Provide an analogy for culture and teams that can help leaders understand systems thinking, through the lens of the Theory of Constraints.

Hydrodynamics of Local Optimization

A small amount drains, then a vacuum forms causing a stoppage of the flow of water, until a bubble of air passes all the way through to relieve it. This Stop-Start-Stop-Start whiplashing causes the entire system to THRASH with LOCAL OPTIMIZATIONS!

• Turmoil inside the system (notice the vortices/turbulence, very much like when a wave crashes on the beach)
• There is a lot of activity but it does not increase the rate of flow.
• There are many unproductive conflicts
• Many internal processes that do not add value
• Becomes captive of its own internal processes (think TPS report, silliness)

2x improvement over unaided approach. Effectively subordinates all other priorities to flow.

• In the neck of the bottle both air and water are moving at the same time, and in opposite directions
• Air has it's own continuous uninterrupted path
• Water has it's own continuous uninterrupted path
• All parts of the system are aligned to facilitate the continual paths of both Water and Air

4x improvement over unaided and 2x over spin assisted approach.

• The system is calm and stable
• Note the absence of both turmoil and pressure
• Doing the right things right

Ideally once a calm and stable system is established, the focus can shift to developing atomic teams.

Steve Mould

The teams are stable and change over long periods of time. Work flows through teams at a very fast pace.

• Atomic teams, in that all the parts to deliver the "large" work item are within the team, minimal dependencies.
• System defined guardrails are set to best serve the teams balanced by preventing local optimizations.
• Teams are making decisions within the framework of the system defined guardrails.