Eliyahu Goldratt is a famous Israeli business management guru who revolutionized the manufacturing industry.
In his book “The Goal”, he shows that an enterprise without a correct goal is destined to be unprofitable.
The main goal of any business, according to Goldratt, is to make money. This can be done by reducing tied capital, operating costs and increasing the rate of income generation.
Seeing the factory as a whole, rather than a fragmented part, opens up problematic parts — bottlenecks. Bottlenecks are those places that slow down the entire manufacturing process. These exact processes reduce the speed of production, lead to delays, a decreasing amount of orders, and, as a result, revenue. This means that improving the bottleneck processes will improve the work of the entire system.
In product development, it is very easy to get lost in various KPIs, and performance metrics, and fill the backlog with tasks so that developers have something to do. In fact, the main goal of any product is to generate and maximize revenue — this is the only and main metric.
So, what is your goal?
