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New tools for managing complexity
Does your organization manage complexity by making things more complicated? If so, you are not alone.
According to The Boston Consulting Group’s fascinating Complexity Index, business complexity has increased sixfold during the past sixty years. And, all the while, organizational complicatedness—that is, the number of structures, processes, committees, decision-making forums, and systems—has increased by a whopping factor of thirty-five. In their attempt to respond to the increasingly complex performance requirements they face, company leaders have created an organizational labyrinth that makes it more and more difficult to improve productivity and to pursue innovation. It also disengages and demotivates the workforce.
Clearly it’s time for leaders to stop trying to manage complexity with their traditional tools and instead better leverage employees' intelligence. This book shows you how and explains the implications for designing and leading organizations.
The way to manage complexity, the authors argue, is neither with the hard solutions of another era nor with the soft solutions—such as team building and feel-good “people initiatives”—that often follow in their wake. Based on social sciences (notably economics, game theory, and organizational sociology) and The Boston Consulting Group’s work with more than five hundred companies in more than forty countries and in various industries, authors Yves Morieux and Peter Tollman recommend six simple rules to manage complexity without getting complicated.
Showing why the rules work and how to put them into practice, Morieux and Tollman give managers a much-needed tool to reinvigorate people in the face of seemingly endless complexity. Included are detailed examples from companies that have achieved a multiplicative effect on performance by using them.
It’s time to manage complexity better. Employ these six simple rules to foster autonomy and cooperation and to effectively handle business complexity. As a result, you will improve productivity, innovate more, reengage your workforce, and seize opportunities to create competitive advantage.
- Sales Rank: #145530 in Books
- Published on: 2014-04-01
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x 5.00" w x 1.00" l, 1.01 pounds
- Binding: Hardcover
- 240 pages
Review
“Six Simple Rules should be mandatory reading for anyone and everyone charged with a corporate management responsibility…"Articulate, practical, insightful, informed and informative… exceptionally well written, organized, presented, and thoroughly 'user friendly'” – Midwest Book Review
“Innovative and instructive, Six Simple Rules merits a place on the bookshelves of all those who aspire to give a new meaning to their management.” — Business Digest (France)
“… an interesting book that prescribes some practical solutions to the problems often seen in organisations.” — Irish Times
“Six Simple Rules is a management book, but it also a social science book, an important asset because it will assist you in both understanding the people in your organization and what motivates and inspires them.” — 800 CEO READ
“an exceedingly interesting book on a very hot topic!” — Taking Care of Biz Blog (takingcareofbiz.org)
ADVANCE PRAISE for Six Simple Rules:
Lamberto Andreotti, CEO, Bristol-Myers Squibb Company—
“Applying the rules of this book will help those looking to increase cooperation while also removing complicatedness in their organizations.”
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited—
“We do not want best practices; they are not good enough for us. We want the next practices, and that is what the six simple rules are about.”
Erhard Friedberg, Professor DDr, h.c. emeritus, Sciences Po, Paris; Professor and Senior Advisor, School of Government and Public Policy (SGPP-Indonesia)—
“This book will prove seminal. It shows the essential contribution that good empirical social sciences can bring to management, how social sciences can be used to seriously analyze and change what people do at work, and the amazing results you can then produce.”
J�rgen Vig Knudstorp, CEO, LEGO Group—
“What the authors call ‘complicatedness’ is the plague of modern corporations. To simplify is easy, but the cure may be even worse than the disease. What matters is to simplify without ignoring the new complexity of business. You can do it, thanks to the simple rules.”
About the Author
Yves Morieux is a senior partner and managing director in the Washington, DC, office of The Boston Consulting Group (BCG). He is a BCG Fellow and director of the BCG Institute for Organization.
Peter Tollman is a senior partner and managing director in BCG’s Boston office. He leads BCG's People and Organization practice in North America.
Most helpful customer reviews
46 of 48 people found the following review helpful.
