The Surprising Power of Limits
Let’s face it: nobody likes constraints at first. We all want our freedom. But here’s the twist: constraints are actually our friend. Knowing what you can’t do helps you laser-focus on what you can do. Instead of chasing every possibility, you zero in on what really matters.
When a new strategy is on the table, there’s often a push for “more”—more money, more people, more time. But guess what? Adding more tends to make things messier. More complexity, more decisions, more things to manage. The real magic happens when it’s clear that more isn’t coming. That’s when everyone rolls up their sleeves and figures out how to make it work with what they’ve got.
Look at what happened during COVID. Overnight, companies had to adapt to remote work, and that constraint sparked a wave of innovation—better collaboration tools, more flexible work policies, and, for many, a healthier work-life balance. Forced constraints led to real progress.
Or take Costco’s famous $1.50 hot dog. When asked what it would mean if the price of the hot dog combo ever went up, Jim Sinegal, the founder of Costco, replied, “That I’m dead.” Instead of raising prices, Costco got creative. They switched from Sinai hot dogs to their own Kirkland brand, found ways to lower the cost of condiments, and even invested in soda machines to cut costs further. It works because it reinforces Costco’s promise of value. Constraints forced them to innovate and stay true to what their customers love.
The shot clock in basketball was a game-changer from the beginning. When the 24-second shot clock was introduced in the NBA in 1954, it immediately revolutionized the game. Players felt rushed at first, but soon they adapted. Scoring skyrocketed, and games became more exciting. Fans loved it. Attendance shot up by 40%. The shot clock didn’t just change the game; it saved it. NBA President Maurice Podoloff called it “the most important event in the NBA.”
Constraints like these work because they make people think differently. Without limits, we tend to coast. We take the easiest path, and go with the most obvious idea. But when you face a real constraint, we dig deeper. We get creative. We start connecting the dots in new ways, and that’s where innovation happens.
One of the most common type of constraints is the deadline. Kevin Kelly, co-founder of Wired magazine and a prominent futurist said:
"It took me a long time to figure out that I needed deadlines. Deadlines were the difference between a dream and something that you complete. And what happens with deadlines is that you’ve got to ship, you have to abandon the project, and it’s not perfect. Because it’s not perfect, you kind of have to be ingenious about making it a little different. And I find that the deadlines force me to make decisions that you don’t have enough time [for]; you never have enough time. And so you think of something to—I wouldn’t say it’s a shortcut—you think of a way to finish it, and those little decisions are what make it a little different."
Deadlines force decisions. And in that pressure, you find creative solutions you wouldn’t have come up with otherwise.
When there are no constraints we can often lazily take the obvious route—the path of least resistance. But when you impose smart limits, you create focus. Suddenly, people are challenged to think outside the box, to come up with new ways of doing things, to turn a “no” into a “how.”
How to Use Constraints to Your Advantage
So how do you use constraints to drive your strategy? Start by thinking of constraints as catalysts, not obstacles. Look for ways they can sharpen your focus and fuel innovation—just like Costco used its price limit to reinforce its value proposition or how the shot clock transformed basketball into a faster, more dynamic game.
Here are three ways to make constraints work for you:
Set Ambitious but Achievable Deadlines:
Deadlines create urgency and force decisions. When the clock is ticking, you don’t have time for endless discussions or chasing perfection. Instead, you find ways to get things done. Push yourself and your team with challenging deadlines that are just within reach. It’s amazing how resourceful and creative people become when they know the clock is running out.
Resist Adding More:
More resources often lead to more complexity—more moving parts, more things to manage, more room for confusion. Start with what you have. Tell your team, “This is it—we have to make it work.” Limiting inputs like time, money, or people forces creative problem-solving and cuts out the noise. It’s like when companies had to pivot during the pandemic; they didn’t have time or resources to wait for the perfect solution—they had to make do and innovate with what they had.
Set High Customer Experience “Must Haves”:
Define the non-negotiables. What are the absolute “must-haves” that will wow your customers or differentiate your product? Like Costco’s hot dog or Google’s product standards, make sure these “must-haves” raise the bar. This clarity ensures everyone is working towards the same goal, with a focus on delivering something truly valuable. When your team knows exactly what success looks like—what’s required and what’s off the table—they’re freed up to be creative within those boundaries.
Of course, don’t go overboard with the constraints. Too many, and people will feel boxed in. Constraints should motivate, not frustrate. The key is to find the right balance. Use the constraints that are naturally there, and apply new ones thoughtfully. Maybe dial it up a notch when you need to spark some creativity, but don’t make it artificial or overcomplicated.
Not everyone will see constraints the same way. Some will take them as a challenge; others will see them as a roadblock. That’s where good leadership comes in. It’s up to you, as a leader, to frame constraints as opportunities. Show your team how these limits are there to sharpen their thinking, not to limit it. Help them see constraints as a creative puzzle to solve.
So, next time you face a constraint, don’t fight it—embrace it. Constraints can make us smarter, more focused, and ultimately more creative. When you learn to see constraints as opportunities, you turn potential roadblocks into the very things that help you win.
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This post is an excerpt from my upcoming book, a practical handbook for executing strategy from an operator’s point of view. Drawing on decades of real-world experience, it’s designed to help leaders turn strategy into action through clear, actionable steps. Stay tuned for more insights and updates as we get closer to launch!
