Innovate Or Die: There Is No Workaround
Innovate Or Die: There Is No Workaround
The Boston Consulting Group (BCG) in 2019, highlight a concerning trend of increasing complexity in the business environment, particularly for small and medium-sized enterprises (SMBs). The findings indicate that business complexity has grown 6 times over the past 6 years, while SMBs have experienced a significant increase in complicatedness, measured by structures, processes, committees, decision-making forums, and systems. An it is increasing by a factor of 35%. This complexity can have several negative consequences for SMBs:
- Productivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.ivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.ivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.
- Innovation Bottlenecks: The complicatedness can make it difficult for SMBs to foster innovation within their workforce. When employees are burdened with excessive layers of bureaucracy and the lack of decision-making understanding of innovative approach, it can stifle creativity and slow down the implementation of new ideas.
- Workforce Disengagement: The business labyrinth created by increased complicatedness can disengage and demotivate the workforce. With excessive structures and processes, employees may feel a lack of autonomy and empowerment, leading to decreased job satisfaction and lower levels of engagement.
To address these challenges, it is important for SMB leaders to recognise the impact of the increasing complexity and take steps to simplify and streamline their business. This may involve reevaluating and simplifying their roles, processes and systems, empowering employees to make decisions, and fostering a culture of innovation and continuous improvement. Additionally, leveraging technology and digital tools can help automate routine tasks, improve communication, and increase efficiency within SMBs.