Smart Simplicity Yves Morieux

Stockholm – November 21st, 2013

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Organizing for competitive advantage

Strategy, success factors Structures, Processes...

Growth

Current performance

Functional Expertise

Maintain coherence across products

Efficiency

Innovation

Geography B

Geography A

Geography...

Geography C

Global scale

Local responsi- veness

Finance

HR

IT

Finance HR

IT

...

Speed

Reliability

Simplicity

Choice ...

Area

1

Area

2

Shared services develop synergies

Custo- mization

Standar- dization

Source: Y. Morieux (2011), 'To Boost Productivity, Try Smart Simplicity', BCG.Perspectives, July. Available at: https://www.bcgperspectives.com/content/podcasts/strategic_planning_people_management_human_resources_morieux_yves_key_to_boosting_productivity/

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Leadership

• Managerial value-added

+

+

Cooperation

• Each one's behavior increases the effectiveness of others

+ + Engagement

• Value-adding execution

+

Beyond the skeleton, need the nervous system

Source: Y. Morieux (2011), 'Management: a Sociological Perspective'. In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization.

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Effect on performance

Resources

Cooperation

Over-consumption of resources • Time, delays,

equipment, inventories, stock, waste, mistakes, accidents, teams, extra pressure on the individual...

Freeing resources for value-adding activities

Source: Y. Morieux (2011), 'Management: a Sociological Perspective'. In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization.

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Expand the shadow of the future • Duration • Frequency • Inversion

Smart rules

Source: Y. Morieux (2011), 'Smart Rules: Six Ways to Get People to Solve Problems Without You', Harvard Business Review, volume 89, n°9, September: pp78-86

Improve knowledge of others • Their work, strengths • Management to re-

cognize performance

Reinforce integrators • Removing rules • Refusing escalation • Delayering

Increase total quantity of power • To give all actors

enough cards to play a more collective game

Enlarge the domain of reciprocity • Rich objectives • Cut resources • No internal monopoly

Modify the pay-off matrix • Make those who

don't cooperate bear the cost

Explanations available at: http://www.youtube.com/watch?v=irRQOWAaABk

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Advantage by simplifying the organization to better manage business complexity

Less structures No bureaucracy More capabilities

Engagement

Leader- ship

+

+

Cooperation + +

+

Out- source Pool

IT-infrastructure

Elimi- nate

Stan- dardize

Source: BCG Navigator, available at: http://www.bcg.com/expertise_impact/BCG_fellows/organization/yves_morieux.aspx

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More on this topic

Forthcoming book: Six Simple Rules – How to Manage Complexity Without Getting Complicated, Harvard Business Review Press Available at: http://www.amazon.com/Six-Simple-Rules-Complexity-Complicated/dp/1422190552