Manage complexity and add 5% to earnings! OK, so don’t take my word for it…


…80 year old Global Consultancy firm AT Kearney (ATK) say so. ATK appear to have a better understanding of complexity than most. So, I will happily let them tell you that, even by  using the methodology they outline below, they claim that managing complexity will add up to 5% to earnings.

I hope that’s got your attention!? Because it gets even better.

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WE BELIEVE THEM but can’t help but wonder how much more could be achieved if their means of calculation didn’t sound like a question for contestants in a Mensa “Brain of the Year” IQ competition! The process sounds pretty daunting and has all the potential to be a source of complexity in itself.

What they need is a means to measure complexity utilising the type of data that any well-run corporation collate as a matter of course. So that the measurement and management of complexity is an ongoing process NOT one of the jobs that the CFO or his/her staff dread.

There is only one company that can deliver that type of capability.

If ATK have such confidence in adding (up to) 5% to earnings as a result of a protracted, consultative, (qualitative/subjective) process – where the “observer”, inevitably, affects outcomes – imagine what could be achieved by undertaking a 100% quantitative (objective) assessment,  using data currently generated by the enterprise!

“Risk Leaders” are those who recognise the competitive advantage to be gained by managing complexity: in existing operations (improving operational effectiveness); asset management; designing new processes; mapping & monitoring interdependencies; creating new products; internal risk and credit management; IT systems management; assessing Mergers & Acquisitions; managing supply chain risks, etc. Read more of this post