Strategy: Keep It Simple

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.

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