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Conquering Complexity in Your Business: How Wal-Mart, Toyota, and Other Top Companies Are Breaking Through the Ceiling on Profits and Growth

by: Michael L. George, Stephen A. Wilson
en | McGraw-Hill

0071435085  9780071435086  9780071454964 

Conquering Complexity in Your Business: How Wal-Mart, Toyota, and Other Top Companies Are Breaking Through the Ceiling on Profits and Growth
By Michael L. George, Stephen A. Wilson




Product Description:

Conquering the complexity in products and services can generate larger contributions to profits and growth than nearly any other business strategy

Here's a guarantee: Somewhere in your business, there is too much complexity. You may also be losing out by having too little complexity where it counts - in the products, services and options you offer to customers. Either way, the impact of complexity is enormous in terms of lost profit and missed growth opportunities.

Conquering Complexity in Your Business shows how to break through the ceiling on profits and growth by implementing the three rules for conquering complexity:

You'll find methods and tools you need to:

Identify the offering and process complexity in your business Quantify the impact of that complexity Decide which complexity you want to keep and which to eliminate Select specific approaches to eliminate different kinds of complexity This knowledge will significantly improve your ability to grow profit, revenue, and shareholder value.Summary: It's an interesting approach for identifying opportunitiesRating: 3As the Six Sigma and Lean practice areas mature, the challenge is to discover new ways to apply these methods. Michael George proposes that an analysis that looks at complexity of a business is a way to identify areas of opportunity for improvement. The method is based on some patented equations that attempt to put numerical values on a company's complexity. When the complexity is calculated, and is found to be out of balance with the company's strategic direction, then action can be taken using Lean Six Sigma to reduce (or increase) complexity. This book proposes methods that cross conventional organizational boundaries, so the mission and the methods must be adopted by senior people who can see the benefits of crossing the boundaries. To make a difference managing complexity, these senior people must have the people and power to calculate new business measures and deploy teams that may not align with current organizations and departments. The method seems sound, although the case studies are few. Anecdotes fill in the gap between idea and practice, and the anecdotes seem forced or coincidental (for example, Wal-Mart and Toyota can be used to justify nearly every business improvement method, even if neither of these companies goes on record as having used the method). As usual in the improvement business, it's a matter of cost versus benefits. It seems to be a low risk analysis method that can reveal a potentially high risk, but high reward, payback. Since the equations are patented, presumably the only way that one can actually try this method is to contact (and hire?) Mr. George's consulting company.Summary: When Less Is MoreRating: 5This is an amazingly revealing book about the dangers of complexity that is not consciously managed. And just what does managing comlexity entail? I the authors' words, it means - Eliminating complexity that customers will not pay for - Exploiting the complexity customers will pay for, and - Minimizing the cost of the complexity you offer In part 1 the case is made for conquering complexity in your business' portfolio (number of offerings) and processes (number of ways of doing the same thing). Part 2 develops the conceptual framework for measuring and managing complexity. In part 3, you are shown how to apply these concepts to the elimination, exploitation and reducing the costs of complexity. Lastly, part 4 shows how to create an organisational culture that supports complexity management, conquer the complexity in your value chain and even apply the principles in mergers and acquisitions.Summary: Insightful Business AnalysisRating: 5This book, like the others in the series by Mike George (Fast Innovation, Lean Six Sigma) is right on target. The examples clearly show how complexity clutters business operations, products and decision making, thus reducing economic performance and shareholder value. The rigor (and mathematics)used to support and analyze the assertions is insightful and reinforces what is intuitively obvious when you understand their thesis. This is an important book for executives that would proabably be much more widely embraced if not for the math involved. Pity, the Japanese and others will pay attention.Summary: Compelling Business Case for Conquering ComplexityRating: 5I found Conquering Complexity provides an excellent framework and lays out a compelling business case for why and how you should focus on complexity. This is the best guide out there in terms of a comprehensive approach to identify, quantify and attack complexity. The book is a very practical and pragmatic read with a wealth of real world examples and illustrations that reinforce concepts layed out in a logical sequence. In researching a number of books though there are many that contain bits and pieces of concepts that relate to complexity, I have found that none of them tackle the concept of complexity as a discipline that must be mastered as Conquering Complexity does. I found it to be a refreshing, compelling book that you can follow step by step to create a complexity focus and agenda in your organization. There is tremendous power in purchasing the book for co-workers or Managers to help raise their complexity IQ and see what is possible. I continue to learn from the book as I refer back to it frequently. I would highly recommend it to anyone or any organization that is looking to continuously improve or to create greater value. I really found the sections on Product/Service proliferation to be right on, and a wealth of information. - RodneySummary: Practical way to determine complexityRating: 4Businesses talk about reducing complexity but have trouble determining it and simplifying it. The books provides a roadmap and technique that organizations can use to identify the bad compelxities that customers will not pay for. The book goes further and identifies possible solutions with a plethora of real life examples that make the theory easy to understand and apply