Insight 08 January 2025
Beyond Complexity
A Deeper Look at Organisational Simplification
As the demand to simplify organisations and bureaucracies gains momentum, here are a few implementation insights from some of our recent work.
Mapping Decision Networks: A Practical Approach
The most effective method we've developed for mapping decision flows combines quantitative and qualitative elements. Organisations first need to identify their top 10 recurring strategic and operational decisions. For each decision, we trace both the formal and informal paths through the organisation. This involves documenting not just the official approval chain but also the 'shadow' consultation process, which often creates hidden complexity.
A recent client engagement revealed that while their formal approval process involved five steps, the actual decision path included 13 unofficial consultation points. Organisations can begin to rationalise their decision architecture by making these invisible networks visible.
Mapping Decision Networks: A Practical Approach
The most effective method we've developed for mapping decision flows combines quantitative and qualitative elements. Organisations first need to identify their top 10 recurring strategic and operational decisions. For each decision, we trace both the formal and informal paths through the organisation. This involves documenting not just the official approval chain but also the 'shadow' consultation process, which often creates hidden complexity.
A recent client engagement revealed that while their formal approval process involved five steps, the actual decision path included 13 unofficial consultation points. Organisations can begin to rationalise their decision architecture by making these invisible networks visible.
Industry-Specific Complexity Patterns
Our work across sectors has revealed fascinating variations in how complexity manifests. In financial services, complexity typically clusters around risk management and compliance processes. Manufacturing organisations often struggle with operational complexity in their supply chains and quality control systems. Technology companies frequently battle with product development complexity and investment prioritisation.
However, most interesting is the common patterns with the more effective organisations tend to push decisions down to the lowest competent level, maintain clear decision rights, and invest heavily in developing their managers' judgment capabilities rather than creating elaborate control systems.
Industry-Specific Complexity Patterns
Our work across sectors has revealed fascinating variations in how complexity manifests. In financial services, complexity typically clusters around risk management and compliance processes. Manufacturing organisations often struggle with operational complexity in their supply chains and quality control systems. Technology companies frequently battle with product development complexity and investment prioritisation.
However, most interesting is the common patterns with the more effective organisations tend to push decisions down to the lowest competent level, maintain clear decision rights, and invest heavily in developing their managers' judgment capabilities rather than creating elaborate control systems.
The Human Factor: Impact on Engagement and Performance
Perhaps the most compelling evidence for simplification comes from its impact the work experience with our ongoing work with organisations showing a strong linkage between reduced complexity and employee engagement scores, particularly in areas of autonomy and purpose.
The key driver wasn't just reduced workload – the sense of empowerment came from more apparent decision rights and reduced bureaucracy. People reported feeling more connected to the organisation's purpose when they spent less time navigating internal complexity and more time making decisions that were in alignment with shared aims.
The Human Factor: Impact on Engagement and Performance
Perhaps the most compelling evidence for simplification comes from its impact the work experience with our ongoing work with organisations showing a strong linkage between reduced complexity and employee engagement scores, particularly in areas of autonomy and purpose.
The key driver wasn't just reduced workload – the sense of empowerment came from more apparent decision rights and reduced bureaucracy. People reported feeling more connected to the organisation's purpose when they spent less time navigating internal complexity and more time making decisions that were in alignment with shared aims.
The Path Forward
The challenge for leaders is to move beyond recognising complexity as a problem and to proactively build simplification capabilities. This involves:
-
Investing in decision-mapping tools and expertise
-
Understanding industry-specific complexity drivers
-
Measuring and monitoring the human impact of organisational complexity
-
Modernising leadership capabilities enable both adaptive and administrative leadership modes
Most importantly, it requires a shift in mindset from seeing complexity as an inevitable byproduct of growth to viewing simplification as a core organisational capability.
The Path Forward
The challenge for leaders is to move beyond recognising complexity as a problem and to proactively build simplification capabilities. This involves:
- Investing in decision-mapping tools and expertise
- Understanding industry-specific complexity drivers
- Measuring and monitoring the human impact of organisational complexity
- Modernising leadership capabilities enable both adaptive and administrative leadership modes
Most importantly, it requires a shift in mindset from seeing complexity as an inevitable byproduct of growth to viewing simplification as a core organisational capability.
Further Reading
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