Constraints and Bottlenecks
Every portfolio has a constraint that sets its pace. How to find it, manage it, and rank work by what it returns on the scarcest resource.
Topics: All Insights · Constraints and Bottlenecks · Resource Management · The Cost of Delay · Portfolio Decisions · Value and Business Cases · Planning and Estimating
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Pick Your Capacity Constraint Before It Picks You
Read the piece: Pick Your Capacity Constraint Before It Picks YouEvery portfolio has a capacity constraint. Choosing where it sits decides whether relief costs a quarter or a hiring cycle.
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Your Resource Constraint Is Probably a Policy
Read the piece: Your Resource Constraint Is Probably a PolicyA resource constraint made of rules can be relieved for the price of a decision, so price every route in dollars per constraint hour released.
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Bottleneck Analysis: The Answer Is a Slope, Not a Name
Read the piece: Bottleneck Analysis: The Answer Is a Slope, Not a NameA bottleneck analysis that returns a name cannot size the overload. The slope of the queue in front of a resource can, in hours per week.
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The Pooling Dividend: Why Your Six-Person Team Is Really Six Teams of One
Read the piece: The Pooling Dividend: Why Your Six-Person Team Is Really Six Teams of OneA team of six is often six queues of one. Coverage depth, how many people could take the work, is the queueing term nobody measures.
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Value per Constrained Resource Hour
Read the piece: Value per Constrained Resource HourProject prioritization by score or size favors big projects. Value per constrained resource hour ranks work by what it returns on your scarcest resource.
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The Coordination Ceiling
Read the piece: The Coordination CeilingProject coordination helps a slipping portfolio until it stops helping. Past the Coordination Ceiling, each extra meeting costs more capacity than it saves.
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The Asymmetric Ledger: Why Your Portfolio Can Book Every Dollar It Saves and None of the Dollars It Never Earned
Read the piece: The Asymmetric Ledger: Why Your Portfolio Can Book Every Dollar It Saves and None of the Dollars It Never EarnedOpportunity cost is real, but portfolios book the money they save and never the value they failed to earn. Here is why, and what closes the gap.
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The Sub-Threshold Portfolio: Why the Work Too Small to Govern Consumes Your Scarcest Capacity
Read the piece: The Sub-Threshold Portfolio: Why the Work Too Small to Govern Consumes Your Scarcest CapacityProject governance keys on size in dollars. That is why work below the threshold skips scrutiny and still consumes your most constrained specialists.
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The Optimism Gradient: Why the Projects Nobody Can Check Keep Beating the Ones You Can Measure
Read the piece: The Optimism Gradient: Why the Projects Nobody Can Check Keep Beating the Ones You Can MeasureOptimism bias is not spread evenly across a portfolio. It grows where a benefit claim cannot be checked, and that is what wins your scarcest capacity.
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The Ceiling Behind the Ceiling: Why Elevating Your Constraint Returns a Fraction of What You Paid For
Read the piece: The Ceiling Behind the Ceiling: Why Elevating Your Constraint Returns a Fraction of What You Paid ForProject constraints usually mean scope, time and cost. Delivery speed is set by one shared resource, and elevating it just moves you to the next ceiling.
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The Hiring Dip: Why Adding People to Your Constraint Makes You Slower First
Read the piece: The Hiring Dip: Why Adding People to Your Constraint Makes You Slower FirstBrooks's law says adding people to a late project makes it later. The hiring dip explains why, prices it, and shows when hiring into the constraint pays.
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The Absorption Constraint: Why Your Finished Projects Are Not Earning Yet
Read the piece: The Absorption Constraint: Why Your Finished Projects Are Not Earning YetBenefits realization usually tracks whether value showed up. The real limit is whether the organization had the capacity to absorb the change at all.
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Phantom Capacity: Why Your Plans Are Built on Hours That Do Not Exist
Read the piece: Phantom Capacity: Why Your Plans Are Built on Hours That Do Not ExistCapacity planning multiplies headcount by a calendar. Those hours vanish into leave, support and switching long before any project sees them.
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Theory of Constraints and the Non-Constraint Trap: Why Making Other Teams Faster Does Nothing
Read the piece: Theory of Constraints and the Non-Constraint Trap: Why Making Other Teams Faster Does NothingThe theory of constraints says one resource sets your pace. Flow Economics prices every project against it with value per constrained resource hour.
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How to Find the One Resource That Sets Your Delivery Speed
Read the piece: How to Find the One Resource That Sets Your Delivery SpeedBottleneck management usually means managing the busiest team. The constraint is different, and the clone test tells you which one you actually have.
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Resource Allocation: Stop Ranking Projects by How Big They Are
Read the piece: Resource Allocation: Stop Ranking Projects by How Big They AreResource allocation by project size puts the biggest promise first. Ranking by return per constrained hour puts the most valuable first.
