The questionWhose efficiency are you protecting, and at whose expense?
The authorFour decades of building aircraft. One question that would not go away.Read
Why this book existsYou know the meeting. What do you bring when explaining stops working?Read
There is a kind of tiredness that shows up in no report: the tiredness of justifying. At first, justifying works. You explain the quarter, the market, the supplier’s delay, the learning curve. For a while, the explanation buys patience.
But there is a point, and anyone who has lived through it knows exactly which one, where the justification stops buying patience and starts consuming credibility. The more you explain, the more it looks like you are just explaining.
This book was written so that you walk into that meeting with something other than one more justification. You walk in with a piece of reasoning, clear enough that leadership sees the gain together with you.
The arithmetic
Follow the numbers once, and you will not unsee it.
Nothing was built. Nobody was hired. The system is the same size. Move the flow and watch what happens underneath it.
| Per period | Before | After |
|---|---|---|
| Sales | $100,000 | $125,000 |
| Variable costs | $50,000 | $62,500 |
| Throughput | $50,000 | $62,500 |
| Operating expense | $45,000 | $45,000 |
| Profit | $5,000 | $17,500 |
Operating expense has not moved. Nothing new was built.
The extra flow brought $12,500 more throughput. The structure did not cost a cent more, so that money fell straight through to profit.
“Gustavo Valente does it the TOC way: highlighting what is simple and yet very effective. I highly recommend the book to every manager, most definitely managers of Operations.”Eli Schragenheim · international TOC expert, author and teacher
“A wonderful guide for anyone seeking ways to improve organizational performance. I wish this book had existed when I first started my TOC journey!”Mike Hannan · project portfolio executive and co-author of the PMBOK Guide, Eighth Edition
The ideas
Fifteen ideas you can use before the book arrives.
Everyday scenes, one per chapter. Each one ends in a question. Six of them, to start.
The questionAre you measuring margin per unit, or throughput per minute of the constraint?
The questionBefore automating, is the flow worth accelerating?
The questionWhen results disappoint, does more pressure organize your flow, or scatter it?
The questionDoes your team have too much work, or too much work started?
The questionWhere is your attention pointing, and what stays in the dark because of it?
Who it is forWritten for the person who has to explain the numbers.Read
Owners and general managers who grew and found that growth stopped converting into profit.
Operations and plant leaders whose lead times keep stretching while everyone is busy.
Engineering and project leaders running too many projects at once and finishing too few.
Anyone told to do more with less who suspects that more is not the answer.
No prior knowledge required. No methodology to adopt. It is a way of reasoning, and it works before any method.
For teamsThe book starts the conversation. Your team finishes it.Read
The book installs the reasoning. What comes next, finding your constraint, synchronizing the system around it, protecting it, is work that happens in a room with your leadership team.
Plan4flow runs a two-day leadership workshop, a support day on your floor, and thirty days of follow-up coaching.
How this beganEscaping the stampede.Read
I must have been seven. We lived in Poços de Caldas, in southeastern Brazil, on a corner facing a large grassy square. Cattle drives still moved through the streets back then, and to a curious boy it was a spectacle.
One day a herd began to scatter. The handlers ran, shouted, waved their sticks, and instead of organizing the movement they frightened the cattle more. In seconds the quiet march became a stampede. Our front gate was open. So was the back one. Without realizing it I had run into the path the animals were using to escape, and when I looked back there was a bull coming at me.
At the end of the yard stood a low wall, and at its base a slight rise in the ground. I planted my foot on it and threw myself over. Seconds later the bull passed exactly where I had been standing.
The gate is the same in both scenes. Above, alignment without pressure: the flow crosses. Below, pressure without alignment: more effort, less crossing.
For years that was just a childhood story. It took me much longer to see that the afternoon carried two lessons.
The square was the first. The cattle only crossed well when they passed aligned, a few at a time. Nobody there wanted chaos. Everyone wanted the herd to arrive faster. But pressure without direction does not organize a flow. It disorganizes it. And the day’s profit depended on how many cattle crossed the square whole, not on how many had left the ranch.
The wall was the second. I did not escape by being faster, or stronger. I escaped because I found a foothold.
I have met those two lessons many times since, in factories, in projects, in whole companies. Results are born of flow, of the orders that cross the system and come out finished on the other side. The constraint is only the place where that flow tightens. And the foothold is simply the right place to touch it.
PraiseWhat readers of the manuscript are saying.Read
“The Flow Equation is an easy read that challenges how organizations are managed. It highlights the truly problematical area of management: Operations. Several basic flaws have entered that area, in practice as well as in the academy. Gustavo Valente does it the TOC way: highlighting what is simple and yet very effective. He uses many excellent examples that reveal both the current flaws, and the way to fix them. I highly recommend the book to every manager, most definitely managers of Operations, and also to students at management faculties.”
Eli Schragenheim, international TOC expert, author and teacher“This is a wonderful guide for anyone seeking ways to improve organizational performance, packed with memorable stories that reinforce key points, brief explanations that help convey core concepts, and real-world examples showcasing effective application of the Theory of Constraints. I wish this book had existed when I first started my TOC journey!”
Mike Hannan, project portfolio executive and co-author of the PMBOK Guide, Eighth Edition“I especially value the chapter on the economics of flow: too few people know how to calculate the business case for improvement, and this book shows, number by number, just how enormous the effect can be: 25% more flow, 3.5 times the profit and often more!”
Wolfram Müller, founder of DolphinUniverse, author and consultant who has helped hundreds of companies apply these ideas“Most leaders can’t see where their organization is actually leaking value. Valente hands you the lens. His arithmetic of flow is simple enough to explain in a hallway and powerful enough to reorganize a company. This is the rare business book that changes how you think, not just what you do.”
Rick Drumm, Founder, Peak Growth Solutions; Author of Your Hidden P&L; former President, D’Addario & Co. and Vic Firth Inc.“Gustavo Valente and I worked together within three different companies, from a turnaround to a start-up to a company preparing for an IPO. Each assignment was different. But with Gustavo’s approach, each solution followed the same Flow Equation, resulting in lasting business success. This is a valuable read for executives, entrepreneurs, and emerging leaders who want to build stronger organizations, make better decisions, and deliver meaningful results.”
Ken Kozicki, C-Suite Operator“Most books on operations tell you what to install. This one does something harder and more useful: it retrains how you reason before any method is chosen. Valente writes from three decades inside real constraints, and it shows in the discipline of the metaphors, each carrying a single idea and leaving it lodged. Readers who have never opened Goldratt will finish this book able to see flow. Readers who have will find familiar ideas returned in a language their teams can actually use.”
Professor Youssef Youssef, PhD, President of the Chartered Institute of Marketing Management of Ontario“Our brains evolved to conserve energy, a survival advantage that now often limits our ability to challenge existing beliefs. Gustavo removes that resistance. With simple, compelling, relatable examples, he makes complex ideas intuitive and accessible, and page after page he gently reshapes how we see flow, constraints, and the systems around us, at work and in life.”
Sérgio Frias, Founder and CEO of CX Hub Consulting“Resources are limited; results are not. Here, Gustavo explains how to make that happen.”
Humberto R. Baptista, from the ForewordThe book is out.
The Kindle edition is available now.
More doesn’t make more.
Flow makes more.