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Who owns the bottleneck: decision rights, cycle time, and three published cases

Published survey data and three named operating cases on what happens when no single person can change the rule that is blocking the work.

Published 28 August 2026BriefsKeel Partners

In short

Delay is usually an authority problem, not a capacity problem. McKinsey found 61 percent of managers judge at least half their decision time ineffective. MIT CISR found organisations that decentralise operational decisions sense and seize opportunities in 244 days against 566. Amazon's front-line andon authority removed 50,000 to 100,000 defects a year at a false-positive rate under 2.5 percent. For a 50- to 300-person operator the measure that matters is hours an item waits for someone who can change the rule.

This note is about a measurable operating problem: work that has stopped because no single person has the authority to change the rule that is blocking it. The evidence below is taken from published surveys and named operating cases. Where a number appears, the source is given.

We have not used unpublished client files. Every case below is public, so a reader can check it.

What the survey data shows

McKinsey & Company surveyed more than 1,200 managers across global companies. Fewer than half of respondents said decisions in their organisation were timely. Sixty-one percent said that at least half of the time they spent making decisions was ineffective. McKinsey estimated the opportunity cost, for a typical Fortune 500 company, at about 530,000 manager-days a year — roughly US$250 million in wages, about AED 918 million at the 3.6725 peg. [1]

The cost of an unnamed decision-maker

Fortune 500 scale, McKinsey estimate

61%
Managers reporting at least half of decision time is ineffective
530,000
Manager-days lost per year, typical Fortune 500
AED 918m
Wage equivalent of that loss

Source: McKinsey & Company, "Three keys to faster, better decisions." The opportunity-cost estimate is McKinsey's, not Keel Partners'. AED converted at the 3.6725 peg.

Two findings appearing together is the useful part. Decisions are often not timely, and more than half of the hours spent on them are judged ineffective. That combination is what RAPID would predict when a decision has Recommend, Agree and Input roles but no single Decide: the organisation meets, then meets again.

The AED 918 million figure is a Fortune 500 wage equivalent. The transferable point for a smaller operator is the ratio — if 61 percent of decision time is wasted, adding more governance forums increases the numerator.

Who is allowed to decide

The same pattern appears when researchers measure who is allowed to decide, rather than how many meetings are held. MIT's Center for Information Systems Research surveyed 342 leaders in 2022 — 61 organisations with revenue of at least US$3 billion (about AED 11 billion), 272 below that threshold, with 57 percent of organisations operating outside North America. On average, respondents said only 47 percent of teams in the part of the organisation they knew could make decentralised operational decisions. [2]

Days to sense and seize an opportunity

Large organisations, MIT CISR 2022 Decision Rights for the Digital Era Survey (N=342)

Decentralised decision rights244 days
Centralised decision rights566 days

Source: van der Meulen (2023). Decentralised = at least 50 percent of teams holding operational decision rights.

Where most teams held those rights, large organisations needed 244 days on average to sense and seize a business, customer or technology opportunity. Where operational decisions stayed centralised, the same cycle took 566 days.

Performance against industry average

Percentage points, large organisations only

MeasureCentralisedDecentralised
Industry-adjusted net profit margin−4.0 pp+2.2 pp
Industry-adjusted revenue growth−4.8 pp+5.0 pp
Revenue from products introduced in the last three years19.4%28.8%

Source: van der Meulen (2023), MIT CISR 2022 Decision Rights for the Digital Era Survey.

The gap between 566 days and 244 days is 322 days — a little over ten months. MIT CISR is not measuring meeting quality. It is measuring whether the teams closest to the customer, the process and the data are allowed to decide how to reach a goal leadership has already set.

Centralised firms in the sample sit below industry average on both margin and growth; decentralised firms sit above on both. That is consistent with delay compounding: a late sense-and-seize cycle shows up as missed price, missed capacity and a thinner new-product mix. The sample average of 47 percent of teams holding rights is the expensive middle — some units can act, most still escalate.

Bain & Company's RAPID model (Recommend, Agree, Perform, Input, Decide) is the design rule that matches both surveys: every significant decision needs one named Decide. Supporting roles are voice, not a second vote. [3] If two people must both approve, the MIT cycle-time penalty is the expected result.

