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| The Genius of Simplicity |
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Friday August 6, 2010
Topic: Executive Management Reference: Schumpeter. "Someoneto watch over them". Economist.com: http://www.economist.com/businessfinance/printerfriendly.cfm?story_id=14637626. October 22, 2009. Lately I have been intrigued by the power of simplicity. There is the power of the simplicity of design. For example, the iPad is a beautiful piece of machinery with limitless potential. There is the power of the simplicity of thought. Mike Shanahan on the importance of practice: "You've got to practice well to play well." The power of focus is yet another example of the strength of simplicity. To paraphrase Aristotle, "we are what we repeatedly do." In a world that is becoming even more complex, perhaps the remedy is not more complexity but rather a move toward simplicity.
Friday August 6, 2010
Topic: Executive Management
Reference: Schumpeter. "Someone to watch over them". Economist.com:
http://www.economist.com/businessfinance/printerfriendly.cfm?story_id=14637626.
October 22, 2009.
Lately I have been intrigued by the power of
simplicity. There is the power of the simplicity of design. For example, the
iPad is a beautiful piece of machinery with limitless potential. There is the
power of the simplicity of thought. Mike Shanahan on the importance of
practice: "You've got to practice well to play well." The power of
focus is yet another example of the strength of simplicity. To paraphrase
Aristotle, "we are what we repeatedly do." In a world that is
becoming even more complex, perhaps the remedy is not more complexity but rather
a move toward simplicity. Occam’s razor summarizes this principle: "in
short when given two equally valid explanations for a phenomenon, one should
embrace the less complicated formulation." In leadership and management it
seems to be self evident that a drive for simplicity is required. Transparency
is the buzzword of the day; complex business models have failed to produce
sustainable results, and at the end of the day customer service today is just
about as bad as it has ever been. At this time, simplicity can be a saving
grace. It is past time to think longer term and beyond immediate profits. Think
BP oil spill in the Gulf. It is well past time to build and support products
that people want to buy. Think a revitalized domestic auto industry brought back
from the brink of extinction by governmental fiat. It is now time to re-think
organizational structures, processes, and personnel practices. In short it is
time to really start thinking. That is partially what drives the theory behind
the referenced commentary. In it the commentator takes the position that it may
be time to split the role of Chairman from the role of CEO in U.S. companies.
As it turns out, that is typically the case in other countries. "Today's
global bosses have enough on their plates without having to chair board
meetings...Boards are becoming more independent and professional, rendering the
old-style-strongmen ever more of an anachronism." Let's hope so. Such
simplicity can help focus time on task and could help yield better results. If
not, at least there will be more accountability and that is really what we
should demand. The link between organizational simplicity and improved
accountability is one that hopefully will grow stronger with time. The
alternatives are not nearly as attractive.
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