{"id":31776,"date":"2023-10-23T15:49:14","date_gmt":"2023-10-23T14:49:14","guid":{"rendered":"http:\/\/www.turner.nl\/strategy-execution\/the-10-of-simplification\/"},"modified":"2023-10-24T11:12:50","modified_gmt":"2023-10-24T10:12:50","slug":"the-10-of-simplification","status":"publish","type":"page","link":"https:\/\/www.turner.nl\/en\/strategy-execution\/the-10-of-simplification\/","title":{"rendered":"The 10 of Simplification"},"content":{"rendered":"\t\t
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Strategy = Execution<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The 10 of Simplification<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The 10 of Simplification<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  1. Distinguish and assess the maximum improvement potential of setting a target in cost reduction and productivity improvement.<\/strong> As evident as it may sound, the latter often acts as a hindrance to the former within organizations.<\/li><\/ol>

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    1. Analyze the maximum improvement potential of simplification. In variants.<\/strong> 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.<\/li><\/ol>

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      1. First focus on simplification of ‘the big three’: processes, structure and control, and the change portfolio. <\/strong>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<\/strong>. Like this: S=E Annex 9<\/li><\/ol>
          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)<\/li>
          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.<\/li>
          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<\/li><\/ol><\/li><\/ol>
            1. Distinguish and assess the maximum improvement potential of setting a target in cost reduction and productivity improvement. <\/strong>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.<\/li><\/ol>

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              1. 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.<\/li><\/ol>

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                1. Establish a strong connection with HR.<\/strong> 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.<\/li><\/ol>

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                  1. Break the interventions down into manageable chunks.<\/strong> 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.<\/li><\/ol>

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                    1. Pay above-average attention to ownership and communication. <\/strong>See the building blocks from the Strategy = Execution method: building block 3, building block 4,<\/li><\/ol>

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                      1. Make simplification a periodic measure. <\/strong>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.<\/li><\/ol>

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                        1. Set up benefit management and secure the benefits.<\/strong> See the building blocks from the Strategy = Execution method: building block 9, building block 13<\/li><\/ol>

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                          Apply the Strategy = Execution method for the execution of the chosen simplification measures.<\/strong><\/p>

