Simplicity is Good

There is a phrase recurring amongst senior government officials: 'Don't waste a good crisis'. The phrase refers to the fact that, in public services as in business, difficult times can provide a useful opportunity to reflect on the fundamentals; to take some difficult decisions that the good times made easy to postpone.

Whether it is politics, finance or management, tumultuous times can offer a welcome opportunity for a return to simplicity.

Gordon Brown's government needs desperately to get back to its simple core purpose - improving the lot of the people, not playing one upmanship on expenses or maneuvering for the post-Brown era. Some bankers have been stripping away complexity and reminding  themselves of their true and essential role in the economy, and who their customers really are. And managers, in the public and private sectors, need to re-ask themselves the simple questions: why are we in business (what's the mission)? What do we believe in? Where do we want to be? How will we get there?

Being simple and clear on the fundamentals has made it easier for managers to take difficult decisions in a targeted, organised way. And when simplicity is required, some of the basic and enduring management concepts really come into their own: SWOT analysis helps managers in any-sized firm glean a snapshot, internally and externally, at the true position today. Five Forces Analysis still offers an excellent framework for understanding change in the competitive environment. And Resource Based Strategy encourages managers to look afresh at what their organisation's core competencies were, and have become.

These management concepts are essential because they provide often simple but powerful structures for identifying options and taking focused decisions. Better this than the blanket measures (eg, cuts across the board) that can damage even the core strengths of the organisation. The crisis has provided a good opportunity to look afresh at the business, and using some of the most simple management concepts can be an excellent place to start.