THE COMPLEXITY CRISIS by JOHN L.MARIOTTI;

Author:JOHN L.MARIOTTI;
Language: eng
Format: epub
Tags: epub, ebook
Publisher: John L. Mariotti
Published: 2008-07-15T00:00:00+00:00

Focus Drives Out Complexity

The lessons from the auto industry are so numerous and so obvious that further explanation seems unnecessary. It clearly illustrates the way Alfred Sloan's GM chose to “use it” and make proliferation and purposeful complexity into a competitive advantage. That competitive advantage held up as long as competitors were playing the same game. As the Japanese began to focus on making fewer, better, and more well-equipped models, and changing the styles less often, it upset the competitive apple cart.

When Japanese carmakers Honda and Toyota started playing the “lose it” game, wringing out complexity, simplifying models and variations down to a few, and then making each of them superbly, Sloan's “use it” complexity-based strategy showed its vulnerability. The leadership insularity and inward focus of GM further delayed its understanding of how badly it was being beaten, which postponed any meaningful corrective action for years. The fact that the other American automakers had all followed Sloan's complexity-based strategy made them all vulnerable to this type of competitive attack.

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