The 10 of Simplification

Strategy = Execution

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;
1. (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
1. (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)
2. (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.
3. 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.

More about Jacques Pijl (author) and Turner Consultancy.
The most popular interventions based on Strategy = Execution
24 endorsements from organizational leaders
American management book of the year 2021, no. 1 in the category of strategic management, in the top 100 bestseller, seventh edition, translated into: English, German, Spanish, Russian and Bahasa.
Selection of the most important management books according to CEOs of innovative organizations (FD New Champions). Included in library of classics (mb.nl).
Nominated for Management Book of the Year.
Countless articles and interviews in FD, Emerce, Frankwatching and CFO.
Numerous Ted Talks and in-company workshops at the top 25-50 organizations, average rating 8.7.

More about Jacques Pijl (author) and Turner Consultancy
The most popular interventions based on Strategy = Execution
24 endorsements from organizational leaders
American management book of the year 2021, no. 1 in the category of strategic management, in the top 100 bestseller, seventh edition, translated into: English, German, Spanish, Russian and Indonesian.
Selection of the most important management books according to CEOs of innovative organizations (FD New Champions). Included in library of classics (mb.nl).
Nominated for Management Book of the Year.
Countless articles and interviews in FD, Emerce, Frankwatching and CFO.
Numerous Ted Talks and in-company workshops at the top 25-50 organizations, average rating 8.7.

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