Cracking The Complexity Code

Source: McKinsey & Company

There are two types of complexity. Understanding where to intervene is the key to managing them to create value. One view of complexity holds that it's largely a bad thing - that simplification generally creates value by removing unnecessary costs. Excessive complexity, according to this argument, should be addressed by reducing the number of countries where a company operates, streamlining its product range, or creating an organizational structure that focuses primarily on one dimension, such as geographies or functions.
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Date:Apr 2007