The race for simplicity

摘要

As the oil industry continues to become more dynamic, the world's petroleum companies will need to simplify their businesses so they can increase profitability and reduce risk, Earlier this year, Warwick Business School and consulting firm Simplicity published the Global Simplicity Index (GSI) - an academic study quantifying the true financial impact of various types of complexity on company profits. The GSI found that, on average, complexity is costing businesses over 10% of their profits, equivalent to $237bn of EBITDA for the Forbes top 200 firms. This complexity tends to manifest itself in over-complicated product portfolios, organisation designs, complex business processes, strategies and management behaviours.