Goal Tree: Why must top management define the Critical Success Factors?

Top managers discovering the Goal Tree frequently ask what input they must give and how “deep” they should commit themselves, where is the point of handover to lower ranking managers?

In this article I remind some basics about the Goal Tree as well as the necessity for top management to define the Critical Success Factors.

Some Goal Tree basics

It is the owner’s prerogative to define the Goal of the organization they purposely created. The organization’s top management takes over by delegation and has to lead it toward the achievement of this Goal.

Yet many ways may lead to the Goal but all of them are not desirable and some of them are not consistent with the organization’s values, adrift from the core business or core competences. Therefore, in my opinion top management must define/recall the organization’s’ Goal as well as the few Critical Success Factors, which make the very top of the Goal Tree.

A quick reminder about Critical Success Factors

Critical Success Factors are the few very important objectives that have to be achieved just before achieving the goal.

The Goal Tree is built upon  necessity logic. To read more about necessity logic click here.

Critical Success Factors should be expressed in measurable units in order to serve as the high level objectives and KPIs altogether.

These targets must be set in accordance with the Goal and as long as these targets are not achieved, the Goal cannot be achieved.

Critical Success Factors are therefore top management’s dashboard, the few KPIs to watch in order to see if the organization is getting closer to its Goal or drifting away from it.

Direction, values and culture

Critical Success Factors are also giving direction because for achieving them it is necessary to roll out specific actions and ensure specific Necessary Conditions are sustainably fulfilled.

Setting the Critical Success Factors will constrain the lower structure of the Goal Tree, which is a network of nested Necessary Conditions. Thus giving clear directions on what to work on in order to achieve the Critical Success Factors and ultimately the Goal.

Conversely, not setting the Critical Success Factors would let all options open including those hurting the core values or taking the organization away from its core competences and what makes a corporate culture.

Furthermore, letting lower rankings set the Critical Success Factors would be equivalent to let the tool choose its work.

View Christian HOHMANN's profile on LinkedIn

Standing in the Ohno circle. And then?

Ohno circle is also known as “Taiichi Ohno’s Chalk Circle”, a circle drawn on the shop floor to materialize the observation point from where to learn to observe, see, analyze and understand.

The original method puts (commits?) the “disciple” in such a circle for extended time with instruction to watch and not leave the circle. After the time the master judged sufficient, he (would a lady-master do this to others?) will ask the disciple to tell what he/she have seen, of course expecting to feedback on something the master’s attention got caught.

I would probably never had impressed Ohno that way, nor would I have appreciated this kind of treatment. With such a vague assignment and a “creative brain”, my observation would probably have turned into a virtual mind stroll.

Getting a scolding afterwards for not having experienced an epiphany (e.i. the great revelation) while dreaming in my circle or for having dared stepping out of it would not have pleased me, at all.

As I never was never told to do it and never have done it this way, the reservations and benefits I express in this article are merely assumptions.

My reservations about the chalk circle

Holding a static position for observing and understand when there is no other reasons than the master’s saying so does not make sense.

Observation and understanding is certainly easier and more effective when observers can change point of view and ask questions.

Executing a task without knowing the purpose is not very motivating and just been told to “watch” without moving from the spot is not very respectful.

Hence my question: Couldn’t it be nothing else than a manager-humiliating exercise disguised as a master’s skill?

Being told to watch may lead to have too much to look at, especially when not familiar with the environment. Chalk circle promoters will answer that this is precisely what the exercise is meant for: get and overall impression then gradually become aware of things in foreground/background, what is normal and what is abnormal and eventually focus.

So far so good, but does a manager need such a constraint method and spend several hours to get a fair level of understanding? In the era of high speed and volatility, the understanding-to-time ratio does not make the chalk circle a method with reasonable ROI.

Lean Management has long promoted Gemba Walks, not Gemba Stands, where the motto is go see, ask why and show respect.

This way is probably far more effective than standing hours in a circle.

If it wasn’t the case, Lean gurus and the Lean community would have made it clear, long time ago.

Being convinced to have observations and analyzing skills and voluntarily spend time watching from a static standpoint may lead to erroneous conclusions, a risk easily mitigated when changing the vantage point and interacting with subject matter experts.

