A bottleneck is a restriction in a system or process that obstructs the organization from moving more swiftly. In other words as a business leader, your organization can’t go any faster than its slowest-moving part.
Understandably, there are always a few problem areas in your business that might consume a considerable amount of your time and cause you to fall behind in other areas. This is why it’s so important to get rid of these snags before they have a ripple effect within your company.
Bottlenecks are a giant obstacle to your growing business so, if you want to continue developing and growing your workload, then these obstacles must be removed. Even if your business is, for the most part, running like a well-oiled machine, just one little hitch can cause disorder and mayhem on your progress.
Every business has bottlenecks, nonetheless finding and overcoming them may be more complex than you think.
Your whole business is a system or groups of systems, so no matter what type of business it is, you need to find these bottleneck(s) to correctly set priorities for growth.
Once those obstacles are taken care of, something else will become the slowest process and you’ll need to begin again.
Conquering these constraints is a never-ending battle.
So, how do you find the bottleneck in your in your organization? It can be a lot harder than you think.
Start by asking yourself…
What prevented you from generating more sales today? The answer is most likely several issues, each one should be explored.
- Was your stock a problem? Then maybe inventory was your bottleneck.
- Did you miss several sales? Perhaps your business hours were the bottleneck.
- Were there missed orders that didn’t get entered? Or shipped orders that did not get invoiced? Maybe document work flow is your bottleneck.
- Did a customer drive right by and there was nowhere to park? Think about location being your bottleneck.
Many business leaders are so focused on where the next sale or new customer will come from that they tend to overlook the internal bottlenecks that are hindering their ability to make the most of the customer demand they already have.
Try sitting down with your team and ask for their understanding on why the company didn’t produce more revenue today. What can be done differently tomorrow?
Without open and honest discussion about even minor bottlenecks throughout the firm, you may be allocating resources in the wrong places.
Make finding and unblocking bottlenecks in your business a daily activity and you just might create opportunities and prospects that otherwise wouldn’t have be fully realized until you freed up those slowest moving parts.
Do you know where your company’s bottlenecks are?
[themecolor]Dave Baney is the founder and CEO of 55 Questions, LLC. We work with successful top executives with a driving ambition to crush their competition. We help CEOs and Entrepreneurs improve alignment, communication and accountability throughout their organization.[/themecolor] http://www.55questions.com
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