Overwhelmed? How to reduce complexity!
The Challenge
Let me give you an example of a challenge. I’m sure you made this or a similar experience.
Last year you and your leadership team set strategic and financial goals for the upcoming year, maybe you even set up a 3-year business plan.
Now as 2023 has started, you take a closer look, recognizing the complexity of your plan. So many projects, restricted human resources, and of course the regular work, which must be done to keep your business running.
Is the business plan still achievable or did you aim for too many targets?
So, let us look at your options:
a. Adjust your plan?
b. Reduce your goals?
c. Postpone your goals
I’m sure you won’t like any of these answers and none of them are an option.
So here is what you could do:
Simplify
Simplify and take out the complexity. Take out anything, which is not serving you to reach your goals and to fulfill your business plan. But how? Here are some ways to simplify within your company.
Be aware that there is a huge difference between activity and productivity. Just a small reminder! That topic is for later. Let’s focus on how you could take out the complexity within your company.
Prioritize
First, prioritize your goals, if you have not done that already setting up your business plan last year.
To prioritize is almost an overused word in my option and to make it worse priorities are used in the plural.
Originally priority only existed in the singular, which totally makes sense. Having many priorities, you might have heard, everything is priority 1, leads you to lose focus. So, to focus on your goals, set one priority and align the other goals and processes around.
Eliminate
Get rid of everything, which does not lead you towards your goal. There are a lot of good ideas around, though if they don’t add up to target your goal leave them aside or for later. Always keep asking the question: Does this take us/me towards the goal and my priority?
Split your business plan into segments
I’m sure you can divide your plan into segments, like products, markets, customers etc. Then see, which goal belong to which segment.
Also, here less is more. It’s almost impossible to get everything done at the same time.
Modularize your topics and goals
The most powerful way to reduce complexity is to modularize your topics. Does your goals consist of only one module – I’m sure it doesn’t.
For example, when introducing new or converting an existing IT system it is a complex process, but normally subdivided in different modules, which add up into an entire system. So, you should divide a complex process into various sub-categories including clear components for input and output.
Standardization
To standardize is also a powerful and easy way of reducing complexity. You will save a lot of money and time. Don’t invent the wheel new, standardize process, which are repetitive. Standardization does not eliminate creativity. It leaves room for ideas and productivity as it gives you and your team time to get things done.
Combine activities
Another option to reduce complexity is to combine activities within your company. Think “out of the box” to find new ways to combine e.g., services, which are complementary. Create synergies to reduce complexity.
Rearrange e.g., your meeting structure
Sometimes activities do not seem useful anymore or have never been. Meetings for examples, often too many, too long with too little focus. To how many meetings have you been invited lately, where little to no agenda was set for?
An option would be to rearrange the meeting culture and with it the meeting processes starting from the top of your organization cascading it to the lower levels. That will save your organization time, leaving room for more productivity to achieve the goals within your business plan.
Remember activity does not equal productivity.
Automation
To automate is not easy, so I recommend prioritize, eliminate, and standardize before you start with automation.
Do you need support?
Do you need support with your management reports? Let me know and send an email to Cordula.buss@planatoccontrolling.com or leave a message below.
Let's do it!
*
