By David Brewster August 2006
I meet a lot of managers who express a great desire to simplify their business. Many of these managers understand intuitively that a more simple business would be both more successful and more satisfying to work in. Unfortunately, few managers turn their intention into action. Often they're just not seeing the opportunities.
John Fletcher is a manager. In fact he is the CEO of Coles Myer Limited, one of Australia's largest retailers. His company employs over 190,000 people across hundreds of stores. The group sells everything from bras to brandy, ice cream to iPods. John steers a big, complicated ship.
John Fletcher recently announced a strategy, devised with some outside help, to take Coles into the future. A central platform of this strategy is the intention to simplify the business.
There are essentially three areas on which any business can focus efforts to simplify: ease of understanding, ease of doing and ease of use. John Fletcher's strategy addresses all three of these at once. Let me give you some quick examples.
Easier to Understand
Coles Myer currently operate two supermarket chains: Coles and Bi-Lo. In many cases, these chains operate stores in close proximity to each other. Essentially servicing the same markets, these chains compete against each other, as well as against the 'real' opposition.
The new strategy will see these two chains merged into one. This will make it easier for everyone inside the Coles Myer business to understand who the real 'bad guys' are. In turn, this should make for cleaner, more optimal decision-making.
Easier to Do
John Fletcher recognises that once a strategy has been established, the focus of management should be outwards, i.e. towards helping staff help customers.
The new approach will see less people based in head office and more staff in the stores, where the real action happens. More resources 'on the ground' should make it easier for those already in the stores to do their jobs: serving customers.
Easier to Use
The new Coles strategy also pays attention to the 'small' issues. For example, John Fletcher announced a major purchase of new shopping trolleys: presumably the type that can be pushed in a straight line. This, along with more staff and rationalised branding, will make it easier for customers to 'use' their local Coles supermarket.
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There are other examples of simplification in John Fletcher's new strategy, some of which you can read about in a longer version of this article. But my point is that if a large corporation like Coles Myer can find ways to simplify, then your business - and even your department or unit - can too. You just have to see the opportunities.
©August 2006 Business Simplification