Constraint-finance

In the first 2 chapters the authors do a good job of explaining why variable costing is better than full absorption costing. Thereafter the book fails to add much more than that. I learned in university that variable costing is better than full absorption costing, so this is nothing new - what would be more useful would be ways to use both systems simultaneously, seeing as full absorption costing will be with us for SEC and IRS reporting purposes.
Great start, but left with a feeling that I hadn't really learned much in the end.

This book was the best summary of the Thinking Process I have yet read, but it's title suggests an accounting focus. The accounting focus lasted just for the first section. The real value of this book was the case studies where they discussed some of the benefits and pitfalls experienced by some companies that implemented TOC ideals.

I am a second-year MBA at the University of California who also holds a Ph.D. in engineering (systems theory). Prior to attending business school, I held roles as information solution architect and project manager at a Fortune 20 firm.

I thought "Strategic Navigation" was fabulous -- easy to read, not verbose, and extremely useful and informative. By fusing business strategy and the practical methods of Theory of Constraints (ToC), the author has provided us an easy, consistent way to form, plan, and deploy business strategy. Wow !

In he first 10 pages Dettmer (the author) summarizes in succinct detail ten (10) schools of thought on strategy formation which he groups into two categories -- deliberate (traditional) and emergent (contemporary). He carefully outlines the pros and cons of each of the ten schools.

In the following 50 pages the author covers four action-oriented approaches to strategy: 1) Hoshin, 2) U.S. Military, 3) Boyd's Maneuver Warfare, and finally 4) Constraint Management Model (CMM) (from the ToC). For business strategy applications the author builds a case that the CMM is a superior hybrid that borrows the best of nos. 1 and 2. He also asserts that the intrinsic flexibility and speed provided by no. 3 are also provided to a degree by the CMM framework.

In the final two-thirds of the book, the author presents how to use the CMM framework to develop business strategy. In about 140 pages he gives a robust method for analysis and design of strategy -- a systems approach to business strategy.

For me this framework is compelling. In the world of information solutions (IS) I have used frameworks developed by IS experts that take (as inputs) seemingly chaotic collections of business and technical factors and then output (within a reasonable amount of time) a viable, robust information solution design.

The CMM approach handles strategy development in a similar way. However, by comparison CMM may be a bit simpler, more logic-driven, and more comprehensive, which all are necessary to enable managers to exercise due diligence in a timely way around the strategy life cycle of a firm.

I highly recommend "Strategic Navigation". To complement the book I would advise the reader to buy a companion book that focuses on concrete, known, and useful strategic business "tricks and methods" in areas such as incentives, pricing, bargaining, marketing, etc. Thus, Dettmer's book would address the design process, and the second book would supply the content -- a winning combination.