To me the chalk circle method looks outdated and rooted in asian master-to-disciple apprenticeship, no more fit for purpose in current times.

Benefits (Devil’s advocate)

Over the years and with more experience and wisdom, I’ve somewhat softened my first impression and could see some benefits about observing while “standing in a circle”.

There are some situations in which walking around freely to observe a situation and asking people questions is simply not possible.

In such cases, having developed ability to watch, analyze and understand is indeed a great asset. Think about my trade as a consultant during diagnostics or a buyer during a supplier’s assessment.

Organized factory tours are other instances with limited possibilities to move freely or get good answers to questions. Here again, the individual ability to observe and understand is a great asset as it will yield more information than the host is willing to share.

In some cases, the knowledge about something isn’t existing and there is noone to ask for explanations. I experienced this in a factory, facing a machine with unstable performances, in a noisy and space-limited location. Spending several hours in several sessions, taking data and observing the machine’s cycles helped me understand the kinematic and some of the malfunctions.

What to look for?

Alright, I have shared my cons and pros, now what can I recommend to look for when observing, in a circle or not?

  • Look for the sequence. In industrial production, in logistics or in services, what you’re looking at may be in some degree a repeatable process. What is the sequence? In what order are things done or do things happen?
  • Look for harmony. Mastered motions are seamless. Controlled processes are operating smoothly.
  • Count. Count the resources involved, the physical units moved, produced or consumed. Count the steps walked, the number of times one person have to stoop, to pick up the phone or turn to someone.
  • Estimate. If counting is not easy or impossible: estimate. Get a sense of duration, of time elapsed between two events.
  • Look for consistency. Do your counts or estimates repeat themselves sequence after sequence or do you see variations?
  • Look for disturbances. What/who is disrupting the flow? How frequent and how long is it?
  • Look for the bottleneck. Is some spot the accumulation point where flow is significantly slowed down? Why? Is it managed?
  • Search for the muri, mura and muda, the 3 evil doers from a Lean point of view. Muri and mura are lesser mentioned, so try to spot them first. Chances are muri and mura, if they exist, will induce some muda.

These are a few hints. The question list could go on endlessly. But if your observation exercise ends up with answers to most of these questions, it may have been worth the time spent.

Feel free to share your comments and experience.


View Christian HOHMANN's profile on LinkedIn

7 questions to help you reduce projects‘ duration

On one hand, in current competitive environment, time to market and speed to respond to customers’ needs is a Critical Success Factor, often more important than sales price.

On the other hand, projects templates used in companies have “grown fat” over time with an inflation of additional tasks, milestones and reviews, thus extending project’s’ duration.

>Lisez-moi en français

Why templates grew “fat”

Organizations dealing repeatedly with projects will soon develop templates of Work Breakdown Structures (WBS) holding the most current tasks and milestones. These canvasses speed up somewhat the project initiation and insure some degree of standardization.

Over time though, the copy-pasting from one project to the next, the addition of “improvements” and requirements as well as countermeasures to problems kind of inflate the templates and the projects. This in turn extends the project’s duration as every additional task not only adds its allocated time to completion, but also the safety margin(s) the doer and/or project manager will add on top.

Most of the countermeasures and special reviews were meant to be temporary, only for fixing specific problems. But hassle and lack of rigor soon let them in the next copy-paste template and over time their original purpose gets forgotten and those specific and temporary fixes end up being… standardized!

This is how loads of unnecessary tasks extend project duration without anyone noticing it.

In order to stick to delivering on due date, and in some extend reduce the project duration, Critical Chain Project Management (CCPM) proposes some solutions. Yet those solutions mainly concentrate on a smarter use of the margins without challenging the value and necessity of the tasks themselves.

Therefore, reducing the margins and sharing the risks with a common project buffer, everything else remaining equal, the reduction of the total project duration is limited.

Now, combining CCPM with a Lean-inspired approach, projects can be shortened even more.

Challenging every task

The proposed approach is to scrutinize every task and investigate about its usefulness and its added value, as well as about the allocated resources to achieve it.

