Helps readers find out why the trick to outperforming their competition and staying ahead of the curve in a customer-centric business environment is achieving the optimum levels of complexity in their products, services, and operations. This book includes tools that let you quantify and pinpoint complexity in your business.

PrefacePart I Complexity: The Silent Killer of Profits and GrowthChapter 1 The Overwhelming Case for Conquering ComplexityA Tale of Two CompaniesThe Three Rules of ComplexityComplexity Rule #1: Eliminate complexity that customers will not pay forCase #1: The story of Southwest Airlines vs. American AirlinesComplexity Rule #2: Exploit the complexity customers will pay forCase #2: Capital One vs. MBNA, Bank of America, et alComplexity Rule #3: Minimize the costs of complexity you offerCase #3: The real secret of ToyotaCase #4: Experience bought, not taughtFinding the Right Combination of External and Internal ComplexityThe Complexity Value PropositionConclusion: The competitive advantage of conquering complexityChapter 2 Exposing the Silent Killer: How (and how much) complexity drains time and resources in your businessHow Complexity Silently Kills Profits and Drains ResourcesProcess Cycle Efficiency: The foundation for quantifying complexityQuantifying What Affects PCE: The Complexity EquationHow Variation in Mix Destroys PCE and ProfitWhat Lever to Pull?: Advice on improving PCEThe Power of NumbersConclusionChapter 3 How Complexity Slows the Flow of Critical InformationInformation Flow Complexity = Too Long to Reach Decision MakersComplexity Creates Noise in Information SystemsDell and Compaq: Better to be fast than firstHow Does Dell Achieve Fast Information Flow?Conclusion: Cumulative effect of complexity on strategic decision makingChapter 4 How Conquering Complexity Drives Shareholder ValueThe Challenges of Accounting for ComplexityMaking Decisions That Benefit Shareholders: Earnings Per Share vs. Economic ProfitKey Lessons About EP and GrowthThe Complexity Imperative in Fast MarketsThe Links between Complexity and ValueConclusionChapter 5 Complexity as a Strategic WeaponSix Precepts For Strategic Use of ComplexityPrecept #1: Customers define valuePrecept #2: The biggest gains from conquering complexity come from step-change improvementsPrecept #3: Focus on what matters most—100% of your value creation probably resides in only 20% to 50% of offeringsPrecept #4: Think value share instead of market sharePrecept #5: Growth results from value-driven application of finite resourcesPrecept #6: First eliminate offerings that can never generate positive Economic Profit, then attack internal complexityALDI International: A case study in strategic complexityEating Away the CompetitionALDI’s Secret of Success: Eternal watch against complexityConclusion (and a look ahead)Part II Complexity Analysis: Quantifying and Prioritizing Your Complexity OpportunitiesExecutive Overview of Complexity AnalysisChapter 6 Identify Strategic Complexity Targets (Complexity Analysis Phase 1)Overview of Target SelectionStep 1: Identify areas of greatest value-at-stakeData You’ll Need to Identify Value-at-StakeInterpreting Economic ProfitGetting More From Your Waterfall ChartStep 2: Analyze the strategic position of selected value-at-stake unitsData You’ll Need to Evaluate Strategic PositionUsing and Interpreting Strategic Position DataMining Market Profitability and Competitive Position DataOutcome of Strategic AnalysisStep 3: Develop a Complexity Profile of selected business unitsData You’ll Need for a Complexity ProfileCharting and Interpreting a Complexity ProfileWhat You Can Learn From a Complexity ProfileSummarizing Phase 1 Lessons: Sources of exploitable advantageConclusionChapter 7 Map & Quantify the Impact of Complexity (Complexity Analysis Phase 2)Overview of Mapping Complexity & Quantifying ImpactStep 4: Identify the strategic value of your core processesEGI Case Study, Part 1: Core Process AnalysisStep 5:. Determine family groupingsEGI Case Study, Part 2: Identifying product familiesStep 6: Create a Complexity Value Stream MapEGI Case Study, Part 3: CVSMStep 7: Computing PCE baselinesData You’ll Need to Compute PCE BaselinesCalculating PCE Baselines: EGI exampleConclusionChapter 8 Build a Complexity Value Agenda (Complexity Analysis Phase 