Discussing Theory of Constraints in Service Based Organizations

In a Linked-in thread on TOC in Services, Richard said:

"…how would one apply ToC to an organization where it is project and service-based, but almost all of the services on any given "project" are handled by a single resource (a consultant)?

This would be similar to CC, but then there is the need to manage across multiple simultaneous projects where the only common resource on a group of projects is one (or a very small number) of consultants."

My reply:

The single resource (consultant) will have to apply increasing leverage of his or her own time.

Through owning 'essence work' (face time with clients?) and delegating/outsourcing the 'tail or responsibilities' (to a PA, junior partners, etc).

It might be that only 20% of their time is spent on the actual value adding insight and expertise that the client really wants or needs. Their focus will be on increasing the percentage allocation of their time spent on performing the value adding function that is unique to their expertise. I.e. How can they get from 20% to 40%?

By leveraging this single/finite resources time through eliminating lower value time consuming tasks, narrowing their focus, concentrating their value output – the breadth and depth of his reach expands through the support structure that supports him.

The picture of a multi-armed hindu god comes to mind, or Harold Geneen of ITT who successfully managed 50 companies that I read spent just 30 minutes per week on each company by reviewing a single page Tracking Report (See article on Geneen)

Leverage is not a new idea.

Maximum combined effectiveness and efficiency through personal productivity, group collaboration, and systems will always be fundamental to the knowledge worker.

And then 'consolidating, systematising, and eventually, automating or replicating' the single-resources talents.

My 2 cents.

Gavriel Shaw
www.gavrielshaw.com

• TOC Marketing The best kept secret breakthrough in marketing and business strategy is... (drum roll) TOC Marketing. Or in full: Theory of...
• Introducing TOC-Marketing to clients (adapted from this thread on Linked-in) Defining the problem: Undesirable Effects Here's a few UDEs: * Despite the logic of TOC,...
• Business Process Reengineering And Constraints Management Today's professional must understand project management, marketing innovation, and how they fit in with business strategy. One of my favorite...
• Business Marketing Performance Objectives and Indicators (download a pdf version) This diagram needs an orientation... First, the diagram shows different types of coloured box that have...
• Modern Business Marketing Through Performance Based Traditional Direct Response Through the budget squeezing economic downturn, and new global trends, companies must return to ROI metrics and an attitude of...

• Getting Indexed, A Little Patience? Newbie's and Expert Internet Marketers all have one thing in common: Trying to get their websites indexed through the top...
• Voip Hardware And Voip Software - Do I Really Need Both? The popularity of Voice over Internet Protocol (VoIP) is increasing in popularity. Those who use their computers for virtually everything...
• Life Insurance Strategies for Baby Boomers Many baby boomers have been paying for one or more life insurance policies for most of their adult lives.  As...
• Summary Of The Waxman-Markey Climate Bill: American Clean Energy and Security Act. Some of the key points of the American Clean Energy & Security Act from Grist, since they know better than...
• My Life as a Volunteer Tax Preparer - Ch. 2.6 Wow - tax season is flying by. My weekly visits to the volunteer tax office seem to fall closer together....