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.