How Complexity Reduction works:
Complexity Reduction requires managers to:
Understand the sources of complexity and examine trade-offs between operations and variety or customization for customers
Identify opportunities to simplify products, organization structures, business processes and information systems to save costs while strengthening core capabilities and increasing the focus on customers
Take steps to stem the return of complexity by reexamining the hurdle rates for new products and other expansion activities
Simplify decision making by clarifying roles and processes