As Gareth Penny, former boss of De Beers, the global diamond company, says, “the role of the CEO is to simplify the complexity and stick to a few themes.”  Easier said that done.

We all are faced with a complex world, and the complexity is growing as we are inundated with information about everything going on everywhere. If you’re not careful you can get caught up in constantly changing everything without any thought to what is the core of your business. More information constantly attacking you does not make for good decisions…it just leads to chaos as you attempt to take it all in and adjust things minute to minute. Or second to second.

The most important word a good manager needs to learn to say is…no.  The most important task a good manager needs to learn is how to shut the door, put feet on desk, and think without interruption.

You need to have a clear business model, and follow it.  You need to have a distinctive culture, that all are passionate about. And most importantly you need to have the will power to stay away from the shiny stuff that glitters all around you trying to distract you from focusing on who you are and what you do.

This is not the same thing as becoming fixed in place, of becoming stuck on something while the world passes you by. Rather simplicity enables you to have the clarity of purpose and focus on excellence that enables you to continually improve and expand while staying true to your core business.  It gives you direction and allows you to cut through the siren call of complexity which only leads to increased cost and aggravation…and confusion for most.

In their new book Repeatability, Bain consultants Chris Zook and James Allen talk about simplicity.  For them the most successful companies share three traits:

  • a highly distinctive core business
  • a simple business model
  • both followed relentlessly

Think Lego…global revenue US$3.945 billion in 2011. Profit US$776 million. And all they do is make little brightly colored plastic things that hurt your feet when you step on them while wandering around barefoot.

 

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