Monday, 12 October 2015

Keep Business Simple.

Ockham's Razor states that all things being equal, the simplest and most direct solution with the fewest number of steps is usually the correct answer to any problem. It's a powerful philosophy named after William of Ockham who popularized the strategy centuries ago. When I find myself at a stalemate, I often think of this age-old principle.

The problem is that business leaders and entrepreneurs like to pride themselves on their originality, intelligence and problem-solving skills. The thought of deciding on the "simplest" solution or the "too obvious" choice causes otherwise smart decision makers to bypass the right option.

Most of us are guilty of needlessly complicating business with complex spreadsheets, fancy jargon or far-sighted business plans. Here are six examples showing why Ockham’s Razor can work for you:

1. Everyone understands it.

The beauty of a simple solution is that it won't be difficult for your team members, throughout all layers of your organization, to understand the vision. The more complicated the directive, the greater the jeopardy that the message will be lost in translation as it disseminates from the top down. A clear, concise vision that can be boiled down and communicated directly maximizes your chances of everyone "getting it." This is half the battle.

4. It's easier to duplicate a simple model than a complex one.

The more things that have to happen right for your business to succeed, the greater the risk. As Jim Collins wrote in Good to Great, enduring, outstanding companies focus on what drives their economic engines, a single ratio that highlights a single 'X' that will produce the highest return. Companies able to grow quickly are ones who have a clear understanding of what drives them. They also can replicate their successes quickly and efficiently.

5. With direct initiatives, results are easier to measure.

Overly complex strategies not only are hard to implement, they  often make it more difficult to gauge results The most successful companies have a straightforward direction, along with clear and simple measuring sticks that keep them on track.

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