Consider an order that must be recorded accurately, matched to available stock, and delivered on time. A slow step creates a queue; a missing capability, such as dependable stock data, can undermine the whole chain. Either way, polishing the other steps may not improve the customer’s result.
The first job is to find the constraint. That can be uncomfortable because the weak link may belong to a respected team, or improving it may not produce an immediate win. But moving resources to the most limiting step can create more value than spreading small upgrades across every department.
Map the path from need to outcome. Mark where work waits, returns for correction, or requires a workaround. Check whether several capabilities must improve together. A flat first result may reveal another bottleneck rather than disprove the diagnosis. Then ask whether the changes improve the customer’s actual outcome.
Source: Good Strategy/Bad Strategy