Sunday, January 11, 2009

The problem of clutter....

In the corporate world, the cost of complexity and clutter is underestimated. It is captured in various cost lines, in various forms of inefficiencies that show up and the sub optimal decisions which are made...

Let me give you an example : one of my previous clients had manufacturing plants in nearly each state. The dynamics of the product were such and also the tax laws had necessitated that but then the contracts had a take or pay clause with contract manufacturers, so to avoid paying for products not taken, managers fear saying that you see, they would produce and then pay and transport the product half way across the country, when the closest plant was in the next town. And since you could not transport half a truck (the SKU had low volume) they would also transport a SKU which was in the made in the plant itself!!! The managerial bandwidth that went away in managing all this nonsense was so high, by the time we were trying to unravel it, no one knew why any of those activities were even happening.....so complexity had its costs and led to lack of clarity in thought process...

Why am I rambling? right now I am feeling the clutter killing my thought process...multiple streams of flux is killing my bandwidth and that leaves a lot to be desired in the end result...blogging is already suffering, i mostly snap and walk around dazed....need to declutter soon....results will follow...Its time to revisit fundamentals and ask hard questions from self....

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