The majority of survey respondents say these risks increased over the past 12 months, yet only 37% of respondents (and 53% of complexity masters) say they are prepared to a large extent. The central question at this point is, What targeted interventions will address the root causes of the performance issues and thereby eliminate complicatedness? Increase reciprocity. Retaining and attracting qualified procurement talent is a challenge, but talent models are rapidly changing, as are compliance concerns related to contingent workers and a global workforce. Notes: Classically, companies attack problems by jumping right in and quickly crafting solutions on the basis of accumulated experience and judgment. Mastering new technology, understanding scientific discoveries, even learning how to play an instrument well. (See Exhibit 2.). Certain services may not be available to attest clients under the rules and regulations of public accounting. Six simpleâand smartârules help companies make adjustments to the context in a way that ensures that the desired behaviors become logical in key situations. And itâs not only senior management that recognizes company shortcomings: employees deep in the organization tell us about their frustrations with meetings that are overcrowded with attendees who have no clearly relevant role, too many initiatives going on in parallel, little recognition from supervisors for results achieved, lack of clarity regarding decision rights, and an inability to get things done quickly. Every fortnight I curate some of the observations and insights that were shared on social media. And, over the course of four years, a large European bank thatâafter ten years of failed effortsâembraced simplification amid an increasingly competitive business environment was able to strip $250 million from its costs. This laid the foundation for the harmonization of processes and ultimately led to a significant reduction in head count. An error has occurred, please try again later. In short, mastering procurement complexity means delivering value in lockstep with the business. In an industry economically ravaged by COVID-19, Marriott International faces tremendous challenges. Each layer defined the context of the next layer, creating an ecosystem of cooperation, growth, and efficiency. This publication references the work of Herbert A. Simon, who, in 1978, was awarded the Nobel Prize in economics for his âpioneering research into decision-making processes within economic organizations.â Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (âDTTLâ), its network of member firms, and their related entities. This step typically includes a âcomplicatedness assessment,â which examines the eight context dimensions to identify the symptoms and level of complicatedness, as well as benchmarking against other organizations to establish a baseline of the system at work in the company. An analysis of behaviors is done through socio-organizational interviews with the key stakeholders. The fourth step focuses on implementing the solutions and ensuring that they are sustainable and can be improved continually over time. Problems are nearly always deeply rooted in various interlinked elements of the system at work and can, therefore, be solved only by combining several interventions. Read our Mastering Logistics Complexity Whitepaper to discover more about how technology can turn complexity into opportunity and the types of benefits that can be expected. 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