Innovating Leadership:
Co-Creating Our Future

Episode Content:

Organizational Complexity is a Rapidly Spreading Virus that Needs to be Eradicated

This blog is a guest post provided by Jesse Newton is the author of Simplify Work; Crushing Complexity to Liberate Innovation, Productivity and Engagement. It is the companion to the Voice America Interview with Jesse Newton focusing on his book.

The Situation: An epidemic is affecting businesses large and small. This epidemic is debilitating complexity. The disease restricts innovation, limits productivity, disengages the workforce, and eventually leads to organizational failure. Debilitating complexity takes the form of unnecessary and complicated structures, processes, systems, rules, metrics, checks and balances, and so on. Businesses traditionally add more and more of these things as they grow. There seems to be an acceptance that as a business grows, complexity and complicatedness are natural by-products. And while complexity certainly does increase as businesses mature, it does not mean that it needs to stifle innovation and entrepreneurship. The same story plays out over and over again once a company gets to a certain size: the entrepreneurial leaders decide that their juvenile business is becoming an adolescent and want to be taken seriously, so they bring in an experienced “big company” professional. The big company person then sets about installing all of the “discipline” that a serious organization requires—defined roles and responsibilities, performance metrics, committees, strict common processes, and so on, and so on. Then, all of a sudden, people begin adhering to their newfound role expectations, they start to get lost in all the processes and paperwork, they become scared to step outside of their defined role, and spontaneous rich innovation becomes a distant memory.

The Data: In a recent study 74% of respondents rated their organization as complex. In this digital age, when technology is fueling rapid changes in consumer preferences and reshaping industries, it is critical that companies innovate well and fast. Companies that are bogged down in slow decision making, risk intolerance, and siloed protectionism are destined to fail.

The Cause: The current complexity crisis is largely due to many organizations holding on to outdated and obsolete methods of organizing how work gets done. These 20th-century approaches to organizational structure and management are strangling our productive and innovative potential. They are limiting the thinking power of our people and not effectively using the resources at organizations’ disposal.

The Imperative: From an individual perspective, how we protect and allocate our time and energy is becoming increasingly paramount. The most important resource people have is their time, and we are spending far too much of it on the wrong things. We are pulled in so many directions and have to spend so much time and energy navigating through a labyrinth of processes and structures that we have lost touch with what really matters. We simply do not have the time and energy to do our best work on the most important activities.

As we are working longer and longer on increasingly low-value work, we often don’t even realize it. We have become accustomed to the four approvals we require to do anything and accustomed to going through a leader to talk to someone in a different function. We’re accustomed to navigating through three separate systems to find the information we need, and we’re accustomed to dedicating a quarter of the year to complete the budgeting process. Let’s not forget about that report one of your leaders within the matrix needs; that clearly should take precedence over everything else.

Deep down we know something is not quite right. We are not spending quality time doing the work we were hired to do. We find that it is getting harder to stay on top of everything and enjoy a good balance or even a balance at all. This results in us simply checking out. Engagement scores across companies over the past 30 years have consistently decreased. According to Gallup, only 28% of the US workforce is engaged at work, the rest are either actively disengaged or merely not engaged.

The implication: for business is that things move too slow, people think and act in silos, it’s hard to get anything done, decision making is poor, innovation is missing, risk-taking is low, and it all leads to increasing costs and being left behind by more nimble competitors. But it doesn’t have to be this way.
Companies that are mired in debilitating complexity can break free of its hold. With strong leadership support and a clear approach for attacking complexity companies can re-energize their people by bringing back the laser focus, reducing the clutter and releasing the reins on innovation. The epidemic of complexity is spreading throughout the world of business and if it is not reined in, those that have managed to keep it at bay will leap ahead and those that don’t will fall by the wayside.

The Opportunity: What if we could take a fresh look at our businesses, reconsider what is really important, and start to focus our time and energy on those things that matter. Imagine the positive effect it would have on your people if you told them they now have permission to do more of the work they were hired for. Imagine their sense of liberation if you removed a big chunk of the activities that soak up their time: low-value training, compliance, meetings that should be emails, expense processing, report building, budget setting, clunky performance management, and so on.
The time is right to simplify work

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Check out the companion interview and past episodes of Innovating Leadership, Co-creating Our Future, via iTunes, TuneIn, Stitcher, Spotify, Amazon Music, Audible,  iHeartRADIO, and NPR One.  Stay up-to-date on new shows airing by following the Innovative Leadership Institute LinkedIn.

Jesse Newton is the author of Simplify Work; Crushing Complexity to Liberate Innovation, Productivity and Engagement. He is the founder and CEO of Simplify Work; a global management consulting firm that helps organizations throw off the shackles of debilitating complexity and reignite top performance.

jnewton@simplifywork.com

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