by Dr Lisa | Theory of Constraints for Strategy, theory of constraints Marketing
I did not write last week. We were doing a boot camp in Kansas City plus a speech for a TEC/Vistage retreat in Michigan. It’s Mafia Offer Boot Camp Season. This is a good time of year to do a Mafia Offer Boot Camp because budgeting and preparation for next year...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Deciding on pricing for your products or services tends to consume a lot of time and can even be stressful. Typically we are looking for a price that 1) will help us to achieve our financial goals; 2) meet or exceed the value perceived by the market place (will...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints for Strategy
Question: How much excess capacity do you need to have to make a Viable Vision viable? Answer: It depends. Squeezing more capacity out of your existing operation without investment is relatively easy (you read about it in The Goal, Its Not Luck, and Critical Chain)....
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Question: Should I factor (sell) my receivables? I could use the cash, but the cost seems too high. How do I make this decision? Answer: This question is hard to answer without more information, so let’s look at an example: Let’s say it costs you $40 to make a...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion, let talk about Increasing Throughput. Throughput (as defined in Goldratt’s Theory of Constraints Throughput Accounting) is sales revenue minus truly variable costs. Therefore we can increase your throughput by either 1)...
