Lean Business Tips #59: The 1% Improvement on 1%

Every organization has limitation for its growth. Though it takes enormous efforts to improve its profits or sales, the company unable to grow massively after attaining its peak. After this point the improvements are incremental and slower than before. This point is called ‘limitation for growth’.

So, is it possible to improve the performance drastically after a pinnacle achievement? The answer is ‘YES’. The massive improvement is possible only when the limitation is removed. If there are numerous limitations, then the management’s responsibility is to identify the leverage point to improve the performance with little effort.

Dr. Goldratt explains in his theory of constraints that 1% of causes responsible for 99% effects in any organization. But to the opposite, maximum improvements happening on the 99% parts only. It means that the outcome can be very minimal.

James clear in his book atomic habits, comes out of a habit building approach that is 1% improvement every day. This is to avoid aiming too high and falling in too short. This approach can also be implemented in business.

I have combined these approaches here. So, if the 1% improvements happening every defined period on 1% of leverage point then the growth would be clearly visible. The results can be more than the expected. Not only in business, this rule can be implemented anywhere in life, to attain the maximum success.

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By Surender Gowthaman

Blogger, Theory of Constraints-Lean-Six Sigma Practitioner, Lead Auditor in QHS

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