Bottleneck-concentrated strategy - a global perspective

The power of population is indefinitely greater than the power in the earth to produce subsistence for man
Thomas Robert Malthus, British economist, 18th century

The misconception of classical business administration

Today, the late Prof. h. c. Mewes is considered the father of strategic management. Notably, as a newcomer to the academic world, he overturned conventional management theory. Reflecting on his career in 2010, Mewes remarked the advantage of his limited business management training; even esteemed economists were often led astray by false assumptions:
"It is not the aim of a successful company to maximise profits, but rather the effort to offer its environment the greatest possible benefit."
Recent research proves Mewes' so-called bottleneck-concentrated strategy. For example, Hermann Simon discovered in 1992 that all 'Hidden Champions' (small and medium-sized enterprises with substantial global market shares such as Kärcher, Würth, or Rational AG) succeeded by pursuing bottleneck-concentrated strategies, whether knowingly or not.

Spiral models vs. linear-causal management models

A key characteristic of the bottleneck-concentrated strategy is its view of successful corporate strategy as a spiral process, not a linear impact model. This insight supports the growing spectrum of spiral models such as management cybernetics and spiral dynamics, popular in holistic worldviews. Wolfgang Mewes' teaching offers a valuable perspective, enriching not only corporate strategy but our broader understanding of systems.

Two essential characteristics of the model: the key-lock model and the minimum law

The key-lock model

Originating from biology, the key-lock principle asserts that the "lock" (the gateway to a target group) can only be opened with the matching "key." Should companies develop keys without understanding which locks they will open? Analysis must begin with the lock - the customer's need. This requires a highly homogeneous target group with unified needs. For example, a yoga course provider should not define themselves just by their product, but by the need they address (e.g., relaxation, self-awareness, self-conception). Otherwise, they miss market trends, such as falling travel prices to India, diverting customers elsewhere. Bottleneck-concentrated companies recognize these connections and adapt - offering, for instance, accompanied trips to meet evolving customer needs.

Identifying and classifying the target group is essential; otherwise, the appropriate "key" cannot be developed.

The minimum law

The minimum law, also from biology, was discovered by Justus von Liebig in 1840. He observed that plant growth requires multiple factors, and a deficit in one cannot be compensated by an excess of others. For organisms and companies alike, identifying and remedying the limiting factor is crucial. Often, efforts focus on obvious bottlenecks (sales, hiring), but if the solution does not fit the actual "lock," these efforts are ineffective.

Recognizing customer's bottlenecks

Following Mewes and combining biological insights reveals a seemingly simple but revolutionary approach: to offer the greatest benefit, you must understand what your environment needs. Organizations should align their value proposition and communication with customer bottlenecks. The four principles - and later the seven phases - of the EKS Academy offer more on applying this strategy for external orientation.

Thought ahead: identifying your own company bottlenecks

A significant extension of the bottleneck-concentrated strategy is realizing that limiting factors often stem from immaterial attributes: innovation, strategy, employee motivation, or customer trust. Intangible bottlenecks such as fears, needs, beliefs, visions, or obsessions limit a company's growth just as much as tangible ones. Regular analysis and elimination of these bottlenecks are essential for exploiting potential.

Thinking even further: identifying and solving your own bottlenecks

Wolfgang Mewes provides practical tools for problem-solving. For mapping challenges, consider identity pillars (e.g., body, social network, career, material security, values and norms - after H. Petzold; or the eight life pillars by Peter Beer) to describe satisfaction. Subjective assessment helps focus on personal context.

Eliyahu M. Goldratt's Theory of Constraints suggests a systematic approach:

1. Collect all pressing problems
2. Use cause-effect relationships to organize them
3. Apply the 5-Why method for unclear links
4. Exclude problem branches that are consequences, not causes
5. Categorize: direct sphere of influence, indirect sphere, and no influence. Exclude the third.
6. The remaining factors approximate your bottleneck
7. Challenge your beliefs: could these causes be solved if you reconsider your assumptions?

"If I had an hour to solve a problem my life depends on, I would: spend 40 minutes examining the problem, 15 minutes re-examining the exam and 5 minutes solving the problem."
Albert Einstein, Physicist

Zoom out: a global perspective

The key-lock principle and bottleneck-concentrated strategy reveal shortcomings in mass-processing systems, such as education. Boundaries between students, educational institutions, and the labor market often ignore individual connections, which Adam Smith already recognized in 1764 when demonstrating that specialization dramatically increases efficiency.

A bottleneck-focused strategy demands addressing the true needs of each target group, not just offering generic solutions. Adapting goals - not just methods - is crucial for lasting change. Has your organization found its goal, i.e., the bottleneck of its customers? Review your Vision and Mission Statement: does it credibly address customer pain? If not, it may be difficult to maintain focus and efficiency.