An excellent, well-written treatise on increasing organizational effectiveness by decreasing organizational complexity
By L. M. Walker
Bravo to Yves Morieux and Peter Tollman for proposing an elegant, powerful approach to increasing organizational effectiveness by decreasing organizational complexity.
The thesis from Morieux and Tollman is that the ideal solution is not in building ever increasingly complex organizational charts, committees, processes, KPIs, metrics, etc, but rather to simplify in the 6 following manners:
1. Understand what others do. What is their real work? Look beyond the boxes and the job descriptions to understand the real content of what people do.
2. Reinforce Integrators. Remove layers, as with too many layers, people are too far removed from the action. Less rules to increase discretionary power to integrators.
3. Increase the total quantity of power.
4. Increase the shadow of the future. Create feedback loops that provide the impact of future outcomes to present day decisions. Create feedback loops that expose people to the consequences of their actions.
5. Increase reciprocity. Remove buffers that make us self-sufficient. I hold you by the nose and you hold me by the ear. Remove the 2nd TV at work. Excess resources only create dysfunctional self-sufficiency.
6. Reward those who cooperate. Blame those who do not cooperate. "Blaming is not for failure, it is in failing to help or to ask for help," (Lego CEO, Jorgen Vig Knodstorp)
My personal favorite is on the creation of feedback loops that expose people to the consequences of their actions. Early in my career, I was leading an R&D pharmaceutical process development laboratory that was co-located with commercial manufacturing. The director of the R&D organization gave each of his R&D scientists post-launch responsibilities for the processes that they had developed. As a consequence of this co-location and the reinforcement created by this feedback loop, the R&D design teams developed very pragmatic, rugged and reliable manufacturing processes.
This book is destined to become a classic.
1 of 1 people found the following review helpful.
Or "Some tools to get people to cooperate"
By DrDWilliams
Six Simple Rules provides managers with an alternative to the two management approaches (hard, metric driven; and soft, mind-set driven) that the authors suggest have overcomplicated, and thus diminished the ability of organizations to achieve their full potential.
The underlying point of this analysis is: the biggest problem faced by organizations is that people in the organization don't do their best work and don't cooperate with one another to achieve the best results for the organization.
Managers and leaders have been trapped by management theories that abstract employees into mechanistic parts or strive to grasp organizational zeitgeist (intellectualizing collective behaviors). The solution proposed is for managers to get out of the office (where they can safely intellectualize about how to solve abstract problems), engage with employees, figure out what they actually do, and empower them to do their work in ways that require them to cooperate with one another for the good of the organization.
The six rules are illustrated with case studies of anonymized corporations (service, transportation and production) with which the authors consulted.
There are sidebars that synthesize the key points of the rules. This is more effective in the print than the Kindle version. In the Kindle version the sidebar is plunked into the middle of the chapter. I think publishers with an eye toward digital content need to spend a bit more time thinking about digital layout on the kindle. Cooperation between publishers and Amazon would be beneficial for consumers. Sadly there is no way to apply pain points since digital books are generally not returned if they have some value. In this case, the "sidebars" aren't terribly distracting, but they'd perhaps be better placed in a consolidated appendix or maybe between chapters.
There also seemed to be a gap between the abstracted rule and the case study, leaving me wondering how I would go apply the rule inside my kind of organization (education sector). This was in part remedied in the Conclusion, where the authors laid out a process that helps one envision implementing a conversion to a six rules approach.
Overall an interesting and thought provoking read.
0 of 0 people found the following review helpful.
6 simple rules to get a more agile organisation.
By Amazon Customer
Very good challenging book if you want to get rid of some outdated practices of management like kpi/scorecards/reporting lines/... The efficiency is in cooperation, in the interplay, in the empowerement of the people at the frontline. All starts with a good understanding of what people really do, not what they don't. See also 12' Ted vid�o on the subject.
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