It seems like the managerial refrain, “Do more with less” is never ending. This mantra has been part of the business lexicon for decades and becomes back in vogue with every Reduction in Force (RIF).
Technology is often seen as the ‘gap filler’ when the number of humans involved in processes are decreased. Technology as ‘enablers’ is another managerial gospel.
The world is heading into the Digitalization era, whereby the enterprise may capture significant shareholder from emerging information technologies, i.e., AI, IoT, etc. These are important decisions that may have far ranging consequences for the organization and its ecosystem.
However, are these two approaches aligned with good governance and practices? Perhaps, but management is well advised to assess the Relative Risk before implementing both actions simultaneously.
The ‘Doing More With Less In An Increasingly Complex Environment’ chart is dynamic and will provide a good visualization of the potential impact of these changes. You are invited to ‘What If’ the model and develop various scenarios to maximize your operational excellence.
For this model, over a five-year cycle, the following three input and five output variables may act on decisions:
- Rate of Complexity Growth—Input variable where the modeler can select the rate of growth of organizational complexity, i.e., digitalization, globalization, mergers & acquisitions etc. Generally, increased complexity is seen as necessary for future organizational value.
- Cumulative Complexity Growth Rate—Calculated cumulative rate of complexity growth over the period of the model.
- Change in Available Resources—Input variable where the modeler can either increase or decrease the number of (human) resources available to the company. This may include contractors and other ecosystem personnel if applicable. It is expected that typically, these resources will decrease over time.
- Cumulative Change in Available Resources—Calculated change in resource availability h over the period of the model.
- Potential Economic Value—Calculated difference between the Cumulative Complexity Growth Rate (value) and Change in Available Resources (reduction in costs)
- Value From Enabling Technology—Input variable where the modeler can ‘what if’ value that can be obtained from technology initiatives. This data can be taken from a variety of sources including the output of our Economic Value Proposition Matrix®
- Cumulative Value From Enabling Technology—Calculated cumulative value from technology initiatives.
- Relative Risk—Adjusted for the impact of Enabling Technology, this the ratio of the Cumulative Complexity Growth Rate and Cumulative Change in Available Resources
The purpose is to provide management insight into the risk associated with the reduction of personnel in the face of our increasing complex environment. Please be advised that this simple model does not take into consideration the quality of available resources, the level of complexity or the applicability of enabling technology. It is only s high level assessment, the results of which may require addition thought and assessment.
Using the Model
Input variables are in blue font and can be changed as desired. Additional supporting materials include our QuickStart Guide. Finally, for more information, users are invited to complete the form in the Your Solution tab.
Due to their size and complexity, models and checklists are best viewed on a large screen.
Disclaimer
These models and checklist are provided ‘As Is’ and the firm nor its principals are responsible for their accuracy and/or applicability. Their use many provide guidance only into various tasks; however, they should not be solely relied on for decision making.