Tag Archives: Harvard Business Review

Yves Morieux: Smart Simplicity

Yves Morieux speaking on stage.A wonderful discovery today, “As work gets more complex, 6 rules to simplify,” a TED Talk by Yves Morieux. Morieux is a senior partner in the Washington DC office of the Boston Consulting Group (BCG)  and director of the BCG Institute for Organization. He studies how changes in structure can improve motivation for employees.

“Smart Simplicity” uses six key rules that encourage cooperation to solve long-term problems. Not by just reducing costs and increasing profit, but also by maximizing engagement in all levels of the organization.

The focus of Morieux’s work is very compatible with sociocracy. He stresses collaboration over rule-making, self-organization over central authority,  and effective action over complex, multi-layered planning.

A 350˚ Increase in Complexity

In his TED Talk, Morieux first critiques the increasingly complex designs for business plans that might have 5 headings with 25 subheadings under each one, resulting in 125 cogent topics, each with numerous subcategories. Combined with an equally complicated workflow and organizational structure chart, it produces a brilliant, mind-numbing, and wholly unimplementable plan. Impressive in good graphics but hopeless in practice.

The need for an emphasis on smart simplicity is supported by a study done by BCG that reported:

We’ve created an “index of complicatedness,” based on surveys of more than 100 U.S. and European listed companies, which measures just how big the problem is.The survey results show that over the past 15 years, the amount of procedures, vertical layers, interface structures, coordination bodies, and decision approvals needed in each of those firms has increased by anywhere from 50% to 350%.

A wonderful part of the video is when he recites an example of such business plans with their myriad of meaningless words. He has the memorization skills of an actor and the facility of a professional fast talker so he got himself through it without notes and within 12 minutes. If he had a teleprompter, speaking that fast would have burned out its circuits.

Feedback Loops & Decentralization

Morieux emphasizes that self-organization is dependent on feedback loops to make decentralization work. In a Harvard Business Review article from 2011, he says:

There are six smart rules. The first three involve enabling—providing the information needed to understand where the problems are and empowering the right people to make good choices. The second three involve impelling—motivating people to apply all their abilities and to cooperate, thanks to feedback loops that expose them as directly as possible to the consequences of their actions. The idea is to make finding solutions to complex performance requirements far more attractive than disengagement, ducking cooperation, or finger-pointing. When the right feedback loops are in place, cumbersome alignment mechanisms, ranging from compliance metrics to the proliferation of committees—can be eliminated, along with their costs, and employees find solutions that create more value.

This is has been an important point for theories of circular organization since the 1970s and for understanding sociocracy. Feedback loops are necessary to implement decentralization and impelling cooperation and self-organization.

Morieux’s Smart Rules

  • Rule 1: Improve Understanding of What Coworkers Do
  • Rule 2: Reinforce the People Who Are Integrators
  • Rule 3: Expand the Amount of Power Available
  • Rule 4: Increase the Need for Reciprocity
  • Rule 5: Make Employees Feel the Shadow of the Future
  • Rule 6: Put the Blame on the Uncooperative

For More: Two Readings

From the Harvard Business Review,
“Smart Rules: Six Ways to Get People to Solve Problems Without You.” September 2011.

Book Cover: Six Simple RulesMorieux’s book at Amazon: Six Simple Rules: How to Manage Complexity without Getting Complicated. 2014

There is also a French edition with a much better title: Smart Simplicity: Six règles pour gérer la complexité sans devenir compliqué (2014).

Morieux divides his time between leading research and advising senior executives of multinational corporations and public-sector entities in the United States, Europe, and Asia-Pacific on their strategies and organizational transformations. He has been featured in articles on organizational evolution in Harvard Business Review, The Economist, The Wall Street Journal, Fast Company, and Le Monde.

The Holes in Holacracy

An informed article by “Schumpeter” (no first name available), The Holes in Holacracy, included in the print edition as well as online. Schumpeter’s points are really about new branded methods failing.  They are gone in 10 years. (Sociocracy on which Holacracy is based has not failed in 40 years.)

EVERY so often a company emerges from the herd to be lauded as the embodiment of leading-edge management thinking. Think of Toyota and its lean manufacturing system, say, or GE and Six Sigma excellence. The latest candidate for apotheosis is Zappos, an online vendor of shoes and clothes (owned by Amazon), which believes that happy workers breed happy customers. Tony Hsieh, its boss, said last year that he will turn the firm into a “holacracy”, replacing its hierarchy with a more democratic system of overlapping, self-organising teams. Until Zappos embraced it, no big company had taken holacracy seriously. Indeed, not all of Zappos’ 1,500-strong workforce are convinced that it can work…

Tony Hsieh, CEO Zappos. Photo credit: Wikipedia.
Tony Hsieh, CEO Zappos. Photo credit: Wikipedia.

Will conquering Zappos help holacracy thrive in the brutally competitive market for management ideas? There is good reason to be skeptical. “Nine-tenths of the approximately 100 branded management ideas I’ve studied lost their popularity within a decade or so,” wrote Julian Birkinshaw of London Business School in the May issue of the Harvard Business Review. Among the latest cast-offs, it seems, is Google’s much-admired “20% time”, in which workers got a day a week to work on their own projects; the company is reported to be quietly sidelining it.