The goal is essentially to increase net-profit while increasing return on investment and increasing cash flow. Today we’re discussing The Goal by Eliyahu M. Goldratt.It is a business novel that Eliyahu used to introduce the “Theory of Constraints”, a sort of meta-theory for business (and life, really) that you can use to advance the output of just about any system. The Goal by Eliyahu M. Rating: 9/10. Read More on Amazon Get My Searchable Collection of 200+ Book Notes. High-Level Thoughts. Very much a “zero to one” book, where after you read it you see the world differently. Extremely helpful meta-tactic for evaluating how to improve systems, and I wish I had read it sooner.
Dr. Eliyahu M. Goldratt left the world of academics to found Creative Output, a company that developed Optimized Production Technology (OPT). OPT was the first software to provide finite capacity scheduling for production environments. Despite the early success of OPT, Goldratt realized that certain habits and assumptions held back the software from achieving its full potential.
In response he authored The Goal, a classic business book disguised as a gripping novel. Although the book did not feature OPT software, it was written to build awareness about harmful assumptions that slowed down OPT implementation. After The Goal got rejected by all major publishers, the Board of Directors of Creative Output began to grow concerned about the effort that their CEO continued putting into his side project. But with help from the owner of North River Press, The Goal was eventually published and went on to become a surprise hit.
Then something even more unexpected happened... companies began achieving greater success with just his book than when using the top-of-the-line OPT software packages! Eli lost the heart to sell his software and attempted to reposition Creative Output as a consulting firm. But declining revenues and Goldratt’s radical shift of focus caught shareholders off guard. Upset by all that was happening, the Board of Directors fired Dr. Goldratt as CEO his own company!
In response he authored The Goal, a classic business book disguised as a gripping novel. Although the book did not feature OPT software, it was written to build awareness about harmful assumptions that slowed down OPT implementation. After The Goal got rejected by all major publishers, the Board of Directors of Creative Output began to grow concerned about the effort that their CEO continued putting into his side project. But with help from the owner of North River Press, The Goal was eventually published and went on to become a surprise hit.
Then something even more unexpected happened... companies began achieving greater success with just his book than when using the top-of-the-line OPT software packages! Eli lost the heart to sell his software and attempted to reposition Creative Output as a consulting firm. But declining revenues and Goldratt’s radical shift of focus caught shareholders off guard. Upset by all that was happening, the Board of Directors fired Dr. Goldratt as CEO his own company!