The Goal by Eliyahu M. Goldratt Review

I have heard about “The Goal” on several occasions from several friends during the years, and last week I have decided to read the 3rd edition of The Goal by Eliyahu M. Goldratt.

Eliyahu M. Goldratt (1948 - ) is an Israel-born physicist turned business consultant, the originator of the theory of constraints (abbreviation: TOC). He claims that he applied the scientific method to resolving some permanent problems of organizations.
Source: Eliyahu M. Goldratt , Wikipedia

The Goal is almost 400 pages, written as a novel. Main character, Alex Rogo, is a plant manager at UniCo, and his factory is facing troubles. The book is written from Alex Rogo’s perspective. It is a very easy to read book, in fact it took me two evenings to finish the book. Third edition has interviews as bonus feature, and interviews give a different perspective to the readers from real life cases.

If you are in production, accounting, or organizational part of business, you must read this book. As an engineer who has worked in “Computer Integrated Manufacturing” field, I was very impressed with some techniques offered by the author, all from common knowledge. Simple logic works in any business field, and Eliyahu is a business genius who can shape simple logic into advanced tools to solve major problems.

I’d highly recommend this book to all entrepreneurs, and managers in corporate environment. After reading “The Goal” you will look at business as system, and will have a greater perspective of solving problems in businesses.

Below is a part of a reader’s review (from Amazon.com reviews) and it summarizes the main concepts in the book:

Let me describe some of the many levels on which this novel is valuable.

First, the book explains how to see businesses as systems as well as any other book on this subject. It compares favorably in this area to such important works as The Fifth Discipline and the Fifth Discipline Handbook. The metaphor of how to speed up a slow-moving group of boy scouts will be visceral to anyone who has done any hiking with a group.

Second, the book helps you learn how to improve the performance of a system by providing you with a replicable process that you can apply to analyzing any human or engineering system. The primary metaphor is improving a manufacturing process, but the same principles apply more broadly to other circumstances.

Third, you will experience the power of the Socratic method as a way to stimulate your mind to learn, and to use Socratic questions to stimulate the minds of others to become better thinkers and doers.

Fourth, the authors also use problem simulation as a practical way to help you experience the learning process they are advocating.

Fifth, the book is unusually good in bringing home the consequences of letting your business process run in a vicious cycle: Your family life may also.

The pacing of the book is especially good. You are given time to stew with issues and come up with your own ideas before sample answers are provided by Alex and his staff in the novel.

Editorial reviews from Amazon.com about The Goal gives further details about the book.

Editorial Reviews

From Publishers Weekly
In this intriguing, readable business novel, which illustrates state-of-the-art economic theory, Alex Rogo is a UniCo plant manager whose factory and marriage are failing. To revitalize the plant, he follows piecemeal advice from an elusive former college professor who teaches, for example, that reduction in the efficiency of some plant operations may make the entire operation more productive. Alex’s attempts to find the path to profitability and to engage his employeesi n the struggle involve the reader; and thankfully the authors’ economic models, including a game with match sticks and bowls, are easy to understand. Although some characters are as anonymous as the goods manufactured in the factory, others ring true. In addition, the tender story of Alex and his wife’s separation and reconciliation makes a touching contrast to the rest of the book. Recommended for anyone with an interest in the state of the American economy.
Copyright 1986 Reed Business Information, Inc.–This text refers to an out of print or unavailable edition of this title.

From Library Journal
Alex Rogo manages a failing manufacturing plant, and his marriage is on shaky ground due to his long work hours. When his district manager tells him that profits must increase or the plant will be closed, Alex realizes he needs help. He turns to Jonah, a former professor, whom Alex discovers is now a management consultant (although Jonah’s field is physics). With the help of the enigmatic Jonah and the plant staff, Alex turns the plant around while at the same time abandoning many management principles he previously thought were ironclad. This multivoiced presentation is lively and interesting and offers food for thought for managers in any field. The performances are natural and unaffected, with sound effects to enhance the illusion of reality. Although it is a novel, this title is more appropriate for business collections.
- Melody A. Moxley, Rowan P.L., Salisbury, N.C.