Beckway Insights: Complexity in a Challenging Global Economy
In the best of times, the balance between providing a diverse set of products and services, and managing costs is precarious. In an era of economic uncertainty in nearly every market, the potential negative impact is much more visible. The biggest question becomes how to identify what to address?
Complexity is a neutral word: neither good nor bad in and of itself; however, complexity in product lines, processes, systems, etc., are either good (adding value) or bad (destroying value) – no single “point” of complexity is neutral in business. Determining where value-destroying complexity lies within the value chain allows the ability to create fundamental changes that will resonate from the customers to the bottom line.
Identification is not simple; however, through proven statistical, analytical, and empirical studies can pinpoint areas of concern to which proper improvements can make significant impact. Companies should always be ready to assess and evaluate with a mindset of complexity reduction especially when facing market challenges. Managing the areas and focus of complexity in the business is essential to the long-term health of the company.