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                          Users of this 10 also often use: the 10 of Lean<\/a>, the 10 of cost and productivity issues<\/a>, and the 10 of synergy<\/a>.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                          \n\t\t\t\t\t\t\t\t\tTable: frequently used simplification principles: <\/strong>\r\n\r\n \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
                          \u00a0<\/strong><\/td>\r\nArea<\/strong><\/td>\r\nSimplification principle<\/strong><\/td>\r\nManifestation<\/strong><\/td>\r\nPossible question<\/strong><\/td>\r\nSimplification effect of principle<\/strong><\/td>\r\n<\/tr>\r\n
                          1<\/td>\r\nWork<\/td>\r\nFocus on core business (outsourcing)<\/td>\r\nOutsourcing all non-core-businesses<\/td>\r\nWhat is the added value of a specific task \/ process?<\/td>\r\nLess coordination needed for non-value adding processes<\/td>\r\n<\/tr>\r\n
                          2<\/td>\r\nWork<\/td>\r\nReducing the number of non-value adding processes<\/td>\r\nNon-value adding processes are eliminated or outsourced<\/td>\r\nWhat is the added value of a specific task \/ process?<\/td>\r\nLess coordination needed for non-value adding processes<\/td>\r\n<\/tr>\r\n
                          3<\/td>\r\nWork<\/td>\r\nIndependency in work<\/td>\r\nDifferent tasks are independent of each other, reduce waiting time for other processes<\/td>\r\nWhich processes have waiting time for other processes?<\/td>\r\nLess coordination and planning needed; processes work independent<\/td>\r\n<\/tr>\r\n
                          4<\/td>\r\nWork<\/td>\r\nStandardization (processes, products, working methods, packaging)<\/td>\r\nStandardization (processes, products, working methods, packaging)<\/td>\r\nCan this process \/ product \/ etc. be standardized?\r\nIs this specialty needed?\r\nAre processes needed that only serve 10 to 20% of our business?\r\nHow can this process be standardized?<\/td>\r\nLess variety in processes \/ products \/ etc., less coordination needed\r\nLess coordination needed for specialties, less production time needed for specialties<\/td>\r\n<\/tr>\r\n
                          5<\/td>\r\nWork<\/td>\r\nModular working (processes, products, etc.)<\/td>\r\nUsing the same modules in different processes, products. Re-using of processes and product development.<\/td>\r\nCan we re-use parts of other processes \/ products?<\/td>\r\nLess variety in processes \/ products \/ etc., less coordination needed<\/td>\r\n<\/tr>\r\n
                          6<\/td>\r\nFormal Organization – organization and management<\/td>\r\nResponsibilities and ownership at a lower level in the organization (empowerment)<\/td>\r\nUnit-management \/ Self-management of teams<\/td>\r\nCan this responsibility be given to a lower level in the organization?<\/td>\r\nLess management layers are needed, less communication and coordination<\/td>\r\n<\/tr>\r\n
                          7<\/td>\r\nFormal Organization – organization and management<\/td>\r\nOrganizing principles based on primary business characteristic<\/td>\r\nOrganizing by products, or accounts, etc.<\/td>\r\nWhat is the primary business principle and are we organized by it?<\/td>\r\nReduces the need for coordination and communication<\/td>\r\n<\/tr>\r\n
                          8<\/td>\r\nFormal Organization – organization and management<\/td>\r\nCentralization of specializations<\/td>\r\nCentralizing of specialized staff<\/td>\r\nIs it more efficient to organize this staff at central level for all units?<\/td>\r\nLess people needed for this staff; knowledge easier maintained<\/td>\r\n<\/tr>\r\n
                          9<\/td>\r\nFormal Organization – organization and management<\/td>\r\nIntegral management<\/td>\r\nLine management is responsible for all management topics, staff can be minimized<\/td>\r\nDoes this task really need to be performed by staff?\r\nCan this task be performed by a line manager instead of a staff employee?<\/td>\r\nLess staff and less coordination between staff and line management.<\/td>\r\n<\/tr>\r\n
                          10<\/td>\r\nFormal Organization – organization and management<\/td>\r\nReduction of hierarchical levels<\/td>\r\nReducing of the number of management levels, the span of control will increase<\/td>\r\nWhat is the added value of a management layer?<\/td>\r\nLess managers and less coordination and communication between managers<\/td>\r\n<\/tr>\r\n
                          11<\/td>\r\nFormal Organization – organization and management<\/td>\r\nAd-hoc work in project groups<\/td>\r\nOnetime events and ad-hoc work is organized in project groups (not a formal part of the organization structure)<\/td>\r\nIs this task a onetime event or is it a structural task?\r\nCan it be better performed in a project group?<\/td>\r\nLess disruption in line activities and less coordination in line activities.\r\nCoordination of projects are more complex, and jobs will be less rich<\/td>\r\n<\/tr>\r\n
                          12<\/td>\r\nFormal Organization – organization and management<\/td>\r\nWorking with (self-management) teams<\/td>\r\nOrganizing by teams, this reduces the management capacity hat’s needed<\/td>\r\nCan this responsibility be given to a team?<\/td>\r\nLess management layers are needed, less communication and coordination<\/td>\r\n<\/tr>\r\n
