Added：2024/12/27

Barrel Theory
For the development of enterprises, there is a very appropriate analogy --- "bucket theory": how much of a bucket filled with water, does not depend on Tongbi longest piece of wood, but rather depends on the Tongbi the shortest piece of wood. The summary of the law of the people as "bucket theory."

According to this core content, there are three inference Barrel Theory:

Only constitute a bucket of wood are all high enough, the bucket can be filled with water;

Higher than the lowest board all the wood parts are meaningless, more high, the greater the waste;

To increase the capacity of casks, planks should try increasing the height of the lowest height, which is the most effective and most direct way.

Barrel Theory tells us: a missing along the mouth of the bucket, the number of holding water, not the longest piece of wood on the barrel, but in the shortest piece of wood, in order to improve the overall bucket capacity, not to lengthen the longest piece of wood, but to work hard in turn filled the shortest plank.

You can easily find common barrel and enterprises, which constitute the various parts of the system are often missing the merits, the poor part of the whole system often determines the level. Because the shortest plank of wood on the longest play the role of limitations and constraints to determine the combat effectiveness of the whole system, affecting the overall strength of the whole system.

Thus, an organization is not alone in highlighting a particular aspect of the superior and can be invincible, but look at the overall condition and strength; a group, whether it has a strong competitive edge often depends on its whether there was a glaring weaknesses. Decided disadvantage strengths, weaknesses life and death, this is the brutal competition in the market rules.

Extended to the enterprise management, the constraints are often a minority enterprise development, and one or two important and critical issues, such as management ability, capital, technology, human resources issues. If we take the business as a barrel, while the business resources necessary components and elements of metaphor for each piece of wood casks, such as: capital, technology, personnel, product, marketing, management, etc., then performance of an enterprise to obtain the size of most enterprise resource depends on the shortage of resources and elements.

Another point of view, in the enterprise's ability to sell, market development capability, service capacity and production management, if a slightly lower capacity, it is difficult in the market long-term profit.

In fact, a business to do better, management has the potential to be tapped, in other words, each firm has its weaknesses, it is these aspects of the enterprise or even a waste of many idle resources, can not play its due role. Such as the common buck-passing, decision-making inefficient, ineffective implementation of such weak links, are seriously affected and restricted the development of enterprises.

Therefore, the companies want to do a good job, and stronger, to be from product design, pricing policy, channel development, brand cultivation, technology development, financial control, team training, culture, philosophy, strategic orientation and other aspects one by one to do bit Caixing. Link is too weak to have any business in competition may result in a disadvantageous position, and ultimately lead to failure of the consequences.

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