Cost of complexity
Managers love complexity. Complexity is stimulating and intellectually challenging, it is a nice break from boring routine and it creates interesting jobs/projects for managers to talk about over dinner to impress others.
Whenever something has become complex, try to simplify it! If you can´t, look if it’s possible to eliminate it.
Look with a helicopter perspective on your company. An efficient way of think about complexity and cut cost is by analysing the business with the 80/20 Principle: By first looking over where you have the most potential to simplify and cut cost. Follow the numbers in your annual rapport, Analyse the sales for every item/product or service. Try to learn what makes your best products or services so successful and multiply those processes on the rest of the company.
Major improvements are possible, by analysing your business continually. If you find some complex production cost or service think outside of the box, get inspiration from different industries. By doing things differently than everybody else in the industry and by trying to do less in the service or production cost small changes can make a big difference when it adds up. It is easy to forget the alternative cost of some products or services. Ask yourself why you do like you always done and attack the problem from different angles.
Progress requires simplicity, and simplicity requires an objective thinking without feelings involved. This helps to explain why simple is as rare as it is beautiful.