PARALYSIS BY (OVER) ANALYSIS

As many of the major New Zealand corporates become more international and global in approach and size, they will need to carefully watch they don’t catch the international corporate disease…………analyse every facet of the business or any challenge (no matter how large or small) to death!

Over the last three to five years in particular, we at Ysker have observed an increasing number of highly skilled and talented executives opting out of the large corporate’s at a significantly younger age than was previously the case. The primary cause stated for this in a high number of cases is that they believe their ability to be effective is being severely eroded due to the increasing emphasis on analysis, constant review, short term financial focus to the detriment of long term strategic benefit and the associated time spent in non-productive meetings, forums etc. The increased emphasis on these activities, has effectively taken many of these talented leaders away from the productive, result-producing functions they were employed to perform which in turn removes the challenge and fun frequently resulting in what I call “terminal frustration”.

A common thread in any discussion with these executives is that the amount of wasted time, resources and energy spent “over-analysing” (even the most simple of) situations/tasks is more often than not, disproportionate to any perceived benefit which may accrue. Often, this analysis involves data being broken down into complex reports, flow-charts and diagrammatics, delving into “minutiae” which, given the complexity, almost requires a professional analyst or consultant to interpret. Such methodologies are frequently expressed in terms foreign to the day-to-day business language of the company, and in particular, to those at the functional level – those who are responsible for making them work.

The increasing numbers of new and often “fashionable” business methodologies (which in the main are simply re-packaged ideas which have been successful in the past) are eagerly embraced by younger executives who weren’t born, or were too young at the time the idea or methodology came around the first time…or by older executives suffering from Alzheimer’s disease!

I am a great advocate of the need for a business to constantly review its business processes, practices/approaches and to continue the learning and development within with a view to improving efficiency, output, profitability and importantly service to customers.

I also feel strongly however, that there is a real and increasing danger that the commonly stated desire towards keeping business simple, is currently being reversed.

It has been said that in large international corporate structures, some executives spend up to 40% or more of their time protecting their patch. Imagine the effect it would have on productivity, performance and profitability and above all else, the in house working environment/culture, if only half of that wasted energy and points scoring were eliminated, or harnessed? Particularly if it were added to the resource/effort saved by reducing the amount of time lost sitting in meetings staring at graphs and coming to grips with endless analysis. (“Version 24 has this slight change in emphasis on……….” so it goes on!)

Interesting enough it has been my own experience over the years, that our most successful clients have simple and clearly expressed business objectives, sound business plans, clearly defined strategic plans and real focus. Of course they know their key business ratios backwards, that is fundamental to the success of any business, however top businesses and the best executives I know, make a point of keeping the emphasis on analysis in perspective and maintain an eye on the “Big Picture”.

They also place a very strong emphasis on their ongoing understanding of and meeting client’s real needs and expectations, team development, clear/simple internal communication, empowerment and the involvement of people at all levels to make it happen. Their executives and managers spend their time doing what they are good at. Yes they do analyse what is going on in their business and trading environment, but, they concentrate on what is truly important, rather than waste time on what isn’t. After all, isn’t keeping things simple and having some fun whilst doing so what profitable business is all about?

Barry T Knight