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How do companies create value and achieve competitive advantage in an age of great complexity? This is a question we constantly ask ourselves as we go about our work of helping chief executives and their leadership teams build successful businesses.
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Smart Simplicity Yves Morieux
Stockholm – November 21st, 2013
1 Healthcare Leadership Academy-Smart Simplicity-21Nov13-YM-kk-Was.pptx
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Organizing for competitive advantage
Strategy, success factors Structures, Processes...
Growth
Current performance
Functional Expertise
Maintain coherence across products
Efficiency
Innovation
Geography B
Geography A
Geography...
Geography C
Global scale
Local responsi- veness
Finance
HR
IT
Finance HR
IT
...
Speed
Reliability
Simplicity
Choice ...
Area
1
Area
2
Shared services develop synergies
Custo- mization
Standar- dization
Source: Y. Morieux (2011), 'To Boost Productivity, Try Smart Simplicity', BCG.Perspectives, July. Available at: https://www.bcgperspectives.com/content/podcasts/strategic_planning_people_management_human_resources_morieux_yves_key_to_boosting_productivity/
2 Healthcare Leadership Academy-Smart Simplicity-21Nov13-YM-kk-Was.pptx
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Leadership
• Managerial value-added
+
+
Cooperation
• Each one's behavior increases the effectiveness of others
+ + Engagement
• Value-adding execution
+
Beyond the skeleton, need the nervous system
Source: Y. Morieux (2011), 'Management: a Sociological Perspective'. In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization.
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Effect on performance
Resources
Cooperation
Over-consumption of resources • Time, delays,
equipment, inventories, stock, waste, mistakes, accidents, teams, extra pressure on the individual...
Freeing resources for value-adding activities
Source: Y. Morieux (2011), 'Management: a Sociological Perspective'. In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization.
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Expand the shadow of the future • Duration • Frequency • Inversion
Smart rules
Source: Y. Morieux (2011), 'Smart Rules: Six Ways to Get People to Solve Problems Without You', Harvard Business Review, volume 89, n°9, September: pp78-86
Improve knowledge of others • Their work, strengths • Management to re-
cognize performance
Reinforce integrators • Removing rules • Refusing escalation • Delayering
Increase total quantity of power • To give all actors
enough cards to play a more collective game
Enlarge the domain of reciprocity • Rich objectives • Cut resources • No internal monopoly
Modify the pay-off matrix • Make those who
don't cooperate bear the cost
Explanations available at: http://www.youtube.com/watch?v=irRQOWAaABk
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Advantage by simplifying the organization to better manage business complexity
Less structures No bureaucracy More capabilities
Engagement
Leader- ship
+
+
Cooperation + +
+
Out- source Pool
IT-infrastructure
Elimi- nate
Stan- dardize
Source: BCG Navigator, available at: http://www.bcg.com/expertise_impact/BCG_fellows/organization/yves_morieux.aspx
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Forthcoming book: Six Simple Rules – How to Manage Complexity Without Getting Complicated, Harvard Business Review Press Available at: http://www.amazon.com/Six-Simple-Rules-Complexity-Complicated/dp/1422190552
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