Strategy: Keep It Simple

Sept. 21, 2006

Overly complex companies miss revenue opportunities.

New analysis by Bain & Co. shows there's money to made by embracing a corporate philosophy of "less is more." Indeed, the global consulting firm's examination of 75 companies across 12 industries reveals that the lowest-complexity firms grew revenues 1.7 times faster than their peers on average. Further, it shows that complexity holds four times the predictive power for revenue growth that company size does.

Findings suggest the missed revenue opportunities may be a result of overly complex companies making it harder for people to find what they want or for salespeople to match the right product with the right customer.

Industries examined include automobiles, cosmetics, mortgages, computer hardware, medical equipment, fast food and steel.

About the Author

Jill Jusko

Bio: Jill Jusko is executive editor for IndustryWeek. She has been writing about manufacturing operations leadership for more than 20 years. Her coverage spotlights companies that are in pursuit of world-class results in quality, productivity, cost and other benchmarks by implementing the latest continuous improvement and lean/Six-Sigma strategies. Jill also coordinates IndustryWeek’s Best Plants Awards Program, which annually salutes the leading manufacturing facilities in North America.

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