Splendor and the Art of Bottleneck Management (Systems Thinking and Design, Part 3)

"Your call is important to us. All representatives are currently assisting other customers, please stay on the line."

It's a line everyone has heard before and we universally agree, hope never to hear again. What you are experiencing when you get to that message is a bottleneck, a point in a process that is overwhelmed by the demands placed on it. Bottlenecks exist in every System and they determine the efficiency of that system. Smart managers are constantly on the lookout for bottlenecks so they can be dealt with, improving the efficiency of the system and all parties impacted by it.

There is no mystery as to the origin of the term bottleneck because the metaphor is so appropriate. The narrowing at the neck of a glass bottle limits the rate of flow, just as the number of call center representatives limit the rate at which customer calls are handled. A system is only as efficient as the least efficient part of the process. An efficient system allows us to get more done in less time with fewer headaches, so knowing how to keep them running smoothly is a key skill for effective leaders.. Dealing with bottlenecks relies on two key components - Identifying the bottleneck and addressing the root cause.

Identifying the bottleneck

Over time, systems have a way of taking on a life of their own. When we don't keep a finger on the pulse, we become detached, observing the output of the system, but not truly understanding the processes that are involved. The best way to spot a bottleneck as it forms is to remain grounded in the system, actively monitoring the processes daily. It's all too easy to become complacent, however, so for the rest of us, identifying a bottleneck takes two forms: Pain points and scheduled maintenance.

• Pain points: All too often it isn't until there is a problem that we open up the hood and take a look around. When the check engine light comes on, we know it's time to go see a mechanic. When productivity goes down or delays and wait times go up, you are probably dealing with a bottleneck.

• Scheduled maintenance: As the old saying goes, an ounce of prevention is worth more than a pound of cure. Smart managers understand the importance of checking in on processes and systems before problems arise. The act of walking through a process is often enough to identify inefficiencies to be dealt with.

Regardless of whichever method was used to uncover the bottle neck, the next steps are the same.

Addressing the root cause

Identifying the bottleneck is only half the battle. An intervention needs to be implemented, but how do you know you are addressing the right issue? Let's go back to the long call center wait. Call wait times are high, leading to customer complaints, a pain point. A surface level investigation would lead you to identify the need for additional call center associates to alleviate wait times. This may treat a symptom, but it doesn't address the root cause. Effective managers look deeper than the surface level symptoms to get at the heart of the problem. Why are so many people calling the support line in the first place?

One very effective tool for getting at root causes is the 5 whys. You simply ask why is a problem occurring, then continue to ask why is that answer contributing to the issue until you arrive at the real issue underlying the problem.

• Why are call center wait times so high?

  • Because a significant number of customers call in.

• Why are so many customers calling?

  • Their orders didn't arrive by the promised date.

• Why didn't the orders arrive in time?

  • The items are on a two week backorder.

• Why are the items on backorder?

  • Manufacturing can't keep up with demand.

• Why can't manufacturing keep up?

  • One of the key machines can only produce half as many items as required to keep up.

Now we arrive at the root of the problem. Since the real issue stemmed from a manufacturing problem, if a manager had stopped their analysis at the surface and hired more call center employees, they might never have uncovered the underlying cause.

Splendor

In the glittery gemstone game Splendor, players take on the role of merchants in the merchants guild competing to develop the most successful empire. In the beginning, they can only purchase a handful of gems from a limited supply, the chief bottleneck being direct competition from the other players. As players begin to develop their tableaus, the key to success is identifying and addressing the weak points in their supply chains. Just as in the real world, when one bottleneck is addressed, a new limiting factor is identified, leading to a constant cycle of problem-solution. Just as Splendor players must continually identify the next bottleneck in their tableau, managers must recognize that solving one constraint often reveals the next.

Tying it all together

Bottlenecks are inevitable in any system, so rather than lament their existence, good managers focus on identifying and addressing the most important ones. Be on the lookout for pain points such as slowdowns in production or services, and spend the extra time digging into the issue, rather than accepting the first evident cause. The extra effort will be well rewarded by uncovering the root cause, increasing efficiency, and building long-term resilience into your systems.