p.11 [JLJ - capitalization changed] Protecting/preserving the past and perfecting the present does not equal
finding the future.
p.14 In essence, [management guru Peter] Drucker said that clarity of focus is critical in allocating resources,
which is the essential job of management. Complexity destroys focus, and thus, is the natural enemy of focused resource
allocation and good management.
p.15 The hard part of innovation is sorting out which ideas should make the cut, and then undertaking the
job of successfully commercializing them.
p.45,46,47 There are two steps to solving any problem: 1) Define the problem; 2) Solve the problem... An
appropriate pre-problem-solving step might be to "understand the problem." ... The opportunity is to understand what we are
doing and devise ways to make complex things simpler or make that complexity create competitive advantage.
p.50,51 Now you can - and should - strive to manage with near real-time information. Solving
problems is so much easier if you can "catch the culprits in the act" and take remedial action on the spot... Ask "how can
we" and start solving complexity-related waste faster and faster... The longer you let these problems accumulate and wait
for month-end or quarter-end results to begin solving them, the more of your precious time and money complexity-based problems
will have consumed.
p.71-72 Does this mean you shouldn't innovate? Of course not... What it means is that you need to
understand what is happening and create awareness and visibility of complexity at work. Once that has been done,
solutions emerge, many of which have been amply tested with results that are almost astonishingly good.
p.151 "The first step to getting the things you want out of life is this: Decide what you want." -Ben Stein,
actor, writer, and academic
p.152 There is a way to use creativity and complexity where it yields a strategic competitive advantage.
Instead of driving out complexity... a company can profitably compete on complexity as a differentiator.
This must be accomplished by designing the company structure, processes, and culture to capitalize on complexity
p.154 If a company is to contain the growth of complexity without stifling innovation, it must have
a crystal-clear focus on how it wishes to compete, and what it must do to succeed in that approach. Complexity is
a messy problem to clean up after the fact. Like capturing quality defects via inspection instead of prevention, the crime
has already been committed, and all that is possible is damage control.
p.159 "It must be considered that there is nothing more difficult to carry out, nor more doubtful of success,
nor more dangerous to handle, than to initiate a new order of things." -Niccolo Machiavelli
p.159 When tackling any complex problem, it's helpful to have a framework for thought, lest you
lose your way in this tangle of complexity. The best framework for thought follows a sequence through five distinct,
but related, dimensions of a business - purpose, structure, processes, relationships, and culture. It is
within those dimensions of the business that the strategy and executional foundation resides.
p.176 The solutions to manage complexity will be different for each situation. The best
solution, above all, is to recognize and contain complexity before it grows and spreads. Carefully consider the structures,
processes, cultures, and relationships best suited to manage the causes of complexity. If this is done correctly, complexity's
problems can be turned into competitive advantages.
p.194 Forecasts are predictions about the future and, as such, are destined to be wrong.
p.202 In this chapter, I have discussed at length how to create new measurements, but mostly using part
of old measuring techniques applied in new ways to new forms of complexity. I encourage readers to invent their own
new metrics... The key point to take away is the importance of recognizing how and where complexity causes costs,
and finding ways to quantify it - to assign the costs caused by complexity to the root causes. Once these complexity costs
are recognized, steps can be taken to identify and address root causes of the complexity. The goal is to reduce complexity,
to control it, and keep it from recurring - or to use it for competitive advantage
p.219 What gets measured gets managed. The new metrics presented throughout this book help
managers understand the likely consequences of their decisions and actions before they decide and take action. The
true test of managers occurs when they understand how to quantify the likely outcomes of decisions prior to making them.
p.227 Wasteful complexity is incurred when this focus is not clear. Valuable resources are wasted on work
that does not create value from the perspective of the customer. Similarly, the company's structure, processes, culture, and
relationships must be focused on doing those things that will create the right kind of value.
p.228 1. Data + Organization = Information
2. Information + Insight = Knowledge
3. Knowledge + Experience = Wisdom
4. Wisdom + Imagination = Genius
