The Complexity Crisis

Why Too Many Products, Markets & Customers Are Crippling Your Company—And What To Do About it
By John L. Mariotti

Chosen as one of 2008's Best Business Books! AGAIN!

Mariotti's latest interview

John's interview on Supplier Payment Terms appears in two places; considered to be excellent advice by editors. His recent interview with Anita Campbell, Editor of SmallBizTrends.com and the Financial Management section of Small Business Trends

Mariotti Featured on American Express Open Forum

"Are You Ready for a Crisis? You Can Be!" is the latest article that now joins John's earlier post, "An Advisory Board - Best Source of Guidance for Your Business" on American Express' Open Forum, a widely read and highly regarded blog that covers a wide range of topics for business owners.

Mariotti Addresses 8th Annual Global Supply Chain Conference

The conference, held by The Neely School of Business at TCU, was titled MANAGING SUPPLY CHAIN COMPLEXITY-KEYS FOR SUCCESS IN CHALLENGING TIMES. John's presentation, THE COMPLEXITY CRISIS--Conquering Complexity to Focus on Innovation was right on target and very well received by the audience. The conference was held at the Speedway Club of the Texas Motor Speedway in Fort Worth, TX on March 4, 2009. Attendees were a mix of local and regional supply chain managers, senior executives, TCU faculty and top tier students. Morning conference sessions were also attended by members of the North Texas Commission. The breakfast speaker was Richard W. Fisher, President & CEO of the Federal Reserve Bank of Dallas.

Mariotti Appears On MSNBC's "Your Business"

John Mariotti was one of the guest panelists on MSNBC's Your Business recently. The show airs at 7:30AM Sunday and again at 5:30AM on Saturday (this show is scheduled to air on Feb. 8 and Feb. 14). The topic of the show was how a small business who got the "big order" (from Starbucks during its growth era) found it crippling--and what might have been done to prevent--or remedy--that kind of outcome.

The Complexity Crisis Named One Of Best Business Books Of 2008--For Small Businesses

The editors of Small Business Trends chose John Mariotti's book as among their best business books of 2008. This is the second award for The Complexity Crisis, having been chosen previously by Soundview Book Summaries as among 2008's Best Business Books.

John Mariotti speaks to Presidents & CEOs at the American Management Association Course

Mariotti, the featured luncheon speaker on the middle day of the program, shared insights from The Complexity Crisis. He also addressed a series of business-specific issues raised by the diverse class of executives, who traveled from 15 different states and 2 foreign countries. The class was held in Naples, FL. on Dec. 3, 2008.

Read Six Of John's Latest Articles--To Help You Deal With The Current Downturn

The Complexity Crisis

The Problem: Where have all the profits gone?
Businesses must compete in more complex markets than ever before. Companies are seeking growth at double-digit rates in markets that are growing at single-digit rates, or not at all. This quest for growth has led to runaway complexity and proliferation in products, customers, markets, suppliers, services, locations and more. All of these add costs, which go untracked by the best of modern cost systems. All of these fragment management focus, waste time and money and reduce shareholder value. And all of this goes on under the radar of management or board attention. The Complexity Crisis is arguably the most insidious profit drain in modern business.

The Challenge: What can we do about it?
First, recognize that rampant proliferation adds to costs in a manner that goes untracked. Then track it down. Where it adds value, alter processes to accommodate it. Where it doesn't, which is most places, stop it. Reduce or eliminate it. And institute safeguards—systems and metrics—to prevent its unnoticed return. Most of all, find quick and easy ways to describe The Complexity Crisis so it is recognized as a potential profit drain, and managed like the critical business consideration it has become.

The Premise: What Gets Measured, Gets Managed.
To understand the success factors in business is critical. To understand the obstacles that get in the way is equally important. This is the purpose, indeed, the job of management. The tools used that allow management to do this job are metrics and then the actions that result when the metrics expose an area for management attention. The good news—many of the necessary tools already exist, and may be in use. The bad news—complexity is, by its very nature—"complex" and thus it defies many existing measurement techniques.

The Approach: Find it; Fix it; "Use It or Lose It" (and Keep It Simple)
First, recognize what constitutes complexity and the hidden costs it creates; the places it siphons off profit into blind alleys and hidden corners of the business. Next, find it in your business and decide if it creates or destroys value for customers. Then, decide to either " Use It"—change structure and processes to accommodate value-added complexity for competitive advantage, or "Lose It" and reduce or eliminate non-value added complexity wherever it has crept into your business. Finally, institute new metrics and modifications to existing cost and management control systems to choose when to keep it out, and when to capitalize on complexity. Last, and most important: Keep the management of The Complexity Crisis as SIMPLE as possible, so whether you "use it or lose it" you solve the problem and keep it solved.

The Author:
Experienced executive—15 years—President, Huffy Bicycles & Rubbermaid Office Product Group
Accomplished author—8 books and hundreds of columns/articles in leading publications, web sites
Director on six corporate boards, and an advisor to several others
Consultant & keynote speaker: Titleist, Colgate Scotts, Southern Co., Emerson, Deere, etc.
Guest lecturer for several major universities business schools
Contributor, Business—the Ultimate Resource, Encyclopedia of Health Care Management
M. S., M. E. University of Wisconsin, B. S. M. E. Bradley University

John Mariotti's newest book The Complexity Crisis-Why Too Many Products, Markets & Customers Are Crippling Your Company-And What To Do About It IS NOW AVAILABLE FOR ORDERING from (click on your choice) Amazon.com, Barnes & Noble, Books A Million and other leading booksellers or in larger quantities from 800 CEO Read. You can also request the book at leading bookstores nationally, which should be getting it shortly.

The Complexity Crisis, TABLE OF CONTENTS