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Showing posts from June, 2014

Goal: Making Money Now and In the Future

What is the Goal of a business?

This is the first question to answer in order to establish a process of on going improvement (POOGI). The goal must be clear, simple and measurable, and it must be understood by all players in the organization, who are involve somehow in improving the system.  A general goal could be something like this "To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow."as told by Alex to his team members in The Goal novel written by Dr. Eliyahu M. Goldratt. (in short making money now and in the future.) Therefore, any action that moves the organization toward this goal is productive and any action that takes the organization away from it is non-productive. (this is not the same as efficiency, forget efficiency for now, this is about productivity and effectiveness, I deal with efficiency later).

Actually, such a goal can be applied to many for profit organizations. Let's take …