Of course, managers must be mindful that not all complexity is equally manageable, and proceed accordingly (Exhibit 2).
Exhibit 2: Types of complexity
Imposed complexity includes laws, industry regulations, and interventions by nongovernmental organizations. It is not typically manageable by companies.
Inherent complexity is intrinsic to the business, and can only be jettisoned by exiting a portion of the business.
Designed complexity results from choices about where the business operates, what it sells, to whom, and how. Companies can remove it, but this could mean simplifying valuable wrinkles in their business model.
Unnecessary complexity arises from growing misalignment between the needs of the organization and the processes supporting it. It is easily managed once identified.