interdependent co-arising and the Theory of Constraints in conjunction. My understanding of interdependent co-arising is that – we are all dependent on each other and for growth of each individual other has to necessarily grows. In other words, if society wants to evolve, everyone in the society has to evolve. The weakest link of the society may hamper the growth of society in total. Here I see a solution to the constraint, perhaps a socialistic one. We as a society have to help each other to grow (strengthen the weakest link), otherwise we would see increasing “Occupy Wall Street” kind of movements or increasing crime rates in future.
I shared these thoughts with Prof Moradian and he said the idea is good why don’t you think about throughput and operating expenses and develop this concept of ToC in society further? This made me dig deeper. It is said that ‘a stitch in time saves nine’. If we rewind to 2008, after months of searching for alternatives Mr Barnanke, Mr Paulson and others had to bail-out banks of USA. Why not we start doing something now and for future. I see the operating expenses of this approach as deferred expense of brand building (building society) exercise for future. The throughput of the exercise would be availability of competitive, capable and intelligent work force for companies. These capable people would be the spenders of tomorrow – moving the wheel of consumerism forward – effectively, the solution may not be as socialistic as I think.
Related blog – Ideate – save the sinking ship