Strategy = Execution
The 10 of Simplification
The 10 of Simplification
- Distinguish and assess the maximum improvement potential of setting a target in cost reduction and productivity improvement. As evident as it may sound, the latter often acts as a hindrance to the former within organizations.
- Analyze the maximum improvement potential of simplification. In variants. What could be possible? Empirical fact: results, often in the short term, include: less coordination burden due to a main structure better aligned with the main flows of work, 15 – 33% more simplicity, fewer forms of consultation and time, maximum autonomy.
- First focus on simplification of ‘the big three’: processes, structure and control, and the change portfolio. We have a simplification model with proven checks and best practices. In this model, we simplify: (1) products and services, (2) processes, (3) structure and control, (4) culture, (5) resources. And on the change side, (6) the change portfolio and (7) (Agile) project approaches. Empirical fact: there is a lot of simplification gain to be achieved especially within;
- (2) processes: eliminate unnecessary process steps, automate repetitive routine tasks, standardize. Process efficiency and effectiveness gains of 15 – 35%. Gather information right the first time and at the source (classic business process redesign principles). Do not waste time mapping process models, use proven existing ones. Like this: S=E Annex 9
- (3) structure and control: streamline and recalibrate; mandates, escalations, forms of consultation (reductions of 30 – 50% in time and number), information & reporting (25 – 50% in quantity and frequencies)
- (6) the change portfolio: eliminate 10% zombie projects, 33% are not change projects but just run-work, 33% have overlapping scope, assignment, and claim on staffing.
- Why is it often so readily available? There is always something added and rarely anything taken away, streamline and ‘de-fat’. It creates oxygen in the organization and releases resources. See also the building block portfolio management from the Strategy = Execution method: building block 2
- Distinguish and assess the maximum improvement potential of setting a target in cost reduction and productivity improvement. As evident as it may sound, the latter often acts as a hindrance to the former within organizations. Analyze the maximum improvement potential in simplification. In variants. What could be possible? Showcase the improvement potential in variants: maximum, medium, and minimum. So that thoughtful choices are possible and the organization is not ‘broken’ and damage is not incurred to the conditions for growth and innovation. Use proven simplification principles as a reference framework and tool. See the table of frequently used simplification principles.
- Set a target in simplification. And allocate it over time. Work as target-setting as possible. This type of issue is only realized when approached with clear and as simple as possible target-setting.
- Establish a strong connection with HR. HR may face the greatest challenges of organizations: how do I find the right people? How do I retain and motivate them? How do I develop them? How do I set up talent management? One of the main reasons why employees and professionals are dissatisfied and leave are complex organizations and processes. There is a direct positive correlation between simplification and HR.
- Break the interventions down into manageable chunks. Usually, the analyses lead to “quick wins” that can be implemented immediately and show savings quickly. The larger ‘breakthrough’, including the necessary adjustments in the organization, is often realized within 3/6/9 months.
- Pay above-average attention to ownership and communication. See the building blocks from the Strategy = Execution method: building block 3, building block 4,
- Make simplification a periodic measure. Approach: this proposition from Turner’s services is also called ‘The MOT’. The periodic checking and pruning of accumulated complexity. Empirical fact: every year or every two years is a good frequency.
- Set up benefit management and secure the benefits. See the building blocks from the Strategy = Execution method: building block 9, building block 13
Apply the Strategy = Execution method for the execution of the chosen simplification measures.
Users of this 10 also often use: the 10 of Lean, the 10 of cost and productivity issues, and the 10 of synergy.
