How to Find this Unicorn called "Constraint!"

"The Map" with a maximum of five questions to find your constraint

How to Find This Unicorn Called "Constraint!"

June 1, 2025

More and more people ask me, "How do I find the constraint?" and they are very often simply searching in the wrong place! But without a map, navigating can be very cumbersome - here it is!

Wolfram Müller - remastered article from 2025-02-11 (c) CC-BY-SA

Introduction

In business, efficiency is often limited by a single factor - what we call the constraint. According to the Theory of Constraints (TOC), developed by Dr. Eliyahu Goldratt, identifying this constraint and optimizing around it are the keys to unlocking an organization’s full potential.

Here is our step-by-step approach to identifying this constraint, utilizing practical diagnostic questions informed by real-world applications of TOC in over 42 cases and 20 years of experience.

If you find a constraint, then the 👉 symbol gives you a hint about what the solution could look like.

NEW NEW NEW: This small app guides you through the questions and gives you an even more detailed report and hints: The 99/1 Constraint Analytics Center aka One-Lever.com

Step 1: Ask the Questions to Find Where to Look

The process starts with a simple yet powerful question - and it's worth thinking about for a long time:

Can you fulfill all requests from the market? (0)

• Yes, and I take all requests: Your constraint is likely external (market demand, competition, regulations, etc.).
• No, meaning leads are lost to competitors: You have an internal constraint - a bottleneck within your business operations.
• Yes, but I maintain protective capacity: You are in an optimal state. Your focus should be on maximizing throughput and leveraging protective capacity to drive growth.

Now you can just dig deeper into your situation. If you have an external constraint, proceed to the next area, 1, "market/external constraint"; otherwise, go to area 2, "internal constraint."

Area 1: Market/External Constraint - Analyze Your Market Position

If your constraint is external, determine the following:

Are you the market leader? (1)

• Yes (market share >40%) 👉 Your growth may be limited by market size. Consider expanding to new markets.
• No (market share <25%) 👉 Your constraint is likely in marketing and lead generation. Focus on automating and intensifying marketing efforts to increase demand.

But be honest: even if you think your constraint is external, it is very likely that you could sell more if you built a competitive edge.

Furthermore, if you want to innovate or open new markets, then you need more projects. So it's also likely that your constraint is now internal again because, to solve the external constraint, you need much more power!

If your constraint is internal, continue with the next area and first look more deeply into sales!

Area 2: Internal Constraints

Don't be too quick to search for constraints in production or projects - sales first!

Is your sales team losing orders due to unreliable or long lead times, poor quality, or simply low throughput? (2)

• No: The constraint is likely within the sales process itself - evaluate whether your best salespeople spend enough time with customers; see the next area (2.1).
• Yes: Oh, oh, you have a constraint in production, project management, or delivery - go directly to area (2.2).

Step 2.1: Evaluate Sales Process Efficiency

Now we are in sales, and sometimes old habits generate a constraint where it should never belong ...

Are your best salespeople spending more than 80% of their time with customers? (2.1)

• Yes: The constraint lies in the availability of experienced sales personnel 👉 Consider automating administrative tasks and hiring support staff.
• No: The issue may be due to policy constraints (e.g., excessive admin work, inefficient travel schedules) 👉 Look into optimizing sales structures (referencing Justin Roff-Marsh’s The Machine).

Step 2.2: Which World Do You Live In - Production or Project Management - What's Your Business Type?

What type of business are you operating? (2.2)

• If your business is focused on delivering defined products, then you have to look more deeply into area 2.2.1, Make-to-Stock or Make-to-Order.
• If your business is more focused on projects - either earning money directly by delivering projects (e.g., engineering services or special machinery) or needing the projects to build products - then you have to look more deeply into area 2.2.2, Engineering-to-Order.

Attention: the differentiation is not perfectly clear, and companies can have both - so think about where you currently have the most trouble.

2.2.1 Production / Manufacturing (Make-to-Stock or Make-to-Order)

So now the question to ask is clear ...

