Balancing demand and supply can be an issue even with the smallest companies. Among the most dreaded situations is the bottleneck, where an organization’s entire operation is disrupted by a shortcoming in a single component, process, or department.
Business bottlenecks can have a devastating domino-like effect on your bottom line. However, they can also almost always be avoided with the right planning and foresight. Here are three of the most common issues and our recommended solutions.
The Conveyor Belt
Whether physical or procedural, every business uses a conveyor belt where teams or individuals insert their contribution to the unfinished product or service before the final version rolls out. Conveyor bottlenecks arise because not every stage of the process requires the same number of people nor the same amount of time.
To remove a conveyor belt bottleneck, identify the most time-consuming processes. Bringing them up to par with the other stages could involve one or more of the following:
- increasing the workforce at that stage
- retraining the workforce
- redesigning the process
- automating the process
A rethink of one component may affect the others so managing these changes is a fine balancing act. Accelerating all slower process to match the fastest one could involve large costs; you may want to consider whether the fastest processes could be slowed down for a better ROI instead.
Interdepartmental
This is most often (but certainly not exclusively) an issue in organizations that have recently grown. Different departments with varying work cultures and differing SOPs, each with their own priorities can create bottlenecks at points where they are forced to interact.
In growing companies, problems that previously would have been resolved by someone walking into the next room may now have to be handled by people who have never met and lack the same camaraderie. The situation may be exacerbated when employees fall ill or are on vacation and their colleagues refuse to sign off on a document fearing blowback if an issue arises later.
In order to avoid these delays, institute clear protocols for cross-departmental events. Establish an alternate chain of command so work does not come to a standstill because of the absence of a single person.
Technology
Yes, technology does help you accelerate your time to market… until it doesn’t. Our utter dependence on technology can become a bottleneck because computer systems fail, power outages occur, software is susceptible to attacks and, ultimately, because fixing errors can take an inordinate amount of time.
Analyze your processes for points at which you rely completely on technology. Anticipate the problems that may arise when one or more of them fail and formulate a strategy to keep your operations going if and when the “unthinkable” happens.
At DeSantis Trusted Advisors, we provide consulting, advisory, and coaching services to businesses and their stakeholders with the goal of creating pathways to success. Contact me today to discuss ways to make your business reach its peak productivity.
