Companies develop in different ways

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For example, in one company the bottleneck was the director of the organization himself. He calculated orders that did not fit into the standard price list, and he did this constantly, but for some reason the director did not want to review the price list. Potential clients had to wait two or three days just to find out the cost of the order. Demand was high, and the productivity of this section of the business process was critically low, and this greatly worsened the situation with all operational activities in the company.


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Companies develop in different ways :

as the market segment kuwait email list expands, the productivity of the core business increases;

open related areas of activity;

expand the coverage area;

take over market positions from competing firms;

are engaged in expansion (absorbing other enterprises, merging with them).

Absolutely all of these options are associated with additional costs.

How and why bottlenecks arise in sales and any other processes is perfectly described in the book by Israeli physicist Eliyahu Goldratt, “The Goal: A Process of Continuous Improvement.” This fiction bestseller sets out his Theory of Constraints (TCO). It was highly praised, for example, by Amazon founder Jeff Bezos. So highly that during one of his meetings he recommended that all top managers in his company read Goldratt’s book.

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The theory of constraints is based on the postulate of the potential infinity of such a value as enterprise productivity. But it is limited by external and internal factors: the market, technology, the time factor, culture and management style, stereotypes in the manager's head. Where efficiency falls due to these systemic limitations, a bottleneck occurs. As a means of combating them, the author suggests management methods (which are essentially very similar to quality management methods). Constantly identifying and expanding bottlenecks in sales, production and other business processes is the task of managers.

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