Table: frequently used simplification principles:
| Area | Simplification principle | Manifestation | Possible question | Simplification effect of principle | |
| 1 | Work | Focus on core business (outsourcing) | Outsourcing all non-core-businesses | What is the added value of a specific task / process? | Less coordination needed for non-value adding processes |
| 2 | Work | Reducing the number of non-value adding processes | Non-value adding processes are eliminated or outsourced | What is the added value of a specific task / process? | Less coordination needed for non-value adding processes |
| 3 | Work | Independency in work | Different tasks are independent of each other, reduce waiting time for other processes | Which processes have waiting time for other processes? | Less coordination and planning needed; processes work independent |
| 4 | Work | Standardization (processes, products, working methods, packaging) | Standardization (processes, products, working methods, packaging) | Can this process / product / etc. be standardized? Is this specialty needed? Are processes needed that only serve 10 to 20% of our business? How can this process be standardized? | Less variety in processes / products / etc., less coordination needed Less coordination needed for specialties, less production time needed for specialties |
| 5 | Work | Modular working (processes, products, etc.) | Using the same modules in different processes, products. Re-using of processes and product development. | Can we re-use parts of other processes / products? | Less variety in processes / products / etc., less coordination needed |
| 6 | Formal Organization – organization and management | Responsibilities and ownership at a lower level in the organization (empowerment) | Unit-management / Self-management of teams | Can this responsibility be given to a lower level in the organization? | Less management layers are needed, less communication and coordination |
| 7 | Formal Organization – organization and management | Organizing principles based on primary business characteristic | Organizing by products, or accounts, etc. | What is the primary business principle and are we organized by it? | Reduces the need for coordination and communication |
| 8 | Formal Organization – organization and management | Centralization of specializations | Centralizing of specialized staff | Is it more efficient to organize this staff at central level for all units? | Less people needed for this staff; knowledge easier maintained |
| 9 | Formal Organization – organization and management | Integral management | Line management is responsible for all management topics, staff can be minimized | Does this task really need to be performed by staff? Can this task be performed by a line manager instead of a staff employee? | Less staff and less coordination between staff and line management. |
| 10 | Formal Organization – organization and management | Reduction of hierarchical levels | Reducing of the number of management levels, the span of control will increase | What is the added value of a management layer? | Less managers and less coordination and communication between managers |
| 11 | Formal Organization – organization and management | Ad-hoc work in project groups | Onetime events and ad-hoc work is organized in project groups (not a formal part of the organization structure) | Is this task a onetime event or is it a structural task? Can it be better performed in a project group? | Less disruption in line activities and less coordination in line activities. Coordination of projects are more complex, and jobs will be less rich |
| 12 | Formal Organization – organization and management | Working with (self-management) teams | Organizing by teams, this reduces the management capacity hat’s needed | Can this responsibility be given to a team? | Less management layers are needed, less communication and coordination |
| 13 | Formal Organization – organization and management | Minimizing the need for coordination | Responsibilities are split in such way, that a minimum of coordination is needed between teams | Can we divide the tasks in a different way, so coordination and communication aren’t needed? | Less time is spent on coordination, number of faults reduces, and more time is left for the core of the work |
| 14 | Formal Organization – organization and management | Minimizing the need for communication / information | Tasks are split in such way, that a minimum of communication and information sharing is needed between teams | Can we divide the tasks in a different way, so communication and information sharing aren’t needed? | Less time is spent on coordination and communication, number of faults reduces, and more time is left for the core of the work |
| 15 | Formal Organization – organization and management | Combining of double tasks / jobs | Grouping the (staff) jobs that are double in the organization | Which jobs are executed at different places and is this needed? | Less people needed for this staff, knowledge easier maintained, less coordination needed between BU’s |
| 16 | Formal Organization – organization and management | Clear performance management | Managers know the performance with simple measures (don’t make it too complex) | Is this performance indicator or control measure needed? Can this performance indicator or control measure less complex? | Less time spent on producing management reports and on reading management reports |
| 17 | Formal Organization – organization and management | Reducing the level of detail in information management | Only supply the really needed information, do not give too much detail information if not needed | Is this information really needed, can it be less complex? | Less time spent on producing management reports and on reading management reports |
| 18 | Formal Organization – organization and management | Span of control aligned with the role of manager | The span of control must be aligned with the role of the manager | Is the span of control large enough for this manager and his role? | Less managers needed |
| 19 | Formal Organization – organization and management | Unity in management | An employee has only one manager that is responsible for the hierarchical, functional end operational management | Has this employee more than one manager? | Less coordination and communication needed with employee and other managers |
| 20 | Formal Organization – organization and management | Minimizing needed contact points | An employee has a minimum number of contacts for operational and management information | Can the number of contact-points for this employee be reduced? | Less coordination and communication needed |
