Eliminating Business Bottlenecks

November 16th, 2011

Identify The Limiting Factor

As a business leader, whether you are aware of it or not, there are almost always limiting factors or critical constraints that determine how fast the organisation achieves it objectives. Not only can a constraint slow you right down, if it is continuously ignored it can and often does bring the business to its knees.

 

Follow The Formula

Constraint analysis is founded on a few simple steps.

First and foremost decide on your specific, measurable, time-bounded goals.

Second ask yourself, “Why have I not achieved this goal already?”.  What is it that is holding you back?  What limiting step are you stuck on?

 

Internal Versus External Constraints

Fully 80% of the constraints or limiting steps lie within the business or enterprise.  These internal constraints may be contained in the work process itself.  Sometimes they can be found in a lack of skills or capabilities.  For example, revenue is determined by the weakest one of the following steps: lead generation, building trust, gap analysis, presenting solutions, overcoming objectives, closing the sale, referrals and re-sales.

 

The Human Constraint

Leadership is key.  The competent leader is always looking for possible points of weakness within the team.  Matching people with right skills to the job at hand has a large impact on the ability to execute and get things done.

 

Eagles Are Hard To Find

Always be on the lookout for competent people of high-character, capabilities, and energy.  These people are not easy to find.  Look for the small signals early on.  It is rare for employees and managers to move and take on higher responsibilities that propel the company forward if they cannot be true to small disciplines.

 

Review Regularly

We live in a Universe where entropy and chaos tends to expand if left unchecked.  Constraints are omnipresent.  Recognize them and unblock them early in the piece.  Enjoy the acceleration.