Browse our Research Library: Mark Gottfredson and Keith Aspinall

In this article Mark Gottfredson and Keith Aspinall talk about managing complexity.  Backing new innovation is easy because on the surface it adds considerable value to the company.  Upon a deeper look, the added complexity of these new innovations can add costs to the production line that outweigh the additional revenue.  Complexity creeps into a business through bad economic data, overoptimistic sales expectations and entrenched managerial assumptions.  Because of this, complexity causes business’ profits to flat line or even erode.  Once a company is able to balance on its innovation fulcrum, making sure it’s production costs of innovation don’t out weigh the added revenue, its next job is to stay there.