We’ve been talking a lot about change at Material Insights. Why it’s important to your business to recognize what’s happening around it, particularly the types of change that doesn’t get talked about in the break room or the boardroom. Kind of like climate change, except on fast-forward. The point is if such phenomenon is not recognized soon enough, you could end up out in the cold, unprepared, and without a shirt. So in effect, the “change” could end up freezing you out of business, so to speak. Here’s where I’m going with this—I’ll make it easy. In the last couple of posts I’ve discussed the “Four forces of change,” a concept derived from a cool book titled “Flip—How to Turn Everything You Know on Its Head—and Succeed Beyond Your Wildest Imaginings” by Peter Sheahan. In this third installment, I take on the second force of change that Sheahan identified: “Increasing complexity.” Have you noticed any lately?
“My biggest problem was, that I had to hire whole people, when all I needed was two hands.“—Henry Ford, 1910
Complex vs. Complicated—know the difference
Confronting the topic of complexity, my inner self was shouting KISS! Keep it simple stupid—don’t make a blog post on complexity complicated! No promises.
First big aha. The terms complicated and complex are two very different things that are often confused. We need to clarify this point first. Coatings processes are relatively complicated but they are not complex. The coating product that is ultimately applied is complex. Coatings processes get complicated when you consider the variables, including people, and all the things that can go wrong. But when things get complicated we can usually simplify them. We can look and see the relationships between the steps—and figure it out. So the process of coating may be complicated but it’s transparent—we can see what’s happening. Complexity, on the other hand, is usually not so transparent. Like the liquid or powder coating you use, you cannot see the chemistry that makes it all work so well (particularly if it’s an ACCESSA product), you can’t simplify it. The process of drying alone is a complex change of state. I’m sure you can think of many other examples that illustrate the contrast between the two terms. It’s very important to distinguish between them. Now to the real subject of complexity.
NOTE: It would help you if you read the previous post “Five ways to keep on moving forward…in spite of change.” It examines the first force of change, “increasing compression of time and space” which, in turn, produces complexity. That should help give you a bigger-picture view of complexity.
The Four Forces of Change:
#2. Increasing complexity: how to tame it
The worst part of complexity is that it brings with it uncertainty and ambiguity. Sheahan says complexity “can induce paralysis that prevents innovation and positive action and it may in turn force the downfall of once-great companies and careers.”
Here’s a short list of things we’ve talked about before that create and drive complexity. Note the abstract terms like “ideas, choice and intangibles” in each one of the descriptions Sheahan presents. So with complexity it’s not easy to see exactly how it all works or what all the implications might be. The test is you can’t simplify any one of them very easily.
- Rapidly interconnecting networks of ideas and people
- Disruptive technology
- Explosion of choice
- Rise of intangibles
- Increased sophistication
- Legislation & more regulation
Here’s what I recommend you do to tame complexity. Get your people together and have a brainstorm session. Focus on the subject of complexity and answer these four questions:
- What could you add to the list above? Are they trends or something else? How has complexity impacted your business already?
- How will it change, if any, in 5 or 10 years?
Second big aha. Customers are not attracted by complexity (or complicatedness for that matter). Continue your brainstorm:
- What impact does complexity have on your customers?
- What opportunities can your business derive from increasing complexity?
INSIGHT:
The new world calls for new ways of thinking and doing business. Face change and tame complexity with these four steps:
- Be the first to identify major changes that get overlooked in your industry because they are so cloudy and ominous. In that way you’re a mile ahead of the next guy who’s not thinking about it at all.
- Accept that the elephant-in-the-room is not going away anytime soon.
- Learn to recognize the implications on your life and on your business.
- React appropriately. Realize that, in your business, there may be more opportunity than threat.
My inspiration is yours. The central idea, “The Four Forces of Change,” as well as some explicit excerpts used in this post, is derived from a book titled “Flip— How to Turn Everything You Know on Its Head—and Succeed Beyond Your Wildest Imaginings” by Peter Sheahan. It’s the kind of book you will read more than once, as I did. I highly recommend it. Tough subject!
I welcome your comments, questions or more discussion.