3)Overview of Developing a Complexity Value AgendaStep 8: Calculate EP% for offeringsData You’ll Need to Calculate EP% by OfferingStep 9: Perform a substructure analysisData You’ll Need to Perform a Substructure AnalysisInterpreting a Substructure AnalysisStep 10: Calculate PCE Destruction and complete a Complexity MatrixData You’ll Need for PCE Destruction and the Complexity MatrixCompleting and Interpreting a Complexity MatrixStep 11: Evaluate potential impact of process or offering changesPath A: Value creation from process improvementPath B: Value creation from offering improvementAdding Numbers to the Options: What-If analyses with the Complexity EquationStep 12: Select options and build business cases for selected opportunitiesStep 13: Create a Complexity Value Agenda (and Execute!)The EGI Case Study: Prioritizing and Building a Value AgendaConclusionPart III Implementing Complexity AgendasChapter 9 Simplifying Product and Service Lines Going for Big Gains in Economic ProfitThe Pricing LeverSimplifying Product or Service Configurations: Exploiting naturally occurring configurationsAdjusting Your Customer PortfolioOptions for Deletion of a Product or ServiceManaging DeletionsRoadblocks to SimplificationConclusion: Biting the simplification bulletChapter 10 Finding the Complexity That Customers ValueA Case Study in Choice ExplosionWhat Customers Want vs. What They ValueTechnique #1: Key Buying Factor analysisTechnique #2: Kano analysisTechnique #3: Functional analysisTechnique #4: Conjoint analysisConclusion: Considering complexity when developing customer-focused strategiesChapter 11 Avoiding the Big Costs Using Complexity Principles to Simplify Product DesignsSimplicity Principle #1: Emphasize commonalityA. Commonality Through ModularizationB. Commonality Through PlatformsCase Study: IPM’s applications of platform thinkingBenefits of CommonalitySimplicity Principle #2: Exploit design reuse/recyclingSimplicity Principle #3: Design with the life cycle in mindBenefits of Life Cycle Planning and ExecutionExample: Simplifying brake design in bikesImproving Design-to-Market Cycle TimeConclusion: Start with the end in mindChapter 12 Achieving Service and Process Simplicity Optimizing work flow with Lean, Six Sigma, and complexity toolsComplexity and WasteApproach #1: Exploit commonality to reduce duplicative effortApproach #2: Ensure standardization of tasksApproach #3: Eliminate the delays and impact of task startup and task switchingThe Four Step Rapid Setup MethodConclusionChapter 13 Using Information Technology to Deliver Complexity at Lower CostUsing IT to Deliver Variety (Good Complexity) at Low CostThe Cost of IT ComplexityFighting Back Against IT ComplexityPrinciple #1: Don’t rely on IT to fix a broken process (it won’t!)Principle #2: Reduce the complexity in your systems architecture (because your customers won’t pay for it!)Principle #3: Outsource complexity where strategically desirablePrinciple #4: Use modularity in your hardware and softwareConclusionPart IV High-Return Investments When Conquering ComplexityChapter 14 Creating a Culture that Can Conquer ComplexityCultural Ingredient #1: Believe conquering complexity is an imperativeCultural Ingredient #2: Ongoing executive engagementCultural Ingredient #3: Target high value-at-stake opportunitiesCultural Ingredient #4: Dedicate organizational resourcesCultural Ingredient #5: Provide an analytical methodology and toolsetCultural Ingredient #6: Align metrics, incentives, policies with complexity goalsCultural Ingredient #7: Nurture close customer connectionsConclusionChapter 15 Conquering Complexity in Your Product and Service Value ChainValue Chain Configuration: Extracting the full value from conquering complexityStrategic Sourcing: How complexity drives the make-or-buy decisionManaging Upstream Complexity: Strategic supplier segmentationPlanning for Value Chain ChangesDownstream Complexity: Smashing the retail paradigmsConclusionChapter 16 Applying Complexity Principles to Mergers and AcquisitionsComplexity Due DiligenceWin the Deal, Lose the SynergiesAddressing Complexity Can Accelerate IntegrationMaking Complexity Due Diligence (and M&A) a Repeatable ProcessConclusionAppendixIndex