The idea is to get rid of unnecessary or low-value adding tasks cluttering the WBS and reduce the workload placed upon the scarcest and most expert resources, reduce the related costs and most of all reduce the time required for completing the whole project.

In a Lean Thinking way these kinds of tasks are wastes of resources and time and should be eliminated. If it’s not possible to eliminate them, is it at least possible to to reduce them to the bare minimum?

Here are 7 questions to help you surface these kind of resource drainers and waste generators in your WBS

1. Is this task really necessary? Why?

As soon as the purpose of one task is not obvious and cannot be simply demonstrated, some investigation is advised. Before rushing to the conclusion it useless and can be eliminated, one must verify that the outcome of this task is not required elsewhere in the project as an answer to some regulatory, standard or technical requirement.

The next question can help to answer this one.

2. What would happen if this task wouldn’t been completed?

A really useful task should answer a need. This one can be explicitly expressed in the requirements or in a procedure for example. It can also be implicit and naturally impose itself.

Most projects embed lots of reviews, gates and reporting points. These are resources and time drainer added by anxious project managers and customers. Yet not every project has very high stakes neither is jeopardized. What can make sense for a very sensitive project is not necessarily required for EVERY project.

What would happen if tasks and deliverables related to these reviews, gates and reporting would be omitted?
If a try shows nothing happens, it’s either an evidence of:

  • the no/low value
  • the lack of rigor in project management and follow-up
  • the lost sense of reviews as a management ritual

I remember a manager having put on hold projects for which project managers didn’t demand reports or reviews several weeks after voluntarily stopping to report progress.

It ultimately led to unclutter the project portfolio of several “nice-to-have” or “to-be-done-when-we-have-time” projects and free valuable capacity for sellable ones.

3. Who will benefit the outcome of the task?

In a well structured WBS no task should end “nowhere”. Who benefits from a task, usually the successor, should be directly readable in the WBS.If it isn’t the case, the value of a task as well as the robustness of the WBS must be challenged.

4. Is this task adding any value?

Value-Added is something the customer is willing to pay for. When assessing the value of a task, the right question is: can the outcome of this task be sold? Is anybody ready to pay for it?

An alternative in product, process or software development exists though, which is creating new, reusable knowledge (Lean Engineering/Lean Product and Process Development). This is considered a kind of investment.

If a task adds nothing worthy to a paying customer nor new knowledge to the company, it adds no value. To keep it or not sends back to question 1.

5. Does this task really require this resource? Why?

Once the task is assessed as useful, the next question is about the allocated resource.

One good practice is to allocate the lowest qualified resources to any task in order to save the more competent and expert resources, which are scarcer and thus more precious, from the mundane tasks that can be achieved by more common and cheaper resources.

If a task requires a scarce, expert resource, the next question is: how come?

Overburdening scarce and precious resources is one major reason for projects taking long time as the flushing of their tasks backlog requires the project managers to level the load, thus push back the completion of staggered tasks.

Many project managers compete to have the best resources allocated to their projects. Success and reliability attract attention and any project manager wants the best team in order to achieve his/her challenge. Always picking the same best ones ends up with overburdening them. Besides, not challenging the lower performers will not help them to improve.

6. Can it be done differently?

The alternate ways to consider here are both technical solutions as well as alternate resources.

  • Technically: can it be done differently so that the scarce bottleneck resource(s) is/are less required? Simpler solution may require less expert resource to implement it, for instance.
  • At the resource level, is it possible to delegate to a lesser constraint resource? Is it possible to subcontract?

These alternates should be considered for the sake of project’s duration reduction first, then for cost efficiency.

7. Must this task be done at that moment/stage of the project?

Some tasks have some degree of liberty with regards to when they must be fulfilled. Moving their relative place in the project structure may help limiting the overload and load levelling.

Wrapping up

Challenging necessity and contribution of all tasks in a project helps reveal those useless and of low added-value. Getting rid of them shortens the project’s duration accordingly, provided those task are on the Critical Chain.

This reservation is a hint about where to look first: the string of tasks on the Critical Chain.

The second benefit of this approach is to reduce the workload of the scarcest, most constrained resources, thus reducing the effect of load-leveling, hence project duration.

