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Constraint-Based Performance Management

Prioritize addressing performance issues based on whether that person/role is currently limiting business growth, not absolute performance level

Decision Rule

Fix performance issues that are constraints before addressing non-constraint performance problems

How It Works

Focuses limited management resources on the bottlenecks that actually matter for business growth

Failure Modes

Ignoring constraint performance issues because they're uncomfortable

Spending too much time on non-constraint improvements

Misidentifying what the actual constraint is

Example Decision

Average marketing coordinator isn't the constraint when sales team can't handle current lead volume - focus on sales performance first