                          13<\/td>\r\nFormal Organization – organization and management<\/td>\r\nMinimizing the need for coordination<\/td>\r\nResponsibilities are split in such way, that a minimum of coordination is needed between teams<\/td>\r\nCan we divide the tasks in a different way, so coordination and communication aren\u2019t needed?<\/td>\r\nLess time is spent on coordination, number of faults reduces, and more time is left for the core of the work<\/td>\r\n<\/tr>\r\n
                          14<\/td>\r\nFormal Organization – organization and management<\/td>\r\nMinimizing the need for communication \/ information<\/td>\r\nTasks are split in such way, that a minimum of communication and information sharing is needed between teams<\/td>\r\nCan we divide the tasks in a different way, so communication and information sharing aren\u2019t needed?<\/td>\r\nLess time is spent on coordination and communication, number of faults reduces, and more time is left for the core of the work<\/td>\r\n<\/tr>\r\n
                          15<\/td>\r\nFormal Organization – organization and management<\/td>\r\nCombining of double tasks \/ jobs<\/td>\r\nGrouping the (staff) jobs that are double in the organization<\/td>\r\nWhich jobs are executed at different places and is this needed?<\/td>\r\nLess people needed for this staff, knowledge easier maintained, less coordination needed between BU’s<\/td>\r\n<\/tr>\r\n
                          16<\/td>\r\nFormal Organization – organization and management<\/td>\r\nClear performance management<\/td>\r\nManagers know the performance with simple measures\u00a0\u00a0 (don’t make it too complex)<\/td>\r\nIs this performance indicator or control measure needed?\r\nCan this performance indicator or control measure less complex?<\/td>\r\nLess time spent on producing management reports and on reading management reports<\/td>\r\n<\/tr>\r\n
                          17<\/td>\r\nFormal Organization – organization and management<\/td>\r\nReducing the level of detail in information management<\/td>\r\nOnly supply the really needed information, do not give too much detail information if not needed<\/td>\r\nIs this information really needed, can it be less complex?<\/td>\r\nLess time spent on producing management reports and on reading management reports<\/td>\r\n<\/tr>\r\n
                          18<\/td>\r\nFormal Organization – organization and management<\/td>\r\nSpan of control aligned with the role of manager<\/td>\r\nThe span of control must be aligned with the role of the manager<\/td>\r\nIs the span of control large enough for this manager and his role?<\/td>\r\nLess managers needed<\/td>\r\n<\/tr>\r\n
                          19<\/td>\r\nFormal Organization – organization and management<\/td>\r\nUnity in management<\/td>\r\nAn employee has only one manager that is responsible for the hierarchical, functional end operational management<\/td>\r\nHas this employee more than one manager?<\/td>\r\nLess coordination and communication needed with employee and other managers<\/td>\r\n<\/tr>\r\n
                          20<\/td>\r\nFormal Organization – organization and management<\/td>\r\nMinimizing needed contact points<\/td>\r\nAn employee has a minimum number of contacts for operational and management information<\/td>\r\nCan the number of contact-points for this employee be reduced?<\/td>\r\nLess coordination and communication needed<\/td>\r\n<\/tr>\r\n
                          21<\/td>\r\nFormal Organization – organization and management<\/td>\r\nExecuting a process from trigger to result within one unit\r\nMinimizing transfer points<\/td>\r\nOne unit executes all tasks needed to bring a trigger to a result, no coordination is needed with other units<\/td>\r\nCan this task be performed within one responsibility area?<\/td>\r\nCoordination and communication during process is not needed<\/td>\r\n<\/tr>\r\n
                          22<\/td>\r\nFormal Organization – organization and management<\/td>\r\nOne time right, control isn’t needed<\/td>\r\nControl tasks can be eliminated<\/td>\r\nIs this non-value adding control task needed?<\/td>\r\nLess tasks to perform, more time for the real business<\/td>\r\n<\/tr>\r\n
                          23<\/td>\r\nFormal Organization – organization and management<\/td>\r\nCombining executing and managing of processes<\/td>\r\nAn employee is executing the task and also planning, managing and controlling the task<\/td>\r\nCan the employee manage the process itself?<\/td>\r\nLess coordination and communication needed<\/td>\r\n<\/tr>\r\n
                          24<\/td>\r\nFormal Organization – organization and management<\/td>\r\nMinimum size of a unit<\/td>\r\nUnits have a minimum size, units smaller than the minimum are combined with an other unit<\/td>\r\nWhat is the size of this unit and is it larger than the minimum size?<\/td>\r\nLess management capacity and overhead needed \/ organization of overhead is more efficient<\/td>\r\n<\/tr>\r\n
                          25<\/td>\r\nFormal Organization – organization and management<\/td>\r\nSingle point of contact<\/td>\r\nCustomers (internal and external) have a single point of contact (one person is preferred)<\/td>\r\nHas this customer (internal and external) more than one contact points?\r\nCan it be one contact point?<\/td>\r\nLess faults are made and less coordination and communication is needed<\/td>\r\n<\/tr>\r\n
                          26<\/td>\r\nFormal Organization – organization and management<\/td>\r\nSingle responsibility for communication<\/td>\r\nWithin line operations and projects is a clear responsibility for communication<\/td>\r\nAre more than one person responsible for communication?<\/td>\r\nLess coordination needed<\/td>\r\n<\/tr>\r\n