View Christian HOHMANN's profile on LinkedIn

Do not overlook spaghetti diagrams

What is a spaghetti diagrams (chart)?

A spaghetti chart or spaghetti diagram is the visual description of an actual flow, a snapshot of what a given flow really looks like, not how the procedures expect it to be.

The flow depicted is the path in space (usually through a factory, an office, a building, a campus, on the shopfloor, between machines…) a product, a part, a human or a file follows.

When tracing the flow on a paper, with scaled outlines of machines, desks, offices and so on, the document ends up showing a kind of (cooked) spaghetti plate, as the flow is seldom going in straight lines.

Each line is more or less the distance covered and consequently the time spent in motion or transportation, given the travel speed.

Some more about the basics of spaghetti diagrams >here<

Spaghetti diagram are pretty disappointing at first glance. They look like a toddler’s scribbling on a sheet of paper nearly worn out by the many lines. Onlookers aware that this is an actual flow may get discouraged to understand the chaos at once.


Yet it’s not enough to simply recognize that the flow is a mess and something has to be done about it. What can actually be done?

1. Question the flow

If the “spaghetti” (flow lines) are numbered – I would recommend to do it whenever possible – so that the timely sequence can be seen, search for loops and the flow going back and forth. Then question why these loops and returns occur.

A silly reason would be an employee keeping returning to a computer to check the next item from a list instead of carrying the list with him/her.

The reason behind each line (motion, transportation…) should be challenged in order to identify any unnecessary tasks and suppress them, or to find ways and means to reduce them in space and time if they can’t be suppressed.

2. Question the nodes

It’s common on spaghetti diagrams to see “nodes”, i.e. points where the flow joins to and gets away from, several times during the observation period. Such nodes can be a computer where to get information from or where to input data, an information desk, a kanban board, an elevator, a staircase, a crane, etc.

The first question to ask about nodes is why do they exist? If the answer does not lead to an improvement idea, question their location: is it well situated or does the location force the flow to come back and forth to it? if a relocation cannot significantly simplify the flow, can the “node” be duplicated and its clone wisely positioned in order to simplify the flow, reduce distances, etc.?

3. Reconsider layout

It was common in the past to have specialized shops where only one type of operation was done, e.g. lathing, milling, drilling, etc. This was convenient for accountants happy to have  homogeneous shops for easy cost calculation. Lean soon realized the wastes of transportation of parts to be processed between the shops, so flow lines were introduced. In some cases the flow is made unnecessarily complex because the machines are not well located. This is a variant of point 2 (where it’s easy and straightforward to duplicate inexpensive means), in which one must consider rational and optimized machines layout according to the path material or parts have to follow.

4. Consider choreography

According to Wikipedia, Choreography is the art or practice of designing sequences of movements of physical bodies. What I mean is combining the movements of two or more people in order to simplify and speed up the flow. This is usually interesting when motions are extended because someone has to work in front and in the back of some equipment and machine and needs to go around it frequently. By assigning people to front and others to back and synchronizing their activity, the overall duration of a cycle can be reduced. This is a common solution for quick changeovers on some production lines, cells or machines.

5. Consider crunching space

Extended routes i.e. long spaghetti can be caused by available space. Would bringing things together in a tighter space help to simplify flow and eliminate some of the wastes of motions and transportation?

This is one reason why U-shaped manufacturing cells appeared. They can be manned and supervised by less people, losing less time walking from one end to the other. The material flow is also shortened.

Besides, Leanness is correlated with compactness. Think about the relative need for lighting, cooling or heating, the cost of surface in rent or investment… Abundance of space usually attracts clutter and excess inventories, which ultimately can hinder flow.

Do not overlook spaghetti diagrams

As we have seen through these few examples, the mundane sketch can be of great help when analyzing the flow. It might not suffice by itself to solve all flow issues but can give a nice and easy head start.


View Christian HOHMANN's profile on LinkedIn

Could Six Sigma have more harmed than helped?

I started my career in the heyday of Total Quality Management (TQM) in France, beginning of the 1980’s and witnessed over the following years how the TQM trainings and deployments built a quality-aware culture in the companies and spread to everyday’s life.

