A recent article in the McKinsey Quarterly provides an insightful perspective on the complexities of large organizations and ways to address these complexities and create value to the enterprise.
"Cracking the complexity code" differentiates between two types of complexity. The first is institutional complexity, which concerns the number and nature of interactions within a company. The second is individual complexity, which is the way individual employees and managers experience and deal with complexity.
The McKinsey research shows that although the two types of complexities are related, they are not linked. The article focuses on the factors that impact individual complexity, and methods to reduce individual complexity.
By reducing individual complexity, an organization can create highly levels of institutional complexity to best extract market value, without negatively impacting performance.
Read the article:
http://www.mckinseyquarterly.com/PDFDownload.aspx?L2=18&L3=30&ar=2001
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