Applying the Theory of Constraints to Leadership Priorities
In The Goal by Eliyahu Goldratt, the Theory of Constraints (TOC) is introduced as a way to improve production and profitability by identifying and resolving bottlenecks. The power of this theory, however, extends far beyond the factory floor. For business owners and CEOs, it offers a compelling framework for prioritizing leadership focus.
Every business has constraints—points in the system that limit overall performance. But for a leader, the most dangerous constraint is not always operational. It may be relational, cultural, or managerial. It may lie within the organization—or within the leader himself.
One of the most common misapplications of a CEO’s energy is the pursuit of comfort tasks: areas of strength, routine, or identity that feel safe and rewarding. For some, it’s diving into the bookkeeping because numbers make sense. For others, it’s reworking the marketing copy, or obsessing over product design. These activities are not wrong—many times, the leader is genuinely talented in them—but they are not always the constraint.
When Strength Becomes a Distraction
It can be surprisingly hard to let go of the very things that earned us our reputation as competent, capable professionals. A business owner known for financial mastery might feel responsible for maintaining perfect books, even while his middle managers flounder in accountability. But no amount of balanced ledgers will resolve a bottleneck in team leadership.
This is where TOC serves the CEO well:
The constraint is the priority. Everything else must serve the constraint.
When the bottleneck is cultural—say, a weak follow-through culture among supervisors—the leader must resist the gravitational pull of his “comfort zone” and lean into the real need. That may mean coaching managers in real-time accountability. It may mean confronting tolerated underperformance. It may require setting aside things the leader enjoys or excels at, for the sake of what the organization truly needs to move forward.
Trusting Others to Own What You’ve Mastered
Another implication of TOC is trust. Addressing the constraint often requires delegating well, so that time and energy can be reallocated. This might feel risky. After all, the subordinate may not do the job exactly the same way. But if the books are 95% as accurate and the culture of accountability gets fixed, the business wins.
Leadership is stewardship. The wise leader asks, “Where can my leadership do the most good right now?”
And then—critically—has the discipline to say no to everything else, including the comfortable and familiar.
Coaching Through Constraints
As a professional coach, I guide leaders through this decision-making process. We map out the constraints, distinguish the essential from the merely familiar, and move energy toward the high-leverage point. When leaders embrace this mindset, they become less reactive and more strategic. Their teams mature. Their businesses grow. And most importantly, they stay focused on what matters most.
Joseph Bartosch, EdD
Certified Professional Business Coach