Help to Grow: Management Course | Kingston University

How to identify flow is blocked in your business?

As a founder or senior business leader, one of the toughest questions you face is: where should I be focusing my time and resources? With so many moving parts, it’s easy to get lost One effective way to tackle this challenge is to look at how value flows through your business from start to finish. A plumbing analogy can help visualise this process and identify where your attention is most needed. 

The Flow of Value: A Plumbing Analogy 

Think of your business as a series of pipes and tanks that transport water (value). At the top is a full storage tank (A), representing your sales and marketing. This indicates a steady stream of orders coming in. However, for the value to reach its destination—the bucket (H), where you collect revenue or deliver services—it must pass through other areas of the business (B, C, and D). 

Each pipe represents a department or process, and their size symbolizes capacity. The problem arises when one section, such as D, becomes constricted. This bottleneck slows down the flow of value, even if everything upstream is working well. 

Where Is the Bottleneck? 

For example, an events company had a strong sales pipeline (A), and orders moved to planning teams (B and C). However, site planning (D) faced logistical issues with partners, causing delays. As a result, other departments (E and F) couldn’t do their work on time, affecting visitor ticket sales. Despite strong exhibitor sales, revenue trickled into the bucket because of the bottleneck at D. 

What Should You Do? 

Many leaders instinctively invest more in what’s already working, such as increasing sales or pushing downstream teams to work harder. But the real issue is the bottleneck at D. Leadership 

needs to focus on resolving these pinch points, whether by revisiting policies, adjusting goals, or reallocating resources to ensure value flows smoothly through the business. 

Mapping Your Own Flow 

If this analogy resonates, try mapping out your business. Identify where the flow of value slows—whether in sales, production, finance, or delivery—and direct your efforts there. By focusing on the bottlenecks, you’ll see a greater impact than just improving areas that are already running smoothly. 

Key Takeaways: 

  • Don’t ignore the bottlenecks: Even a small blockage can slow the entire flow of value. 
  • Ensure the thin pipes are full: Spare capacity here negatively affects the next stage of the process. 
  • Don’t invest in what’s already working smoothly if there’s a blockage down the line that’s preventing value from reaching its destination. 

Join us for the “Operational Efficiency” session in the Help to Grow program to learn more about mapping your value flow effectively. https://kingstonuniversitybusinesstraining.com/

About the author:

Melanie is the expert speaker for Help to Grow Programme at Kingston University. She combines lecturing with a thriving leadership training business, she an expert speaker on the UK government backed ‘Help to Grow’ programme for small and medium sized enterprises (SME’s). Her entrepreneurial journey includes the successful launch of two companies, and she has contributed her expertise to shape the strategic and commercial aspects of numerous startup ventures spanning diverse sectors such as media, technology and data management. Clients include dentsu Merkle, Ziff Davis, The Stage and The Bookseller and Kantar Research.

Entrepreneurial Leadership: Maggie Walker

The saga of Maggie Lena Walker — a beacon of ingenuity in the turbulent seas of post-Civil War America. Her story, a vibrant tapestry of resilience and creativity, offers a treasure trove of insights for today’s small business leaders and founders through her entrepreneurial leadership.

In a recent podcast on Harvard Business Review, the conversation explored the remarkable navigation into the realm of business both as an insider being a born American and outsider due to being a Black community member in America.

Picture this; You are at the helm of a sinking ship (read: business) with a measly £31 in your account and £400 in debt. What do you do? If you’re Walker, you roll up your sleeves and get to work. She slashed costs (including her own salary — talk about leading by example) while simultaneously drumming up new members. It’s the entrepreneurial leadership, equivalent of patching holes while also building a better boat.

I have put together some of the remarkable learnings discussed in the podcast that SME owner-managers can take away from Walker’s leadership.

  1. Turnaround strategies: When facing financial difficulties, focus on both cost management and revenue growth. Walker reduced costs by cutting her own salary and consolidating operations, while simultaneously working to increase membership and expand services.
  2. Diversification and synergy: Consider creating mutually reinforcing businesses. Walker established a newspaper, bank, and store that supported each other and the broader organisation’s mission.
  3. Community focus: Serve unmet needs in your community. Walker’s businesses catered specifically to the African-American community, providing services that were otherwise unavailable to them.
  4. Perseverance: Be prepared to face and overcome significant challenges, especially if you’re breaking new ground. Walker faced discrimination and attempts to shut down her businesses but persisted.
  5. Continuous learning: Invest in your own education and seek mentorship. Walker attended night school to learn accounting and sought guidance from experienced bankers. (See our Help to Grow programme at Kingston University that grants access to10 hours of personal mentoring from Industry leaders and coaches: Help to Grow: Management Course | Kingston University (kingstonuniversitybusinesstraining.com))
  6. Innovation in leadership: Be willing to challenge norms and create new opportunities. Walker created leadership roles for women when it was uncommon to do so.
  7. Leverage personal networks: Use your connections and deep local roots to overcome challenges and gain support.
  8. Social responsibility: Consider how your business can contribute to broader social causes. Walker used her businesses to advocate for rights and improve her community’s economic situation.
  9. Adaptability: Be ready to pivot or consolidate when faced with insurmountable obstacles. When suppliers were cut off from her store, Walker focused on her other successful ventures.
  10. Start small and grow: Walker’s success came from starting with small, focused initiatives that grew over time.

These takeaways demonstrate how SME owners can navigate challenging environments, serve their communities, and grow their businesses through innovative leadership and perseverance.

Find out more about how 700+ SME business owner-managers and entrepreneurs grew their businesses with support from the Help to Grow Management Programme at Kingston University,  took off with a growth action plan and thoughtful entrepreneurial leadership: Help to Grow: Management Course | Kingston University (kingstonuniversitybusinesstraining.com)