Wednesday, February 21, 2024
Business File

The theory of constraints – what’s holding your business back?

By John Corban

Do you feel there is a part of your business that is not operating the way you would like it to? It might be your time management that continually puts pressure on you and limits your business growth and efficiency, or it might be your project management system that creates inconsistent results on projects.

These barriers that hold us back, were explained by an Israeli business management expert nearly forty years ago. He called these barriers the Theory of Constraints and said every business has obstacles that are slowing its growth, efficiency and profit. Often there is one main constraint in a business, and when it is identified and eliminated, the business will take a major leap forward.

When I begin working with my clients, I find that many of them know the major constraints in their business but are seeking the right way to go about dealing with them.

If you want to check your major constraints, try this quick exercise.

Ask yourself: What would I like my business to look like if it had time to develop it?

And some further questions:

  • What projects would I like to design/build?
  • What would my marketing look like on social media or a website?
  • How many team members/subbies would I have and what roles would they fulfil?
  • What would my sales/profits be?
  • What is my quoting/project management system like?
  • How would I best serve my business, what would be my role?

Try answering the above questions using bullet points, then think of your business in its current state and highlight the areas that need attention by making a comparison from now to the future vision. Then prioritise what you think is the first major area that needs attention before anything else.

Often, we are on a treadmill running our business, dealing with all the urgent tasks and responsibilities, and we don’t give time to working on our business to identify and eliminate major obstacles that are limiting business growth and efficiency.

Identifying a major constraint sounds simple enough, however eliminating it will take some time and effort. We all know that everything worthwhile takes time and effort but addressing this constraint might be quicker than you think.

Interestingly, making the decision to address and work on a constraint is the hardest part of this process but once you do, the frustration you have been feeling starts to ease because you have a better understanding of the cause of the congestion. Then, as you change a part or parts of a process and test the change, you start to see improvement.

I have found that when I change a major constraint, my attitude is immediately uplifted and that influences all areas of my business.

So my message is, decide to address one constraint that you have been putting off that you know if you were to fix, would make a big difference to the way your business operates.

And if you get stuck and need some help, give me a call.

John Corban
Business Coach for Landscapers,

Horticulturists and Nursery owners
Mob: 0433 271 980
www.landscaperscoach.com.au

John Corban

Business Coach for Landscapers

Leave a Reply