Case 1 — Amazon: authority at the point of the defect

Marc Onetto, former Senior Vice President of Operations and Customer Service at Amazon (2006–2013), described the firm's application of Jidoka — the andon principle — in an interview with Planet Lean, the Lean Global Network's magazine, published 24 October 2017. [4]

If a customer reported a product defect and the system showed the same defect had already been reported, the customer-service agent could suspend sales of the item without asking management. Amazon's quality laboratory then inspected the product.

Measured cost and return of front-line authority

Amazon customer service, 2006–2013

50,000–100,000
Defects per year eliminated
Under 2.5%
Andon pulls later judged unnecessary
15 minutes
To fix a bill of materials wrong for five years

Source: Marc Onetto, interview with Catherine Chabiron, Planet Lean, 24 October 2017.

Onetto reported that this process eliminated between 50,000 and 100,000 defects per year during his tenure, and that fewer than 2.5 percent of andon pulls were later judged unnecessary — most of those from bad information or customer error.

He also recorded the first pull in that programme. A customer who had ordered headphones received a hard disk; the vendor had swapped barcode labels on similar boxes. The agent refunded, offered a replacement, and withheld the SKU from the site. Root-cause work with the vendor took a week. The agent did not need a steering committee to stop further units shipping.

The same interview records a General Electric Medical Systems example from Onetto's earlier role: an andon pull on a Tuesday morning traced a parts shortage to a bill of materials that had been wrong for five years. Updating the BOM in the ERP took 15 minutes, once the engineer with write-access was required to act while the line stayed stopped. [4]

The constraint was not parts availability. It was write-access to the bill of materials.

In RAPID terms the customer-service agent is the Decide on a recurring quality decision. The measured cost of that authority was a false-positive rate under 2.5 percent. The measured return was 50,000 to 100,000 defects a year that did not reach a second customer.

For a 50- to 300-person company the analogue is not an andon cord on a website. It is whichever recurring exception currently waits for a director: a claims limit, a credit note, a Tatmeen hold, a SKU withdrawal, a buyer-side offer change.

Case 2 — Corrugated-box plant, East Java

A 2025 operations paper on PT XYZ, a corrugated-box manufacturer in Lamongan, East Java, applied Goldratt's Theory of Constraints and Drum-Buffer-Rope scheduling to a delayed production line. [5] Bottlenecks were identified at the converting (SK-2) and stitching (SK-4) workstations. After the five focusing steps of TOC, DBR flow control, and additional hours at the constraint stations, reported throughput rose 32.53 percent.

Reported throughput before and after constraint management

PT XYZ, Lamongan, East Java, 2025

BeforeIDR 5,424,572
AfterIDR 8,040,195 (+32.53%)

Source: Indonesian Journal of Innovation Studies. Figures as published in IDR; approximately AED 1,225 and AED 1,815 at prevailing rates.

A second 2025 food-manufacturing TOC study reported a related pattern. Cooling and packaging were the constraint, with cycle times of 21.6 and 24.1 seconds per unit and utilisation above 90 percent. Addressing those stations moved three measures at once. [6]

Effect of managing the correct constraint

Food-manufacturing TOC study, 2025

148 → 176
Units per hour (+18.9%)
1,255 → 1,080
kWh per shift (−13.9%)
−45.8%
Idle time

Source: Jurnal Ilmiah Teknik Industri, 2025.

Neither plant bought a new market or a new strategy. Throughput moved because capacity was added only at the constraint, and non-constraint stations were subordinated to it.

The 32.53 percent and 18.9 percent gains are therefore a test of diagnosis. If a Gulf operator adds people or software across the whole chain and throughput stays flat, either the constraint was not identified or the Decide at that constraint was not named. Idle time falling 45.8 percent in the food case is the signature of a correctly chosen bottleneck: stations previously starved or blocked start flowing once the constraint is managed.

What to measure in a 50- to 300-person operating company

For a Gulf or European operator in the size band Keel Partners takes, the Fortune 500 wage figure is not the relevant unit. The transferable metric is decision cycle time at the constraint: hours an item waits for a person who can change the rule.