What "machine" (workplace/station) or team has a load of more than 85%? (2.2.1)

Then the constraint can be found in one of these areas:

• Identify a machine or team that is consistently loaded over 85% 👉 This is a real constraint - consider a Drum-Buffer-Rope (DBR) or simplified DBR as workflow control.
• It can also be found in the supply chain! 👉 Consider checking out Demand Driven Material and Resource Planning (DDMRP).
• Is engineering or industrialization overloaded? 👉 Consider heading for "Configure to Order (CtO)" or platform/module concepts. Check also 2.2.2 because now it is likely that the constraint has moved to projects.

2.2.2 Project-Based Business (Engineering-to-Order, Agile Projects)

In projects, it's a little different, and there is one more small question to ask. So, two questions at once:

Is automated continuous integration and delivery in place? (2.2.2)

How high is the workload of your Business Analysts or System Engineers? (2.2.2.1)

Then you get three cases:

• You do not have continuous integration or delivery in place 👉 Then you most probably have integration as a critical phase and constraint - we call it a "virtual constraint." Critical Chain Project Management is then the state-of-the-art approach to getting more out of this constraint by focusing on optimizing integration!
• You have continuous integration, and the architecture/business analysis team is not overloaded. 👉 Then you have a very rare case in which you have a real constraint in your project environment. But even then, Critical Chain Project Management is the state-of-the-art approach to getting more out of this constraint by focusing on optimizing integration! You see the pattern!
• You do have continuous integration, but even then, the architecture/business analysis team is overloaded. 👉 Then find a good architect and protect your business analysts, all with the aim of implementing a stable platform with a good API that will also enable you to have agile, customer-centric teams.

So if you have followed all the questions, you should have found your constraint 👉 and have a direction in which to look!

Then you will probably need more input about the Theory of Constraints and its templates for managing different kinds of constraints. So here are three sources you may need now to dig deeper and deeper:

• The steps here require more knowledge about TOC - so just check this out: Theory of Constraints (TOC) in a Nutshell (remastered)
• Overview of all the TOC templates - we call them TOC Lego bricks - to find exactly what suits you best: Build Your Own High-Performance Framework - Part 1A: The Theory of Constraints Lego Bricks (remastered)
• If you need support, join our community to learn more and meet experts (guides and supporters): Register for our DolphinUniverse for free

But not so fast! There are traps to avoid ...

Step 2: Confirm the Constraint

Once you have identified a potential constraint, conduct three critical checks to ensure it is the real bottleneck:

1. Policy Constraint: Could the limitation be caused by outdated policies, cost-cutting measures, or efficiency paradigms? If so 👉 Fix the policy first.
2. Preparation Quality: Is the constraint active due to missing prerequisites or poor upstream processes? 👉 Ensure full-kit readiness.
3. Work-in-Progress (WIP) Overload: Is excessive WIP making the constraint appear overloaded? 👉 Consider pausing orders/projects to restore flow.

If any of these apply, resolve them before addressing the constraint itself.

Step 3: Avoid the Common Pitfall

A common mistake in addressing constraints is to simply invest money to remove the bottleneck. However, this often backfires by increasing operating expenses without improving system efficiency.

Instead, apply TOC principles:

• Optimize the process before expanding capacity.
• Subordinate all decisions to the constraint.
• Elevate the constraint only when absolutely necessary.

Of the over 40 companies we supported, only two required expansion of the constraint - most found sufficient hidden capacity within their existing resources!

Conclusion: What’s Next?

Once you have identified the constraint, the next step is to unlock hidden capacity and calculate the business impact of improving it.

For deeper insights:

• Download free resources like The Book of Dolphins - Part 1 - Critical Chain Project Management.
• Join expert discussions with professionals like Wolfram Müller, Steve Tendon, Mike Hannan, Frank Erbacher, Kerstin Zulechner, and Didier Varlot, who specialize in TOC and constraint management.
• Implement TOC tools such as DBR, CCPM, and variations together with us for sustainable improvements.

Finding and managing your constraint is the fastest path to significant profit increases and operational efficiency. Apply these steps and watch your business transform!

But first - join our community to learn more: Register for free - one small step can change everything.

References:

• The Goal - Eliyahu M. Goldratt
• Critical Chain Project Management - Eliyahu M. Goldratt
• The Machine - Justin Roff-Marsh
• The DolphinUniverse - Wolfram Müller - all you need for FLOW