Over the last decade, a great deal has been written about the increasing complexity of jobs and organizations. Employees report higher rates of feeling overwhelmed/burnout, and companies are dealing more complex environments which includes increasing regulation as well as significant technology and marketplace shifts (AI, remote/return-to-office strategy, etc.). Change is coming so fast that traditional (i.e. methodical) change management approaches move too slowly and are still in the middle phases while the next change is already beginning. And although we have access to exponentially more information than we did in recent years, the overload of quantity and granularity of data causes additional strain.
We can’t slow down changes in the market or technology landscape. But we can choose how we respond – how we design organizational systems and jobs to best support human performance for the long haul. What are the best methods we have available to combat organizational complexity, and in the process improve employee performance and engagement?
Method #1 – Sharpen Your Strategic Direction
Strategy, and corporate communication of that strategy, can often end up muddled. Some organizations set strategy that is so long-term and big-picture (i.e. vague) that communication of it doesn’t give leaders and their departments enough “meat” to build plans around. Yet other strategies can be so granular that our environment of constant change immediately throws wrenches in aspects of the plan and causes need for rework.
Generally sharpening the strategic direction is best achieved through separating long- and short-term focus as each are important to drive behavior, but have different needs for each to be drafted successfully.
Long-term strategic focus should be centered on defining the markets served, method for serving them, key differentiators, and a value structure that defines the culture.
Short-term strategic focus should include the handful of key priorities for the next 6-18 months that help drive the organization closer to that long-term strategic focus. Regarding short-term priorities, less is more. An organization can only reasonably focus on between 3 and 6 key priorities over a 6-18 month time period. Language should be concrete and measurable where appropriate to increase the ease that department leaders and individual employees will have in linking their efforts towards these objectives
Method #2 – Eliminate Efforts Not Linked to the Strategic Direction
Ultimately, even with a well defined and concrete strategic focus, department leaders and individuals will still have projects outside the scope of the stated priorities of the organization. Surfacing these (generally as a part of the budget/planning process) and appropriately triaging these projects during a formal review is a critical component to limiting complexity. Every additional initiative, system, and process takes up some of an organization’s limited ‘air space’ (resources of central departments (e.g. IT, legal, etc.) as well as capacity for communications and the employee base’s ability to process changes). Accordingly, asking some key questions during the budget review process is key.
· Is this directly linked (one or two logical steps of connection) to the strategic focus?
· If not, is this related to a necessary regulatory or other business requirement?
· If not, is this related to the continued necessary operations of a function? What would happen if we did not do this, and instead focused additional resources directly on our strategic priorities?
Eliminating these new sources of additional complexity is one of the most powerful things you can do to increase your organization’s strategic focus.
Method #3 – Avoiding “Meta-Jobs”
There has been a veritable explosion in recent years of jobs meant to supervise/monitor/improve other jobs, and jobs meant to do the same for core operational processes. In large enterprises, these meta-functions sometimes even have supporting meta-functions of their own.
Similarly to the initiatives described above, identifying jobs/hires that are not one or two logical steps away from the strategic direction of the organization should be heavily scrutinized. These resources should ideally be devoted to more directly strategy supporting investments.
Method #4 – Concrete Expectations and Regular Review
So we’ve discussed the big stuff – strategy, initiatives, and people. But what about the day to day? Translation of the strategic direction to department level goals/KPI and then individual expectations is a critical component. Using your performance management system to align goals or OKRs to the strategy direction, and having regular team or department reviews can go far in reinforcing the organization’s focus. This ensures individuals, in addition to their departments, stay on plan.
Method #5 – Flat Organizational Design
To ensure the organization continues to run with focus and low complexity, its teams must be designed with high leverage (flat) and a high degree of autonomy, governed by the planning and performance systems described above. This, when combined with clear decision rights where organizational outcomes are clearly owned, will help limit complexity. No more complex approval chains, or disparate stakeholder groups collectively governing organizational outcomes.
Battling complexity is a constant effort, requiring several key processes to stay vigilant. Building these controls into your planning, performance management, and organizational design efforts can help your organization stay focused and control unnecessary distractions.