Simple Is Not Always Easy Either

I received some emails in response to my last post, about a Mercer Management Consulting article on complexity. I said that when it comes to weeding out unprofitable customers, the problem is not necessarily complexity, but the tools you use to manage complexity (or lack thereof).

There is an 80/20 rule that applies to almost everything in life

One reader suggested I take a look at a BCG article titled "As Simple as Possible" by Kenneth Keverian, Vikas Taneja, and Bob Victor. The article spcifically talks about what it calls technology hubris: "Too many companies have the naive belief that IT will 'automate away' the complexity problem.'" I agree.

There is an 80/20 rule that applies to almost everything in life, be it customers, contract terms, SKUs, discount levels or anything else. You should identify the things that make the big impact in your business and get rid of the rest -- or at least figure out how to make them not occupy a lot of expensive management attention. The BCG article does a great job of actually addressing the issue of how to reduce (or prevent) harmful complexity. That's different, however, than saying that companies should eliminate all complexity, or that they should not invest in the tools that help manage what complexity actually adds significant value.