Want to Boost Profits By 10%? Modify These 3 Things
By Lisa Bodell for Forbes
The downside of workplace complexity — daily frustration, red tape, reduced productivity — is no surprise to today’s leaders. But a study from the University of Warwick Business School in the U.K. estimates that complexity is actually robbing the average company of 10% in annual profits. Could simplifying in a few key areas offset the rising cost of complexity for your business?
As a CEO and workplace expert, I’ve guided leaders all over the world through the process of simplifying. Unlike the processes that clutter our work lives, simplifying reduces and streamlines with the goal of removing barriers to productivity and profits. The ideas below are immediately actionable and have helped companies like Citibank and Pfizer reap the rewards of simplification.
1. Simplify decision-making across your entire org. The failure to clarify who should make which decisions slows down hiring, product development and time-to-market. By pushing decisions down to the lowest possible level — also known as the principle of subsidiarity — leaders can focus solely on the decisions with the greatest business impact.
Start by reviewing the decision-making processes in your organization. Challenge yourself and your colleagues to reduce or eliminate the number of people required to approve, review or sign off on certain decisions.