Simplicity

It's a theme for 2021. Companies want to drive simplicity, and many CEOs we are talking to consider this to be a key area of focus. Let’s explore why…

As companies grow, shrink and change, they find themselves more complex. But where does it come from? Ultimately complexity is driven by core business functions: process, policy, systems, operating models, and is fuelled further by unclear decision-making. 

Complexity costs companies’ both money and time – and probably more than you would think. On average, complexity costs companies 23% of their cost base. 

So, given its impact, it makes sense that a key area of focus is to reduce complexity. But how do companies do this successfully?

“Simplicity (noun) is defined as “the quality or condition of being easy to understand or do.” And “the quality or condition of being plain or uncomplicated in form or design.””

The five key steps to reduce complexity in your business:

1. Ask senior leaders to write a list of roadblocks in the organisation

2. Ask staff to ask it they could change one process in the company what would it be 

3. Identity themes (4-5) that would reduce complexity 

4. Identify measures of complexity for 4-5 items and targets to drive simplicity 

5. Start a program of work endorsed by the CEO around driving changes in 4/5 items and celebrate success 

It helps to put things in context, so here are some key areas where we have seen improved simplicity that has directly created a financial benefit:

• Remove unprofitable customers - reprice or remove 

• Remove Unprofitable products - stop selling 

• Remove number products in offering (do we neatly need 214 staplers?)

• Clear delegations driving improved and timely decision making 

• Bill / billing process 

Simplicity is an overused term and not many companies do this well. Ask yourself, is it time to spring clean the cupboards in your business? To remove the clutter, simplify the way you work and operate in order to drive a better customer experience and improved financial outcomes…

Remember the secret is to take a non-emotive view of things - no sacred cows!!

At Whiteark we love helping companies simplify through the 5 Step approach. The impact is beneficial for customers, employees and shareholders alike. 

Download our free guide below to help you analyse your business processes and get started…

James Ciuffetelli and Jo Hands have practical experience in helping companies implement change around simplification, and we have seen the benefits this provided first hand. Get in touch for a no obligation conversation about how you can strategically simplify your business.

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Need support in your organisation? Reach out.

Whiteark is not your average consulting firm, we have first-hand experience in delivering transformation programs for private equity and other organisations with a focus on people just as much as financial outcomes.

We understand that execution is the hardest part, and so we roll our sleeves up and work with you to ensure we can deliver the required outcomes for the business. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au

Article by Jo Hands, Co-Founder Whiteark