A company's growth is limited by one of five constraints in a specific hierarchy. Leaders should diagnose them sequentially. First, ask if you have enough demand. If not, that's your only focus. Once solved, move to internal capacity, then external supply, then cash, and finally management attention.

Stop comparing your business metrics to industry averages. Since the average business is often struggling, aiming for average is a recipe for mediocrity. Winners are, by definition, outliers who reject average as their standard and build from first principles.

The greatest performers, from athletes to companies, are not just the most talented; they are the best at getting better faster. An obsession with root-cause analysis and a non-defensive commitment to improvement is the key to reaching otherwise unachievable levels of success.

Instead of fixating on competitors, Red Ventures built its success by focusing on compounding its own performance month-over-month. This internal benchmark created a virtuous cycle addicted to incremental improvement, which became a more powerful and sustainable growth engine than reactive, market-focused competition.

By reopening a failed GM plant with the same union workers, Toyota demonstrated its management process alone could transform the worst-performing factory into the best. This proves the immense power of systems over just hiring "A-players."

Instead of over-analyzing and philosophizing about process improvements, simply force the team to increase its cadence and ship faster. This discomfort forces quicker, more natural problem-solving, causing many underlying inefficiencies to self-correct without needing a formal change initiative.

Ford CEO Jim Farley relies on "Gemba," a Japanese principle of "go and see with your own eyes." For a major EV strategy shift, he personally inspected a torn-down competitor's car, counting fasteners and examining the wiring loom to understand the manufacturing gap firsthand before making a decision.

Applying the Theory of Constraints, a startup's growth is limited by a single bottleneck in its factory (pipeline, sales, or delivery). Improving onboarding is useless if you have one sales call a month. All focus must be on solving that single constraint to make progress.

Contrary to the idea of limitless brainstorming, true innovation accelerates when leaders define clear boundaries. As seen in Lego's turnaround, providing constraints challenges teams to develop more focused, creative, and profitable solutions within a limited space.