| 21 | Formal Organization – organization and management | Executing a process from trigger to result within one unit Minimizing transfer points | One unit executes all tasks needed to bring a trigger to a result, no coordination is needed with other units | Can this task be performed within one responsibility area? | Coordination and communication during process is not needed |
| 22 | Formal Organization – organization and management | One time right, control isn’t needed | Control tasks can be eliminated | Is this non-value adding control task needed? | Less tasks to perform, more time for the real business |
| 23 | Formal Organization – organization and management | Combining executing and managing of processes | An employee is executing the task and also planning, managing and controlling the task | Can the employee manage the process itself? | Less coordination and communication needed |
| 24 | Formal Organization – organization and management | Minimum size of a unit | Units have a minimum size, units smaller than the minimum are combined with an other unit | What is the size of this unit and is it larger than the minimum size? | Less management capacity and overhead needed / organization of overhead is more efficient |
| 25 | Formal Organization – organization and management | Single point of contact | Customers (internal and external) have a single point of contact (one person is preferred) | Has this customer (internal and external) more than one contact points? Can it be one contact point? | Less faults are made and less coordination and communication is needed |
| 26 | Formal Organization – organization and management | Single responsibility for communication | Within line operations and projects is a clear responsibility for communication | Are more than one person responsible for communication? | Less coordination needed |
| 27 | Formal Organization – organization and management | One management and control model for all units | All units work with one management and control model and have the same set of performance indicators | Have the management and control models differences? Are these differences necessary? | Less coordination and communication and less work in aligning different management and control outcomes |
| 28 | Formal Organization – organization and management | Minimizing the number of (management)meetings | Only the really necessary meeting are organized and the duration of the meetings is not too long | Is this meeting really needed? | Less meetings, less time consumed with communication |
| 29 | Formal Organization – organization and management | Working with one policy and one set of priorities for all units | Working with one policy and one set of priorities for all units | Have the priorities and policies differences? Are these differences necessary? | Less coordination and communication and less work in aligning the differences |
| 30 | Formal Organization – organization and management | One time the right and complete information | One time the right and complete information | Is the information needed one time right and complete? Which bottleneck need to be tackled? | Less waiting and searching time |
| 31 | Formal Organization – organization and management | Reduce the peaks (number and heights) in resource claims | A smooth resource claim, due to good planning | Can peaks in resource claims be avoided by smart planning? | Less coordination |
| 32 | Formal Organization – organization and management | Reducing the number of organizing principles | The organizational structure is based on only 2 (or 3) simple principles | Do we need this organizing principle? | Less complex structure, so less communication needed |
| 33 | People | Developing entrepreneurship | Employees are taking responsibility and are seeking for opportunities | Are we giving enough responsibility to our employees? | Less coordination needed |
| 34 | People | Standardization of jobs / job description | The number of different jobs and job description is decreased, more people are doing almost the same job (opportunity for knowledge sharing) | Is this new job / job description needed, or can we use an existing one? | Less coordination and complexity less work in maintenance of job descriptions etc. |
| 35 | People | Aligning jobs with the processes | Responsibilities and tasks within a job are identical to complete processes, so transfer is not needed | Can this process be performed within one job? Is a spilt between several jobs really needed? | Less transfer of information and less coordination and communication |
| 36 | Formal Organization – ICT | Automation of standard processes | Automation of standard processes | Can this process / task be automated? Is automation cheaper than manual work? | Less manual work, less coordination of this work. More investments in ICT |
| 37 | Formal Organization – ICT | Computerization of process management | The management of the processes is automated, management reports are automatically produced | Can this process be management by a system? | Less coordination needed |
| 38 | Formal Organization – ICT | Reduce the number of IT-systems | A small number of ICT-systems | Is this ICT-system really needed? Can this task be performed in a already available ICT-system? | Less integration between systems needed. One source of data, so less faults. |
| 39 | Formal Organization – ICT | Standardization of IT-systems | Only standard ICT-systems are used | Is self-build software really needed? Is this special configuration really needed? | Upgrading systems is easier, less spending on ICT, attaching new functionalities is easier |
| 40 | Formal Organization -Knowledge | Reduce searching time for knowledge | Knowledge is easy findable within all parts of the organization or the right person is found very quickly | Is knowledge easy to find? | Less time spent on searching for knowledge |
Strategy = Execution. Improve, Renew and Innovate Faster
How can organizations make strategy execution their number one priority? And improve, renew and innovate faster? This I describe in my book Strategy = Execution. Strategy = execution is based on the research that Turner started years ago into the success factors of strategy execution and innovation. We interviewed 60 directors and professionals and analyzed more than 75 cases, 300 relevant books and articles.
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