[vc_row][vc_column width=”1/1″][vc_column_text]In 1984, Eliyahu Goldratt introduced his Theory of Constraints in a business novel co-written by Jeff Cox entitled “The Goal.”
The theory itself is that constraints (or system bottlenecks) in and of themselves are not inherently bad – it is how you deal with them that counts. It is about taking a step back and approaching an old problem in a new way. And it is about adjusting systems to embrace new technology as it is introduced instead of trying to fit the new technology into the old mold.
Challenge Assumptions
Using the backdrop of the story of a fictitious plant manager (Alex Rogo) and his quest to turn around a struggling operation, Goldratt presents a strong case for the fact that business decisions are not always made with the end goal of making money in mind – that they are, in fact, often made just to make things look good “on paper,” or to conform to past practices.
The point is made in a rather extreme way, as Rogo who has just executed what could be termed a miraculous turnaround of his plant, eliminated months of back-orders, reduced inventory, increased throughput and significantly increased the bottom line, is told that his successes must be a fluke and berated for an increase in “cost of products measurements.”
Fortunately for Rogo, upper management starts to put faith in his “unorthodox” methods and begin to realize that they have, in fact, been “dealing with fundamental assumptions that are wrong.
Adapt and Embrace Opportunity
Though the story is more than three decades old and many newer Business Process Improvement models have since been introduced, the basic principles presented in The Goal remain true to this day (particularly in this age of constant innovation) and are applicable far beyond the manufacturing plant floor.
When a new way of doing things comes along that eliminates a prior constraint it is necessary to pay close attention, adapt and create new rules in order to survive and prosper.
- Where would Blockbuster be had they adapted to a “virtual” storefront like NetFlix?
- Where would Borders be had they pioneered a “virtual” storefront like Amazon?
Look at processes differently – no matter what your role.
Although “The Goal” is set in a factory and the Theory of Constraints is used to depict how to address workflow and throughput in a manufacturing environment, the same principles can be applied across all disciplines.
Think sales for example. While common challenges faced by sales managers are not all that different than they were a decade ago (not enough leads, lost market share, flat sales, high rep turnover, sales cycle is too long, etc.) The ways of addressing those challenges are.
- SEO, email & inbound marketing are being used to generate high quality, qualified leads (no more phone book!)
- Webinars, videoconferencing, and online meeting tools are reducing the need for face to face sales and demonstrations.
- CEO’s are beginning to recognize the intrinsic (and economic) value of a highly flexible inside sales force.
- In the past, the preconception was “I could never trust an outsider to run any aspect of my business,” now, smart leaders are realizing that outsourcing key functions like sales and marketing can be a wise business decision.
If sales and marketing is your bottleneck, or if you need speed to market and are interested in partnering with a first class virtual sales organization, contact NuGrowth Solutions. We’ll bring the people, the processes and the expertise to take your organization to new heights in customer acquisition. If you are interested in leveraging our team to increase revenue for your business, please give us a call at (800) 966-3051.[/vc_column_text][/vc_column][/vc_row]
