In the Theory of Constraints, the foundation lies in five guiding steps.
First, you need to identify the system's constraint. Otherwise, you'll be searching for keys not where you lost them, but where it's bright.
The second step is to exploit the constraint. If your business lacks customers, it'd be a crime to waste leads. They'd better have the status of corporate relics.
Step number three: align the entire system's work with the constraint. In a crisis, a CEO makes decisions swiftly, meaning individually. But his resources are finite. All managers have to adjust to him, always be available, and certainly not slow down.
Attention! Three steps have been taken, and much work has been done. But we haven't heard the most common requests: increasing the marketing budget, hiring a personal assistant, buying CRM, and so on.
Usually, companies do the opposite. Managers rush to throw money or people at what seems to be a problem to them. But reality tolerates such nonsense only for a while.
One day all resources are exhausted. Deposits crack open. Banks deny loans. Investors freeze. Shareholders' pockets empty.
The corporate body will face a binary choice: accept the bitter medicine of truth or perish from the sweet poison of illusions.
Before, we didn't want to look for where (and if) the bottleneck was in the bottle. But at the point of desperation, everything is obvious. The main constraint is us.
Sincerely yours,
-Alexander
About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.
How can I help you?
If you've long been trying to understand what is limiting you and/or your business and how to finally give important changes a push, then The Catalyst Session is designed specifically for you. Book it here.