                          27<\/td>\r\nFormal Organization – organization and management<\/td>\r\nOne management and control model for all units<\/td>\r\nAll units work with one management and control model and have the same set of performance indicators<\/td>\r\nHave the management and control models differences?\r\nAre these differences necessary?<\/td>\r\nLess coordination and communication and less work in aligning different management and control outcomes<\/td>\r\n<\/tr>\r\n
                          28<\/td>\r\nFormal Organization – organization and management<\/td>\r\nMinimizing the number of (management)meetings<\/td>\r\nOnly the really necessary meeting are organized and the duration of the meetings is not too long<\/td>\r\nIs this meeting really needed?<\/td>\r\nLess meetings, less time consumed with communication<\/td>\r\n<\/tr>\r\n
                          29<\/td>\r\nFormal Organization – organization and management<\/td>\r\nWorking with one policy and one set of priorities for all units<\/td>\r\nWorking with one policy and one set of priorities for all units<\/td>\r\nHave the priorities and policies differences?\r\nAre these differences necessary?<\/td>\r\nLess coordination and communication and less work in aligning the differences<\/td>\r\n<\/tr>\r\n
                          30<\/td>\r\nFormal Organization – organization and management<\/td>\r\nOne time the right and complete information<\/td>\r\nOne time the right and complete information<\/td>\r\nIs the information needed one time right and complete?\r\nWhich bottleneck need to be tackled?<\/td>\r\nLess waiting and searching time<\/td>\r\n<\/tr>\r\n
                          31<\/td>\r\nFormal Organization – organization and management<\/td>\r\nReduce the peaks (number and heights) in resource claims<\/td>\r\nA smooth resource claim, due to good planning<\/td>\r\nCan peaks in resource claims be avoided by smart planning?<\/td>\r\nLess coordination<\/td>\r\n<\/tr>\r\n
                          32<\/td>\r\nFormal Organization – organization and management<\/td>\r\nReducing the number of organizing principles<\/td>\r\nThe organizational structure is based on only 2 (or 3) simple principles<\/td>\r\nDo we need this organizing principle?<\/td>\r\nLess complex structure, so less communication needed<\/td>\r\n<\/tr>\r\n
                          33<\/td>\r\nPeople<\/td>\r\nDeveloping entrepreneurship<\/td>\r\nEmployees are taking responsibility and are seeking for opportunities<\/td>\r\nAre we giving enough responsibility to our employees?<\/td>\r\nLess coordination needed<\/td>\r\n<\/tr>\r\n
                          34<\/td>\r\nPeople<\/td>\r\nStandardization of jobs \/ job description<\/td>\r\nThe number of different jobs and job description is decreased, more people are doing almost the same job (opportunity for knowledge sharing)<\/td>\r\nIs this new job \/ job description needed, or can we use an existing one?<\/td>\r\nLess coordination and complexity less work in maintenance of job descriptions etc.<\/td>\r\n<\/tr>\r\n
                          35<\/td>\r\nPeople<\/td>\r\nAligning jobs with the processes<\/td>\r\nResponsibilities and tasks within a job are identical to complete processes, so transfer is not needed<\/td>\r\nCan this process be performed within one job?\r\nIs a spilt between several jobs really needed?<\/td>\r\nLess transfer of information and less coordination and communication<\/td>\r\n<\/tr>\r\n
                          36<\/td>\r\nFormal Organization – ICT<\/td>\r\nAutomation of standard processes<\/td>\r\nAutomation of standard processes<\/td>\r\nCan this process \/ task be automated?\r\nIs automation cheaper than manual work?<\/td>\r\nLess manual work, less coordination of this work. More investments in ICT<\/td>\r\n<\/tr>\r\n
                          37<\/td>\r\nFormal Organization – ICT<\/td>\r\nComputerization of process management<\/td>\r\nThe management of the processes is automated, management reports are automatically produced<\/td>\r\nCan this process be management by a system?<\/td>\r\nLess coordination needed<\/td>\r\n<\/tr>\r\n
                          38<\/td>\r\nFormal Organization – ICT<\/td>\r\nReduce the number of IT-systems<\/td>\r\nA small number of ICT-systems<\/td>\r\nIs this ICT-system really needed?\r\nCan this task be performed in a already available ICT-system?<\/td>\r\nLess integration between systems needed. One source of data, so less faults.<\/td>\r\n<\/tr>\r\n
                          39<\/td>\r\nFormal Organization – ICT<\/td>\r\nStandardization of IT-systems<\/td>\r\nOnly standard ICT-systems are used<\/td>\r\nIs self-build software really needed?\r\nIs this special configuration really needed?<\/td>\r\nUpgrading systems is easier, less spending on ICT, attaching new functionalities is easier<\/td>\r\n<\/tr>\r\n
                          40<\/td>\r\nFormal Organization -Knowledge<\/td>\r\nReduce searching time for knowledge<\/td>\r\nKnowledge is easy findable within all parts of the organization or the right person is found very quickly<\/td>\r\nIs knowledge easy to find?<\/td>\r\nLess time spent on searching for knowledge<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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                          Strategy = Execution. Improve, Renew and Innovate Faster<\/h3>\n\t\t\t\t\t

                          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.<\/p>\n\t\t

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