Over time though, other “Japanese Methods” became fashionable and the hype was on the flavor-of-the-month, something the rich Lean toolbox had plenty to offer.

Quality still was a hot topic, but more for getting ISO9000 certified than delivering greater value to customers. The latter was now more a goal for Lean, seamlessly taking over the TQM legacy.

Then came Six Sigma, rewamping TQM with more math inside and those irresistible colored belts. Six Sigma was not intended to merge with anything else, hence the coining of “Lean Six Sigma” or “Lean Sigma” to describe the attempts to merge the two.

Reflecting on nearly 40 years of evolution of the business philosophies, approaches or methodologies, could Six Sigma have more harmed than helped?

Reminder about Total Quality Management (TQM)

What made Total Quality Management (TQM) “Total” was the aim of embarking ALL employees to participate in working toward a common goal: satisfy the customer.

Group activities (quality circles) were organized in order to get everybody’s brainpower, knowledge or understanding about quality issues and the ways and means to solve them.

A simple toolbox holding basically 7 tools was made available to everybody. Those tools were simple enough that a light training and moderate coaching would suffice for anyone to understand and use them. The required level of math was not more than basic arithmetic operations. Everyone was considered a Subject Matter Expert and was invited to participate.

The 7 tools are (minor variations can be found):

You may check my post about these tools >here<

Once problem solving started, continuous improvement would follow. Besides improving value for customers TQM brought also a sense of purpose to all stakeholders, the understanding of how their daily tasks would contribute to bring flawless products or provide great services to customers, turning them into loyal ones and insuring the future success of the organization.

When Lean came to enlarge the scope, it embedded TQM so that there was a continuum and the same people would keep on with a greater variety of problems to solve.

Six Sigma and its colored layers of expertise

Six Sigma is a different approach in which (originally*) statistical math play a key role.With new mathematical knowledge required, the participants roughly divided in three groups:

  • Those lacking the math
  • Those having limited knowledge of it
  • Those having the knowledge or able to get it

To distinguish the levels, martial arts inspired colored belts were created, making the hierarchy of knowledge and related prerogatives official. From then on the working groups switching from total participation regardless to rank and knowledge in TQM and Lean  to Six Sigma, now divided between the few geniuses and their many servants**.

*Over time some “Six Sigma” programs softened up on data and math, promote almost only DMAIC and 5S

**A great quote (approximately) by Jim Collins’ “Good to Great”

The Six Sigma “aristocrats” define what is to be done and the lower ranking take over the mundane tasks to prepare data and stuff for the masters to do their science on. The low ranking participants, awarded white and yellow belts, are less and less involved and empowered, eventually losing the sense of purpose.

All that made TQM and later Lean so great and acceptable by shopfloor people fades away. Interest also fades, as only few people are attracted by the abstract side and difficulties of statistical math.

On top of that, the Black Belts and Master Black Belts, usually challenged and rewarded on the achievements they lead, keep close control of the rollouts, so that they (purposely) become bottlenecks, a limiting factor to solving more problems.

Now it seems to take ages before getting a problem solved, while it was much quicker to those who have experienced simpler, more practical and pragmatic approaches.

Could Six Sigma have more harmed than helped?

Here we come to the question : Could Six Sigma have more harmed than helped? Well, there is no single answer. Six Sigma proved great to solve tricky problems that required more hard science than the simpler methods and tools.

  • Six Sigma reinvigorated quality when this discipline was turning into ensuring compliance to standards, regardless to results.
  • Six Sigma, just as lean, has been deployed properly and sometimes it was misused.

So everything is not just black or white.

Yet I assume that the bad uses outnumber the good ones, that marketing dressed a scientific method with fancy dresses and greedy promoters sold it as a one-fits-all trendy cure to all troubles.

I therefore do not believe in true overall quality improvement and most of all I fear that this segregated approach, with savvy experts on one side and driven doers on the other, turned many people away from developing their own problem solving skills and being engaged in improvements.

For the latter, yes I believe Six Sigma has more harmed than helped.

Your comments are welcome.

View Christian HOHMANN's profile on LinkedIn