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« The Magic of Accountability | Main | There is no third way. »
Tuesday
Sep132011

The Efficiency Trap

Most managers strive for operational efficiency. Efficient processes cost less, generate better results, or both.

However, many attempts to achieve higher efficiency end up with contrary outcomes: 

More chaos, uncertainty, de-motivation, and higher costs. Why is that? Because one of the simplest laws is often ignored:

Higher efficiency is not possible in complexity!

If you want to become more efficient, you have to simplify first.

While complexity grows on its own, simplicity demands hard work (I guess Apple spends more time on simplifying its devices and business model than on developing additional technical features).

Tip: Set up a "simplification budget." Invest in simplification constantly. Higher efficiency will be easier to achieve.

The good news: There are many causes for high complexity that do not cost a cent to reduce, e.g. unmade decisions by leaders, accepted exceptions to made decisions, any product feature that does not add clear value to your clients, or missing discipline in execution.

Important: Start to improve now. Contact us if you need help. Remember, procrastination is another cause for complexity and low efficiency.

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This post is from our Friday noon memo #96. Interested in regular updates? Sign up here.
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