James Schramko here. I want to share a lesson I learned from Eli Goldratt, who’s no longer with us, but he is a genius business strategy adviser. He wrote books called The Choice and The Goal.
So, in the books, he talks about the Theory of Constraints, and simply put, this is finding out where the bottleneck is in your business and directing all your possible resource at it, and just blow it up. Get rid of the bottleneck. In fact, the more complex a system is, the simpler it is to impact the entire system with some changes to the bottleneck.
I’ll give you an example – if you had a Ferrari, a very complicated machine of batteries, and electricals, and plastic, and glass, and metal, and oil, and petrol, and the whole bit, but if you put some skinny tires on it that was speed rated to 20 kilometers an hour, if you would have just changed that and put some proper Pirelli P ZEROs on it that are capable of doing maximum speed, you could take that car from 20 kilometers an hour to 220 kilometers an hour, maybe 320 kilometers an hour. They’re pretty quick these days. So, you could significantly change it by just applying that one change – the tires.
So, think about, where is the bottleneck in your business? What is the easiest thing for you to change that will get you the most significant result? Attack your constraints with all available resources. Thank you Eli Goldratt for the tip, and I hope you can apply this in your business today.
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