WHAT IS SYSTEM THROUGHPUT?

System throughput is the ability of the organization to produce value over a period of time.

Every value stream of the organization is dependent on the throughput of the system. It is limited to the capacity to deliver one unit in x-number of units of time in a given phase. The smallest capacity of the value stream is also referred to as a bottleneck and is crucial to be identified and removed to open overall organizational productivity. It is well-described in the theory of constraint.

POTENTIAL RISK

System throughput of the enterprise determines the velocity with which the organization is capable of delivering the value through acquisition>integration>change management of the practices. Ultimately, system throughput is the most important factor that will determine the ability of the organization to execute on the entire Value Creation Plan (VCP). Without clear throughput, the organization may fail to raise capital towards the goals outlined by the Board of Directors.

CONNECTED PROCESSES

  • Investor Management Process
  • M&A
  • Culture/People Integration
  • Core Processes Implementation
  • Strategic Filter
  • Prioritization (WSJF)
  • Pre/Post Acquisition Pre- and Post-Acquisition Assessments
  • Training
  • Quarterly Goals/Rock Planning
  • Implementation of VCP
  • Capacity Reservation Process
  • Change Management
  • Data-driven Change Management
  • Data-Driven VCP Initiative Process
  • Horizon 2 Experiments
  • ML Data Model
  • Horizon 3 Experiments

BURNOUT PREVENTION

Without clear system throughput management between the upstream (Acquisition Stream) and Downstream (Integration and Change Management Streams), there is a high risk of organizational work overload, creating a feeling of lack of control, and insufficient reward perception. Throughput management is one of the most significant processes that can reduce the risk of burnout.

DE-NOVO AND FRANCHISE

De-novo, as well as franchise strategies, need to focus on system throughput upstream to have a precise estimation of system scalability. A slow start with process standardization will position the organization for success in the future scaling.

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