Core Insights - The core issue facing many companies is the increasing complexity that is hindering growth, as organizations struggle to adapt to rapidly changing consumer demands and market uncertainties [1][4][5] - Companies are often trapped in a cycle of adding more processes, departments, and KPIs, which leads to inefficiencies rather than improvements in productivity and innovation [1][4][5] - A strategic approach to management should focus on "subtraction" rather than "addition," simplifying operations to enhance clarity and collaboration [2][6][8] Complexity in Management - Over the past decades, internal adjustments made by companies to meet customer needs have led to a dramatic increase in organizational complexity [1][4] - Employees are spending excessive time on processes, inter-departmental conflicts, and ineffective reporting, which detracts from value creation [1][4][5] - The traditional reliance on adding more rules and structures has not resulted in improved efficiency or competitiveness [4][5] The Need for "Subtraction" in Management - Effective management in complex environments requires a focus on reducing unnecessary tasks and clarifying objectives [2][6][8] - Companies should prioritize creating a healthy work environment that encourages employees to focus on impactful activities rather than being bogged down by excessive regulations [5][6] Practical Guidelines for Simplification - **Rule 1: Understand Employee Behavior** - Recognizing the reasons behind employee actions is crucial for adjusting organizational structures and incentives [8][9] - **Rule 2: Identify Integrators and Empower Them** - Appointing individuals who can facilitate inter-departmental collaboration is essential for operational efficiency [10][12] - **Rule 3: Decentralize Decision-Making** - Empowering frontline employees to make decisions can enhance responsiveness and customer satisfaction [15][16] - **Rule 4: Create Interdependence** - Designing systems that require departments to collaborate can foster a culture of cooperation [17][18] - **Rule 5: Highlight Future Impact** - Employees should be made aware of how their actions affect the organization as a whole, promoting a sense of responsibility [19][20] - **Rule 6: Reward Collaboration** - Performance metrics should include collaboration efforts to shift the organizational culture towards teamwork [21][22][24]