Understanding the value of your efforts and where you and your team should be investing their times at any given moment is essential to reaching optimal acceleration in your business. So how do you make this decision quickly?
Why you should read this blog:
- To develop a decision-making framework about where time and effort should be focussed at any one time in your business.
- Accelerate growth through absolute clarity of actions
In 1984 a management philosophy referred to as the Theory of Constraints (TOC) was presented to the world by a renowned management consultant Eliyahu Goldratt in his book The Goal.
The interesting thing about the TOC and other great business theories are that they seem to have an unexplained lifespan, very similar to fashion, they seem to predictably fall out of vogue for vanity reasons rather than the effectiveness or practical application.
However, the TOC, like a great pair of jeans is an idea all business owners need to have available at the right time or occasion. It is both effective, logical and a should be part of your decision making tools.
The basic idea of TOC is this, businesses are limited by their biggest current constraint. For example, if you have the capacity to serve more customers but don't have enough customers, you have a sales/customer acquisition constraint. In order to remove this constraint or fix the factor that is limiting progression, this must be rectified first as everything else becomes irrelevant until it is no longer the biggest constraint.
For business owners, acceleration in any part of your business is simply a matter of identifying the biggest current constraint and follow this process:
1. Articulate the goal you are trying to achieve and measurement
2. Identify the system's constraint(s).
3. Decide how to exploit/remove/rectify the system's constraint(s).
4. Make this task(s) the highest priority
5. Elevate the system's constraint(s). (ie: cause it to not be the biggest
6. This is called “breaking the constraint” and is the goal of the process
7. When the constraint has been broken (ie: no longer the biggest limiting factor), go back to step 1.
When a business is focussed consistently on its immediate biggest constraints, the return on effort to results is significantly increased.
Using the TOC as both a practical tool or quick decision-making framework is a great way to focus effort in a business and provide clarity for teams. This leads to effort maximisation and progress, overall, the fastest way to the greatest impact.
Without addressing your biggest constraint or business problem in the right priority order, you will always struggle to create significant and effective results.
Take three different people out for a coffee in your business
Ask them what they believe the biggest constraint is currently in the business or their department
Ask them the biggest constraint they see in the business that inhibits further growth
Write down their answers and pick the biggest constraint
Comment below on how you went.