theory of constraints Archives - Scrum Master Toolbox Podcast

BONUS: Your Developers Got 20x Faster — Now Watch Your Product Managers’ Heads Explode

Clarke Ching is “The Bottleneck Guy” — and he just spotted the bottleneck that AI is about to create in every software organization. It’s not in the code. It’s inside the heads of the people who decide what gets built. In this conversation, Vasco and Clarke unpack why speeding up developers with AI tools pushes the real constraint upstream — onto product managers, designers, and leaders — and what to do before cognitive overload crushes the people your organization depends on most.

Every Business Has a Bottleneck — Most Are in the Wrong Place

“Every single client I have is a detective puzzle. We’re looking for this quiet killer sitting inside their business, siphoning off money. And if you look at them without the idea of going ‘where’s the bottleneck?’ — you mistake the busyness for productivity.”

Clarke approaches Theory of Constraints like a detective story, not a physics lecture. Every business has a bottleneck — the narrowest point that chokes throughput. The question isn’t whether you have one, it’s whether it’s in the right place. In software development, Clarke argues, the bottleneck should almost always be the developers. Not because they’re slow, but because they’re the pacing resource — like the aircraft carrier in a naval fleet that sets the speed for everything else. When developers are the bottleneck, the people upstream (product managers, designers, architects) have time to curate high-quality, high-value inputs. The people downstream (testers, ops) can deliver fast feedback. Everything flows. But when the bottleneck drifts somewhere else — and nobody notices — everyone gets busy, nothing flows, and the organization mistakes that busyness for productivity. Clarke’s latest book, The Speed Book, lays out how to find where your bottleneck actually is and move it to where it belongs.

AI Just Moved the Bottleneck — And Nobody’s Talking About It

“Just imagine one person trying to feed 100 developers. It’s ridiculous. Everyone goes, ‘oh, that’s just crazy.’ But that’s kind of going to be what it’s like.” Continue reading BONUS: Your Developers Got 20x Faster — Now Watch Your Product Managers’ Heads Explode

Peter Merel: AI Alignment Is the Agile Coach’s Next Frontier — Using Throughput Accounting and Pull-Based Transformation to Prove Value

“Our jobs ARE about alignment. Alignment is how do we get all of the people and all of the tools to work together for mutual benefit.” – Peter Merel

Peter Merel brings a provocative perspective on the biggest challenge facing agile professionals today: AI and agile alignment. With AI rapidly advancing, Peter observes that everyone in the agile community is afraid for their jobs — but argues this fear is misplaced. The real challenge isn’t replacement; it’s alignment. How do we get biological and electronic entities to work together for mutual benefit? Peter’s answer begins with pull-based transformation — building a thin steel thread from business through to DevOps, proving it works with a small group, then growing it. He connects this to Goldratt’s throughput accounting, arguing that throughput (operating expense plus net profit) is the only metric immune to Goodhart’s Law.

From throughput, Peter derives three flows: value flow (throughput itself), workflow (the first derivative — what increases value flow), and learning flow (the second derivative — what improves workflow). He then introduces the pirate metrics (AARRR) — acquisition, activation, retention, referral, and revenue — as market constraints that can be analyzed through Theory of Constraints. Peter’s frustration is that 25 years after Agile began, most business stakeholders still can’t identify their market bottleneck. Without that knowledge, he argues, priorities are meaningless. The path forward for agile coaches? Bring scientific rigor to transformation, measure what matters, and prove value before scaling.

In this episode, we refer to FAST Agile, Joe Justice’s work with Tesla and WikiSpeed, and the connection between throughput accounting and agile transformation metrics.

Self-reflection Question: Can you identify the single biggest market constraint limiting your organization’s throughput right now — and if not, how confident are you that your current priorities are the right ones?

Transform Your Agile Teams with Hard-Earned Lessons from Super-Experienced Scrum Masters

Do you wish you had decades of experience? Learn from the Best Scrum Masters In The World, Today! The Tips from the Trenches – Scrum Master edition audiobook includes hours of audio interviews with SM’s that have decades of experience: from Mike Cohn to Linda Rising, Christopher Avery, and many more. Super-experienced Scrum Masters share their hard-earned lessons with you. Learn those today, make your teams awesome!

About Peter Merel

Credited in the first agile book (XP Embraced), keynoted the first agile conference, invented the first agile training game, founded the xscale alliance, authored the agile way, Peter developed software by hand for forty years, coached agile in person for twenty years, and is working now to revolutionize the AI alignment landscape.

You can link with Peter Merel on LinkedIn. You can also find his work at agile.way.pm.

BONUS: Why Your Plan Is Lying to You — #NoEstimates, Throughput, and the Superstition of Project Management

This episode is a cross-post from The EBFC Show, Felipe Engineer-Manriquez’s podcast exploring Lean and Agile in construction. In this conversation, Felipe interviews Vasco about the #NoEstimates movement, throughput-based planning, and why traditional project management is still stuck in the middle ages of managing creative work.

The Human Side of Scrum That the Scrum Guide Doesn’t Cover

“When you go into a daily meeting and you start looking at the people in that room, maybe they are the exact same people that were there yesterday, but the team is totally different. Somebody might have had a bad night’s sleep, somebody might have had an argument with their spouse. These are human beings. These are not machines that you can just distribute work to.”

Vasco’s path to agile coaching started with a realization that most practitioners eventually reach: the problems in software development aren’t technological. They’re about people — getting agreements, sharing information at the right time, making the collective brain of a team actually function.

