Hack:
Hacking VUCA world / Episode 2 : C as...Complexity
Drill down along the C dimension.
Not in the acronym order, but starting with the third one, that we can have a large impact on.
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Complexity is the root cause of lack of time.
For what ?
Understanding, deciding, clogging processes with bureaucracy..
Solutions all belong to the toolbox of simplification.
When decided, transformation can easily wash the loss of agility and the financal losses linked to waste.
This hack is exposing some lessons learned and some innovative approach, with returns on experience.
Complexity is often presented as a silent killer.
It increases the pressure put on the systems and the pressure getting into each different elements as well as the links and joints of the global structure.
Complexity comes with maturity of business offers and growth...part appears are a fair trade off, linked to segmentation (of everything...) and to acquisitions (of newbusiness, new customers, data, technologies, companies....)
So, C as C-Suite issue, as it touches all dimensions of the business shape.
C as a Collective and Co-Operative issue, as it impacts everyone in the day to day business.
It is a natural consequence of the creation of new categories of products, services, flows, trades and tribes entering a scaling up business. Works the same on administration or non profit organization, communities, neuronal networks, you name it.
....while a necessary maturity step is to FACE complexity.
Sub element of Complexity
Metaphor of the C-suite within VUCA
Sebastien Zanello, the artist. Copyright 2017.
Photo FJ Leconte 2017
Choking growth or innovation, slowing down processes or projects, and consuming energies.
To the point where individuals and sub part of organization get paralyzed.
Equals Zero agility, as we may create zero gravity with a rapid fall.
Complexity comes with maturity of business offers and growth...
....while a necessary maturity step is to FACE complexity.
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Complexity is the root cause of many paint points, road blocks, mistake, and above everything : lack of time.
For what ?
Understanding, mastering, deciding, clogging all processes with bureaucratic roadblocks and delays.
Problem becoming : how can we mitigate that risk and balance the collateral damages of growth and the burden of complexity ?
"Keep it simple" being a nice motto, an objective for sure, but not a practical solution per se.
Good news, we are rapidly switching from the times of awareness, "ooh, we are now quite complex, and complicated, and it is dangerous! ".... to action mode.
Academic data are now confirmed with field experience.
Acid test is positive.
Numbers are pretty much aligned with the early days evaluation : entropy, that is to say the increase of complexity or the energy leaks, or some combination ot the two are measured beyond the 10% mark per year.
Corrected from necessary complexity due to growth and extension of playing fields a golden number of 7% seems to be the correct assumption fro anyone starting to touch that field.
Not 100% bureaucracy but the bulk of it fits the definition.
My new assignment for 18 months now. Very addictive domain.
I witness and measure with objectivity that even in places where empowerment is quite effective, especially in so called agile and lean organization, it is not at all entropy and bureaucracy proof.
The root cause of it is in the word "individual".
As long as collective intelligence does not reach a "meta-level", that is to say the ability to change the decision-making processes, cheap communication costs do not solve the issue of decision speed and transparency.
These last two elements are the only factors of enthalpy, that is the capacity to bond and link all kinds of relations drving the global effectiveness and sustainability of any system.
Because most remain to the basic level, companies keep adding staff and control mean.
Wrong pick and high cost of re-insurance.
(unknown source so sorry for the credit about this very illustrating and inspiring picture...)
So the first step toward the solution is to face the puzzling multiple cubes of complexity and think about the way to unbuild it or disentangle the web.
The solution is a change plan driving a transformation requiring muscles, heart and a collective mind.
Muscles are methods and tools such as Lean, six sigma, velocity, agilty and innovative problem solving processes.
Not the most difficult part as skills or knowledge are available and well documented. So no need to describe at that stage.
Heart and mind are the main focus to make it a real transformation leap and DNA addition.
Lessons learned show clearly that the succes factor and winning tactical choice is to simplify first all the tools in order to get a maximum of individuals capable of driving simplification on their own, by groups.
As opposed to few experts.Experts are of tremendous help but are no bottlenecks into that tactical scheme and game plan.
C dimension is the easiest (or the less difficult) entry door to tackle the VUCA and get visible impact on daylife at work.
Complexity can be measured precisely and reduced or eliminated in thousands of elements of the business value chain of activities.
We will refer to an exisiting referential by APQC counting over 1600 elements.
Results are made of leadership decisions and technical fixes on tasks, processes, governance.
Corrected from necessary complexity due to growth and extension of playing fields a golden nuber of 7% seems to be the correct assumption for anyone starting to touch that field.
Not 100% bureaucracy but the bulk of it fits the definition.
My new assignment for 18 months now. Very addictive domain.
I witness and measure with objectivity that even in places where empowerment is quite effective, especially in so called agile and lean organization, it is not at all entropy and bureaucracy proof.
Quick wins ahead despite the headwinds speeding spots.
(Sounds like a Stand up showman drilling exercise, no?)
Solutions all belong to the toolbox of simplification.
When decided, transformation can easily wash the loss of agility and the financal losses linked to waste.
This hack is exposing some lessons learned and some innovative approach, partly implemented, with returns on experience, while other elements are designed and currently under reality check.
Complexity, Sebastien Zanello. Copyright 2017.
Photo FJ Leconte 2017
Challenges
1. Understanding : takes longer time to business models, to get information about who is doing what, or why the company is acting on multiple theatre of operations, with more than one channel and one brand, but portfolios and multi media.
Therefore challenge is to speed up onboarding, shortcut access to knowledge and networking.
2.Mastering : same as above but....one step beyond as it is about applying some elements of what took a while to understand, then get experience about it, and not in one field or about a brand, channel, techno you name it, but likely a couple or more to answer or face and deliver services to segmented clients.
Challenge is faster experience curve, and multiply rapid exposure
Customer services, front line individuals or call center pools and after sale or repair crews know the feeling and hard way.
3.Deciding : unless rising up the level of risk decision comes after some understanding, preferably at least a partial mastery (oneself or teams). There are more options as a direct consequence of the multiple data and bodies in the equation.
Challenge is to wait for the longer understanding and mastering phases without missing the train.Thta is to say market and sales, volumes, premium to first and winner takes all business situations.
We will see in next episode that is also combines with the A from Ambiguity...another dimension of the challenge.
4.Clogging : all workflows, processes with bureaucratic roadblocks and delays.
Challenge is to work against denial, then to put the right people together and to face the numerous small cubes of complexity.
A cumbersome but rewarding process.
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Complexity is the root cause of lack of time.
For what ?
Understanding, mastering, deciding, clogging all processes with bureaucratic roadblocks and delays.
Complexity is a silent killer for an organization one can read.
Facts give evidence about how it piles up and sticks on decision making processes that are the arterias ruling the (work) flows into the whole organic system.It is becoming a thick and inefficient irrigation.
Muddy waters with impact on the cash and inventories circulation.
It increases lead time and processes times with frictions, pain points and "W as Waiting", one of the 8 categories of waste.
We can give many more details about the complexity part in further drilling hacks.
We hope it is already a lot of food for thoughts and inspiration for your own first step to wash some of the entropy slowing down your organization.
Next episode will link and bridge to the Ambiguity elements....stay tuned.
Episode 3 and 4 are now on line...if you are interested in drilling further down....
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