"The winners and losers in the next decade...may well be separated by a single factor: those that conquer complexity and those that do not." - Michael L. George and Stephen A. Wilson Here's a guarantee: Somewhere in your business, there is too much complexity. It erodes profitability, impedes productivity, confuses customers, and adds non-recoverable costs that can kill you in the marketplace. But that's only half the equation: You may also be losing out by having too little of the complexity where it counts--in the products, services, and options you offer to customers. Customers call this value-added complexity "variety", "options", or "customization". Either way, as you'll discover in Conquering Complexity in Your Business, the impact of complexity is enormous in terms of lost profit and missed growth opportunities. In this breakthrough book from Michael L. George and Stephen A. Wilson, you'll find out why the trick to outperforming your competition and staying ahead of the curve in today's highly customer-centric business environment is achieving the optimum levels of complexity in your products, services, and operations. Best of all, for the first time in print, you'll find powerful tools that will let you quantify and pinpoint complexity in your business. You'll also find strategies for conquering that complexity and dramatically increasing productivity, profits and market share. Conquering Complexity in Your Business is packed with real-world practical advice and guidance from both a strategic and tactical perspective. With the help of fascinating and instructive in-depth case studies from Dell, Capital One, Southwest Airlines, Wal-Mart, Toyota, Scania, Lockheed Martin, Aldi, and other companies that have conquered complexity to become world leaders in their industries, the authors show you how to Strategically identify the offering and process complexity in your business Quantify the impact of that complexity Decide which complexity you want to keep to drive growth and which to eliminate to cut costs Select and implement specific operational approaches to eliminate different kinds of complexity Sustain an environment with just the right balance of complexity your company needs to maximize productivity and profits Don't let complexity impose a ceiling on your profits and growth. Read Conquering Complexity in Your Business and learn how to serve your customers more effectively, dominate your competition, and delight your shareholders. "This is an important book that should be read by every CEO. Conquering Complexity is not just about reducing costs; it's fundamentally about growing revenues and creating economic value by serving your customers more effectively."--Lou Giuliano, Chairman, President and CEO, ITT Industries "Complexity creeps into organizations incrementally, and each additional decision is, by itself, almost always justifiable. But faced with a crisis, many companies, including American Airlines, have chosen a head-on approach to removing complexity--we simply could not afford to do otherwise."--Gerard J. Arpey, President and CEO, AMR Corporation and American Airlines "As we tackle the most resistant issues in the company, it is clear that complexity is a key causal. The challenge is getting our arms around the cost of complexity. Being able to size the opportunity creates a compelling call to action."--Anne M. Mulcahy, Chairman and CEO, Xerox Corporation "It is critical that the authors' study and analysis gets outs to a wider audience to explain how complexity occurs and more importantly, how to both attack it and prevent it."--Chris Cool, Vice President, Northrup-Grumman Corporation Many managers and executives intuitively understand that the benefits from conquering complexity can be huge. But only a handful worldwide know to how to precisely measure, manage, and profit from complexity. Now, with Conquering Complexity in Your Business, a breakthrough book from complexity gurus Michael L. George and Stephen A. Wilson, all of that changes. Learn how to break through the ceiling on your company's profits and growth. For more information about Conquering Complexity, please visit our website at www.georgegroup.com

"The cost of complexity isn't offset by what you can charge. Complexity creates opportunities for you to fail your customer." (American Airlines President Gerard Arpey, Wall Street Journal, 9-17-2002)"