Do You Need to Decrease Organizational Complexity?
Unfortunately, organizational complexity can often be an unintended consequence of business success. We define organizational complexity as a combination of excessive management tiers, inefficient systems, cumbersome procedures, misaligned performance metrics, confusing role definitions, and cloudy accountability.
Different from institutional complexity related to business model decisions such as geographic reach, product scope, and operational scale, organizational complexity makes it difficult, frustrating, and confusing to get important work done in a way that makes sense. These complications can become both glaring and hidden barriers to profitability, growth, and employee engagement.
Four Key Steps to Decrease Organizational Complexity
The goal is to identify and reduce unnecessary complexity that has arisen from misalignment between how work gets done and the strategic priorities of the company. Our organizational alignment research found that solving this misalignment between strategy and culture accounts for 40% of the difference between high and low performing companies.
When leaders show why and how to simplify and focus how work gets done, they show the workforce that they are committed to doing what it takes to both get the desired results and to behave in alignment with the corporate values.
Unfortunately, our research found that employees on average report that their organization’s strategy is half as clear to them as to their executive team. And 2-out-of-3 executive teams are strategically less aligned than they believe. Is your strategy clear enough?
The goal is to make sure that the way work gets done is not only aligned with your strategy but also easy on your employees, partners, and customers.
The Bottom Line
Beware of complexity creep. It can stall growth and decrease organizational health. Make alignment and simplicity an ongoing priority.
To learn more about how to have your culture accelerate your strategy and motivate your employees, download How to Create a Purposeful and Aligned Culture for your Unique Strategy
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