He speaks about the P/PC balance where you need to balance your production and your production capacity to allow them to work together. He gives the analogy of the golden goose a fable as a visual picture of what this looks like.
A farmer found a golden egg laid by one of his geese; after his initial shock and evaluation, he sold it and thought that was the end of it. However, the next morning he found another egg of solid gold, laid by the same goose. Morning after morning, this bird laid one golden egg, and the farmer quickly became rich. However, he became impatient with only getting one egg a day. He cut the goose open in an attempt to get all the eggs at once. Only to find that the goose had no eggs and now wouldn’t produce anymore.
Product in p/pc would be the golden egg, and production capability would be the goose. You can’t focus your efforts on only the result alone without running into problems with your production capacity to continue to produce it. On the other hand, you can’t only focus on your production process; if not, you end up becoming the person who runs 3 hours a day bragging that they are adding 10 years to their life, not realizing they are spending the 10 years on running.
1) You need to balance product & production capability balance or P/PC
2) Focusing only on your final product you will ruin what it took to get that product
3) Focusing only on your production capability works in a loop, spending more time on the system that the value that it could produce