The theory of constraints has the potential to increase throughput significantly, using existing resources. It consists of seven focusing steps that, when applied, can create extra capacity in operating rooms, emergency departments, imaging services, labs, and so on. The seven steps are simple, intuitive, and easy to implement. This chapter discusses the first three steps of the theory of constraints: determining the system’s goal, establishing global performance measures, and identifying the system constraint. Tools are provided for identifying bottlenecks and determining measures of performance for the system. It also introduces the cost-utilization diagram that provides managers with a full-system view.