Wednesday, 14 November, 2012 Leave a comment
Drivers of Complexity
This is a brief but by no means exhaustive summary of some of the drivers for increasing complexity in a business. These include but are not limited to:
- Increasing customer choice through product proliferation
- Pressure for diversification of products & customers
- Many engineers, accountants and technologists (who love to work in complexity)
- People creating complexity to secure their jobs & positions
- Processes that people have been modifying for years without regard for the impact these changes have on the output
- Information departments / systems seeking or delivering ever increasing detail just because they can!
- Complex planning systems (or no planning systems)
- Increasing compliance requirements
- Belief that rigour equates to volume (e.g. of reports) when it comes to analysing, justifying and planning.
The drivers for simplifying a business have in the past generally only been exploited when the business is under intense pressure to improve performance i.e. when it is in trouble, as often occurs during economic downturns. It is a shame these drivers only appear in times of trouble rather than growth, for if they were a focus during good times then more businesses would perform well. Read more of this post