The Scrum Guide gives you organizing principles — how many meetings, who’s in them — but it says almost nothing about the real-time feedback cycle between humans that makes or breaks a team. That’s why the Scrum Master role exists: to be the lubricant for human interactions, to break down complex ideas into items the collective mind can process. It’s the piece that makes Scrum work, and it’s the piece that’s hardest to teach.

From Project Manager to #NoEstimates — The Bet That Changed Everything

“The PM wanted 15 items per sprint, and the team said ‘yeah, we can do 15.’ I said, this is not gonna happen. The team had been delivering between five and eight items per sprint. I said, I’m gonna be positive — I’m gonna say seven. And no surprise, by the end of the sprint, they delivered seven.” Continue reading BONUS: Why Your Plan Is Lying to You — #NoEstimates, Throughput, and the Superstition of Project Management

Agile in Construction: Over-Commitment and Silence—The Deadly Duo Destroying Your Teams With Felipe Engineer-Manriquez

“I don’t think people are bad. They don’t self-destruct because they’re bad. What I do see is people getting crushed in terribly bad systems.” – Felipe Engineer-Manriquez

Felipe shares a powerful insight about team dysfunction: teams don’t self-destruct because of bad people—they get crushed by broken systems. On a hospital construction project, he witnessed a dangerous pattern: over-commitment coupled with silence. People would commit to pouring concrete on Thursday when there wasn’t even rebar in place—a physical impossibility. But psychological safety was so low that no one could say the emperor had no clothes. Felipe’s approach? Ask obvious questions that break the pattern. “Don’t you need this so you can do that?” This simple question, framed with verb-noun phrases, surfaces what cannot be spoken. He positions himself as “just a simple, dumb general contractor” who doesn’t understand—creating safety for others to speak truth. The turning point comes when you slow down, make work visible, and allow people to say no. As Felipe puts it: “For real accountability, if people are not allowed to say no, then they actually can’t make a real promise.” Silence is not alignment, and saying yes in low-trust environments is actually hiding from accountability.

In this segment, we talk about psychological safety and systems thinking in team dynamics.

Self-reflection Question: When you see a team over-committing to impossible deadlines, what question could you ask that surfaces the truth without putting individuals at risk?

Featured Book of the Week: The Goal by Eliyahu Goldratt

Felipe chose The Goal by Eliyahu Goldratt as the most transformative book of his early lean career. He describes it as “the number one game changer”—a fictional story that teaches the Theory of Constraints in a way you can internalize. The famous “Herbie story” within the book illustrates how helping the slowest part of a process speeds up the entire system. Felipe emphasizes that Theory of Constraints is often skipped in Scrum training when classes run out of time, leaving many credentialed Scrum Masters without this essential knowledge. He uses these principles daily with the Last Planner System in construction—creating visual boards that look like Gantt charts (because construction loves schedules) but function like Scrum boards with days of the week instead of “to do, doing, done.”

Transform Your Agile Teams with Hard-Earned Lessons from Super-Experienced Scrum Masters

About Felipe Engineer-Manriquez

Felipe Engineer-Manriquez is a best-selling author, international speaker, and host of The EBFC Show. A force in Lean and Agile, he helps teams build faster with less effort. Felipe trains and coaches changemakers worldwide—and wrote Construction Scrum to make work easier, better, and faster for everyone.

You can link with Felipe Engineer-Manriquez on LinkedIn.

You can also find Felipe at thefelipe.bio.link, check out The EBFC Show podcast, and join the EBFC Scrum Community of Practice.

Renee Troughton: Managing Dependencies and Downstream Bottlenecks in Scrum

“For the actual product teams, it’s not a problem for them… It’s more the downstream teams that aren’t the product teams, that are still dependencies… They just don’t see that work until, hey, we urgently need this.” – Renee Troughton

Renee brings a dual-edged challenge from her current work with dozens of teams across multiple business lines. While quarterly planning happens at a high level, small downstream teams—middleware, AI, data, and even non-technical teams like legal—are not considered in the planning process. These teams experience unexpected work floods with dramatic peaks and troughs throughout the quarter. The product teams are comfortable with ambiguity and incremental delivery, but downstream service teams don’t see work coming until it arrives urgently. Through a coaching conversation, Renee and Vasco explore multiple experimental approaches: top-to-bottom stack ranking of initiatives, holding excess capacity based on historical patterns, shared code ownership where downstream teams advise rather than execute changes, and using Theory of Constraints to manage flow into bottleneck teams. They discuss how lack of discovery work compounds the problem, as teams “just start working” without identifying all players who need involvement. The solution requires balancing multiple strategies while maintaining an experimentation mindset, recognizing that complex systems require sensing our way toward solutions rather than predicting them.

Self-reflection Question: Are you actively managing the flow of work to prevent downstream bottlenecks, or are you allowing your “downstream teams” to be repeatedly overwhelmed by last-minute urgent requests?

Transform Your Agile Teams with Hard-Earned Lessons from Super-Experienced Scrum Masters

About Renee Troughton

Renee is one of the most experienced Agile coaches in the Southern Hemisphere with over two decades of transformation experience across banking, insurance, pharma, and real estate. Since 2002, she’s helped organizations go digital, tackle systemic issues, and deliver value faster. Passionate about cutting bureaucracy, Renee champions a return to humanity at work.

Follow Renee’s work at AgileForest.com, her website as well as her work on the Agile Revolution podcast.

You can link with Renee Troughton on LinkedIn.