Keeping things simple might just be the hot
management topic of the last ten years or so. Complexity hamstrings almost all
organisations. Yet there is precious little consensus as to how to achieve
simplicity.
That complexity is a crippling problem is
clear. I work part time for a company that helps companies engage with their
staff. Every client interaction we have tells the same story. People are
stressed, overloaded, struggling to stay above water. The more senior they are,
the worse it gets. No-one likes it, everyone can see it, all can see how
counter-productive it is – yet nothing changes.
Schumpeter in the Economist had another
look at simplicity in his or her column last week. He quoted a few interesting
practices.
First, it is suggested that complexity
needs an occasional bonfire. This makes sense. It is a bit like the clutter
around your house or keeping your files up to date. You can do so much each
day, but it still tends to expand. So every few months you should have a sort
of spring clean.
This is the same with complexity in an
organisation. Every year or so we should make a project to remove the clutter.
Stop some committees. Simplify some approvals. Eliminate some tasks, or even
some jobs. Actively look for things to cut.
This makes sense. I witnessed the same with
reorganisations. If there is not a project to cut out waste every five years
then the organization gets too fat. It is a human nature thing. We are all
ready to get excited about our ideas to grasp new opportunities. That adds to
positions and activities. None of us is so willing to reduce our footprint. Who
knows, the next step might be demotion or redundancy. So, sadly, someone has to
apply the pressure for us, and the best way is for that to happen
organization-wide. For a few months, there is uncertainty and some loss of
focus on growth or client, but at the end of it we have a slimmed down and
fitter company.
Then Schumpeter highlights some smart
practices from individual companies. Most try to tackle the hidden costs of
people’s time. It is very easy to arrange a meeting or to write an e-mail, so
much so that it can seem cost free. But every time we communicate, we impose
the cost of time on the other party or parties.
Everyone complains about receiving too many
e-mails and attending too many meetings. But we could all do more to help
ourselves. In e-mails, the amount received globally has to equal the amount
sent, so on average we send as many as we receive. If we can get into the habit
of sending fewer, we will probably receive fewer.
So I would go even further than the company
quoted by Schumpeter and give people an e-mail budget. It can have its own
currency, let’s call it the clog. Sending a mail costs one clog per recipient. Each
attachment adds one more clog. It is simple, and the server can keep count and
produce automated reports. Then each month, people can be judged against their
budget. The worst performers can be publicized. People can be coached on good
practices if they are persistent offenders.
It is similar with meetings and phone
conferences. In general, I always found that meetings with more than six
attendees achieved very little. So set a maximum, say eight. Make the default
time 30 minutes instead of an hour. Start at five past and finish at five to,
so no-one has an excuse to be late (that they came from their previous meeting
or it overran). Then insist on promptness, pre-reading, clear purpose, minutes,
and all the other well-known good practices. One company even has meetings
standing up, so people don’t get too comfortable. Phone conferences have become
even worse than meetings – they have the same failings but are even easier to
set up.
Schumpeter has good examples, but I believe
he misses the main point. So matter what you do about good practices and spring
cleaning, complexity will still tend to mount. The only antidote is to actually
simplify the business. If a company can reduce the activities it carries out,
then the result is structural simplicity.
The role models in this are many new
companies, like Google and Facebook, who start with simple missions, small
staffs and few activities. It is very hard for established companies to strip
things away. Outsourcing can help, but can also make things worse, if the
result is managing lots of complex external relationships. I am also far from
convinced by the recent strategies of Google and Facebook – they have so much
cash that they are acquiring rabidly, not just overpaying but also condemning
themselves to the same complexity that bedevils others.
In the corporate context, the main
opportunity for many lies in going against the perceived wisdom of integrating
units, especially geographically separated ones. My least productive time at
Shell was spent trying to get companies around Europe to work together. I still
doubt the net benefits, considering IT cost, disruption and work life
sacrifice. Having smaller, autonomous units makes a lot of sense to me in many
situations. Look out for a trend of companies giving power back locally, also
de-mergers and de-listings.
Apart from IT, the big disaster in
integration is the necessity to travel. When people start work, travel is
offered as a benefit, and perhaps for a while it is. As we grow older, it
becomes the opposite. Technology may help in some small ways, such as better
information and IT connectivity, but it also creates new traps, such as the
expectation to maintain e-mail contact 24/7 wherever you are.
I think there is a lesson here in our
personal lives as well. I blogged on this before, but I don’t think I mentioned
travel. I have come to believe that travelling less is one key to simplicity.
It is amazing how often you meet people who
have never been to the main attractions in the cities where they live. Others
seem to be collecting countries and landmarks as if it were a competition for
who can visit the most.
This is all very well in your twenties, but
I think it becomes counter productive later on. As with so many things, we are
lured by our peers and also by marketing campaigns. Every advert for a cruise
will show a relaxed atmosphere and a beautiful view. Of course it does not
mention the cramped cabins, the idle hours or even the effort to get to the
start and end points.
My advice with travel is to seek less and
to find more. Think about cutting out a venue and spending those extra days at
home, especially at the end of a holiday, when you need unwinding time before
going back to work. Instead of jumping in the car again next weekend and
sitting in queue after queue, instead just walk locally or visit that museum
down the road you have never seen, or even just stay at home talking with your
family. Notice what there is around you. You can always find something
wonderful without travelling at all, if your senses are open.
Further, pace travel through your life. By
all means burn the candle at both ends in your twenties. Build in more
relaxation to your schedule in your thirties, especially if you have kids. Young
kids like routine, not long flights and disturbed sleep patterns. By your
forties, go to familiar places and for longer spells. Then, if you have a
retirement bucket list, make sure you start in your fifties, with long,
sweeping holidays, while you are still fit enough to travel freely, and also be
ready to invest a bit more in luxury. Finally, as your body winds down, allow
your schedule to wind down with it. Less is more, and less seeking will result
in more finding.
Simplicity is elusive. Many trends in
modern society work against it, whether the trend is corporate pressure, globalization
or simply enticing travel marketing. Yet simplicity has magnificent benefits.
Others will not help to make our lives simple, we need to counter some of these
trends and fit our own behaviour for our own best interests.
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