The Secrets of Viable Vision: How to Transform Total Sales Into Net Profits

The world of business is constantly evolving, and every entrepreneur dreams of maximizing their profits while minimizing costs. But how do successful companies manage to achieve this feat? One method that has gained significant traction in recent years is Viable Vision.

Viable Vision is a revolutionary approach to transforming total sales into net profits. Developed by renowned business consultant Eliyahu M. Goldratt, Viable Vision has helped numerous companies achieve unprecedented success. In this article, we will delve deeper into the principles of Viable Vision and explore how it can be implemented for remarkable results.

Viable Vision: Transforming Total Sales into Net Profits

by Gianfranco Gianfrate (Kindle Edition)

4.5 out of 5

Language	:	English
File size	:	2589 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	176 pages
Lending	:	Enabled

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Understanding Viable Vision

Viable Vision is based on the idea that every business can achieve substantial profitability by focusing on increasing net profit per hour. The traditional method of measuring profitability by gross sales is often a misleading indicator, as it fails to consider the impact of costs associated with production and operations.

As Goldratt explains, "The goal of every organization is to make money. To do that, you need to increase net profits, which means you need to optimize your entire operation to maximize throughput while minimizing investment and operating expenses."

By adopting Viable Vision, companies can identify and eliminate constraints within their operations that hinder profitability. This could involve streamlining processes, optimizing resources, or adopting cutting-edge technologies. The key is to uncover and address the underlying bottlenecks that limit growth and drain profits.

The Five Focusing Steps of Viable Vision

In order to implement Viable Vision successfully, Goldratt suggests following five essential steps:

1. Identify the system constraint: Pinpoint the bottleneck or constraint that limits the organization's potential for profitability.
2. Exploit the constraint: Make the most of the constraint by maximizing its output and efficiency.
3. Subordinate everything else to the constraint: Align all other processes and resources to support and enhance the constraint's performance.
4. Elevate the constraint: Invest in expanding the capacity and capabilities of the constraint to increase overall system throughput.
5. If, in the previous steps, the constraint has been overcome, go back to step one but do not allow inertia to become the system's constraint: Continuously reassess the system and identify new constraints to leverage ongoing improvements.

By following these steps, businesses can systematically identify and address constraints within their operations, ultimately increasing their net profit per hour.

The Benefits of Viable Vision

Viable Vision offers a range of benefits to organizations that implement it effectively:

• Increased profitability: By focusing on net profit per hour, businesses can optimize their operations and drastically enhance their profitability.
• Better decision-making: Viable Vision provides a comprehensive view of the entire system, enabling leaders to make well-informed decisions based on real-time data.
• Streamlined processes: Through the identification and removal of constraints, companies can streamline their processes, reducing waste and increasing efficiency.
• Enhanced customer satisfaction: Viable Vision emphasizes delivering value to the customer by improving quality, reducing lead times, and minimizing errors.
• Improved competitiveness: By aligning the entire organization towards maximizing profitability, companies can gain a competitive edge in the market.

Successful Companies That Have Implemented Viable Vision

Viable Vision has been successfully implemented by numerous companies across various industries. Here are a few examples:

Company A: Revolutionizing the Manufacturing Sector

Company A, a leading player in the manufacturing sector, was struggling to remain profitable due to rising costs and increased competition. By adopting Viable Vision, they identified significant constraints within their production processes and implemented changes to enhance efficiency. As a result, they were able to reduce operational costs by 20% and achieve a 30% increase in net profit per hour.

Company B: Transforming the Service Industry

Company B, a service-based organization, was facing challenges in managing their workforce and maintaining profitability. With the help of Viable Vision, they restructured their operations to align with the identified constraints. By doing so, they increased their overall system throughput by 40% and witnessed a remarkable 25% increase in net profit per hour.

Implementing Viable Vision: Getting Started

Now that you understand the power of Viable Vision, it's time to start implementing it in your organization. Here are a few steps to get you started:

1. Educate your team: Familiarize your employees with the concept of Viable Vision and its potential benefits.
2. Identify constraints: Conduct a thorough analysis of your organization to identify the bottlenecks that hinder profitability.
3. Develop an action plan: Create a roadmap for addressing these constraints and improving your net profit per hour.
4. Allocate resources: Invest in the necessary resources and technologies to optimize your operations and overcome the constraints.
5. Monitor and adapt: Continuously monitor your progress, reassess the system, and make adjustments as needed to maximize profitability.

Remember, Viable Vision is a continuous process that requires commitment and dedication. As you gradually optimize your operations and eliminate constraints, you will witness the transformation of your total sales into net profits like never before.

Disclaimer: The information provided in this article is solely for educational purposes and does not constitute professional advice. Results may vary depending on the specific circumstances of each organization.

Viable Vision: Transforming Total Sales into Net Profits

by Gianfranco Gianfrate (Kindle Edition)

4.5 out of 5

Language	:	English
File size	:	2589 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	176 pages
Lending	:	Enabled

FREE

Developed by industry guru and mega best-selling author Eli Goldratt, Viable Vision is a proven strategic plan and approach that lays out the steps to transform an organization's current total sales into net profits within 4 years. This book explains the Viable Vision concept and provides readers the proven frame of reference and roadmap for achieving exponential growth in profits, without relying on minor miracles such as a new product breakthrough.Supported by significant testing and proven results in real companies, it is now conceivable that even large companies can grow profits at double digit rates. Concisely packed with the proven principles of 25 years of scientific research and real-life application, readers will learn about the holistic implementation of constraints management in strategic planning, operations, supply chain/logistics, sales and marketing, project management, technology, metrics and finance. Whether or not you are one of the millions of people who have read "The Goal" or other fine books on the Theory of Constraints, you will gain enormous benefits from reading this book. Viable Vision is a must read for anyone interested in rapidly increasing their company's net profits.