A practical instrument, consistent with RAPID and with the TOC five focusing steps:

StepQuestionOutput
1. IdentifyWhich pile of work has the longest wait for a decision this week?Named constraint — process and location
2. Name the DWho can change the rule, sequence or person without a committee?One Decide name. If two names are required, there is no D
3. Time-boxHow many hours does a typical item wait for that D?Baseline in hours
4. ExploitGive that D a 48-hour window to change the rule, sequence or personDated authority, not a new forum
5. RecheckWait time after 10 working daysSecond measurement, same definition
This is the minimum measurement the McKinsey and MIT CISR results imply: cycle time, and a single Decide. Everything else is commentary.

Gulf context, where the data exists

The same ownership gap shows up in regional operating systems, not only in US or East Asian plants.

The regional exposure

GCC pharmaceutical supply

~80%
GCC pharmaceutical supply that is import-dependent
AED 87bn
Regional pharmaceutical market, c. US$23.7bn
~80%
Volume moving via GCC airspace or the Strait of Hormuz

Sources: AGBI and related GCC pharmaceutical-market reporting, 2026; Baker McKenzie, May 2026. AED converted at the 3.6725 peg.

GCC pharmaceutical supply remains roughly 80 percent import-dependent. [7] Baker McKenzie, writing in May 2026, put the regional pharmaceutical market at about US$23.7 billion — roughly AED 87 billion — with close to 80 percent of volume moving through GCC airspace and/or the Strait of Hormuz. [8]

In an 80-percent-import system the constraint is rarely manufacturing capacity inside the UAE. It is a release, a reroute, a temperature exception or a Tatmeen hold. Those are RAPID decisions. If the Decide is unnamed, wait time follows the GE pattern — years of a known defect in the record, minutes to fix once write-access is forced. The MIT CISR 322-day gap is the strategic version of the same delay.

  • Name the pile of work with the longest decision wait this week
  • Name one person who can change the rule without a committee
  • Measure the wait in hours, before and after

Sources

[1] McKinsey & Company, "Three keys to faster, better decisions" (survey of more than 1,200 managers). Related: Aaron De Smet, Gerald Lackey and Leigh Weiss, "Untangling your organization's decision making," McKinsey Quarterly, June 2017.

[2] Nick van der Meulen, "Realizing Decentralized Economies of Scale," MIT CISR Research Briefing, Vol. XXIII-1, 19 January 2023. Based on the MIT CISR 2022 Decision Rights for the Digital Era Survey (N=342).

[3] Bain & Company, RAPID decision-rights framework (Recommend, Agree, Perform, Input, Decide).

[4] Marc Onetto, interview with Catherine Chabiron, "Marc Onetto on his experience with Jidoka at GE and Amazon," Planet Lean (Lean Global Network), 24 October 2017. planet-lean.com

[5] Corrugated-box TOC/DBR study at PT XYZ, Lamongan, East Java, February 2025. Reported throughput IDR 5,424,572 to IDR 8,040,195, +32.53 percent. Indonesian Journal of Innovation Studies.

[6] Food-manufacturing TOC energy and bottleneck case: throughput 148 to 176 units per hour; energy 1,255 to 1,080 kWh per shift. Jurnal Ilmiah Teknik Industri, 2025.

[7] AGBI and related GCC pharmaceutical-market reporting, 2026: regional import share of approximately 80 percent.

[8] Baker McKenzie, "Middle East: Pharmaceutical Supply Chains Under Gulf Geopolitical Pressure," May 2026. Regional market estimate c. US$23.7 billion.

Keel Partners FZE LLC is a boutique, operator-led management consultancy based in Dubai. This article is for professional information; it is not regulated advice. Currency converted to AED at the USD peg of 3.6725 where the source published in US dollars. Next in this series: market-entry cycle time in the Gulf, using published FDI and company-formation statistics.
Pratap ChandraFounder & Managing Partner, Keel Partners
IIM Calcutta (PGPEX). 20+ years running P&Ls in FMCG, retail and healthcare across India and the GCC.

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