Theory of Constraints Institute
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TOC Consulting vs. Strategy Consulting


Having burned their fingers on McKinsey, Booz Allen or perhaps Bain, experienced clients may find themselves searching for something new.
TOC practices contrast starkly with conventional white shoe management consulting. This quick reference guide compares the differences, so that you can judge for yourself:
Bottom-line Orientation

Strategy Consulting

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"Strategic Objectives"

TOC Consulting

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Goal = Profit & Cash Flow

For publicly owned corporations, The Goal is to make more money (not to become market leader, increase market share, increase margins, etc.). Our approach is geared directly toward improving cash flow and/or profitability of the business, not spinning elaborate strategies. Training in Throughput Accounting makes it easier for all people in the organization to relate to this Goal and continuously improve it. The Theory of Constraints Institute also works to unify and explicitly align all members of the top team toward a single, bottom-line driven performance metric.

This does not mean that we help you "cut costs." In fact, we avoid layoffs and retrenchment under all circumstances ... when attempting to trim fat, it is easy to accidentally cut muscle or sometimes even bone! Instead, we find that increasing the top line, specifically the contribution (or Throughput) has a far larger impact on profits than trimming costs. When costs are controlled, or held constant, while raising Throughput profitability can often double or triple.

Quick Impact

Strategy Consulting

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3-10 year horizon

TOC Consulting

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Initial benefits within 3-6 months

Implementing the Theory of Constraints in the right sequence (see Journey Roadmaps) creates a series of "quick wins" which motivate the team to try even harder. These benefits compound on one another as time goes by (and often continue expanding AFTER the engagement is complete).

Execution Follow-through

Strategy Consulting

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>80% DIAGNOSIS-focused ...
Consultant assumes minimal
role for implementation

TOC Consulting

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>90% EXECUTION-focused ...
Client-consultant partnership
with JOINT RESPONSIBILITY

TOC as developed by Dr. Goldratt is famous for execution and follow-through which drive visible results. It is about customizing proven solutions and aiding implementation rather than working out elaborate blue-sky strategies.

Useful Final Deliverable

Strategy Consulting

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Monster report / PPT

TOC Consulting

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Practical training & mentoring

We do not believe in investing months or even years diagnosing elaborate solutions and writing 147-page reports. Rather, we train and mentor the team throughout the course of the engagement to ensure that envisioned improvements become reality and carry staying power.

Upfront Team Buy-in

Strategy Consulting

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Buy-in is the FINAL step

TOC Consulting

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Buy-in is the FIRST step

Our engagements begin with training and team buy-in activities to navigate the 6 Layers of Resistance. This process continues throughout the course of the engagement, rather than being attended to at the end, like an afterthought.

CEO Involvement

Strategy Consulting

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Occasional

TOC Consulting

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Weekly interactions & updates

TOC Consulting demands frequent interactions and reviews so that decision-makers stay abreast of progress. Working hand-in-hand with the consultant addresses implementation issues as they arise, which goes a long way toward ensuring short and long-term success.

Low-risk Fees

Strategy Consulting

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PER HOUR fees
(irrespective of success)

TOC Consulting

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70+% SUCCESS-BASED fees

We are available to serve clients as much as they require, never more and never less. It is unfair to ask you to make investment decisions every time something needs to be discussed or clarified. For example, does a particular issue justify a $2,000 visit or just a $500 phone call? It is impossible to judge. No one should ever be caught in that position. This also applies to your larger team. When the meter is ticking, they may hesitate to share important views or critical information, afraid of running up costs. In order for a project to be successful, timely information flow is essential and must not be compromised.

There is nothing worse than the nagging feeling that you have paid through the nose for recommendations your team may never implement. TOC Consulting ensures that you pay only in according to financial progress achieved!

Learn More

If you would like to know more about how the Theory of Constraints Institute and our partners can make your business ambitions come alive, register below. We will contact you to set up a mutually convenient meeting time.

 
 
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© Copyright 2020
TOC Institute
  • About
    • About TOC Institute
    • Tribute to Goldratt
    • History of TOC
    • Executive Board
  • Fundamentals
    • Theory of Constraints
    • Constraint Definition
    • What is The Goal?
    • Five Focusing Steps
    • Getting Started in TOC
  • Knowledge Center
    • The Goal Summary
    • Identify Your Constraint
    • TOC Applications
    • Theory of Constraints PDF
    • TOC Thinking Processes
    • Articles >
      • Stock Clearance
      • TOC Consulting vs. Strategy Consulting?
      • TOC in India
      • Mafia Offer Marketing
    • Recommended Books
  • Services
    • Business Coaching
    • Open Workshops >
      • TOC Thinking Process Boot Camp
    • In-House Training
    • Advisory Services
    • Feasibility Studies
  • Contact Us