The increasing complexity of the contemporary world and the unpredictability of economic environments are now major sources of pressure for businesses. In such a context, even partial failure to anticipate events that could affect business – whether favourable or unfavourable – can seriously undermine organisational sustainability.
The so-called ‘80/20’ theory (or Pareto principle), long considered an optimisation tool for balancing effort, investment and results, is becoming less relevant. Organisations now seem compelled to make efforts that far exceed their returns, in a ratio that could be described as “120% effort for 80% benefit “. In this configuration, the return on investment is uncertain, except for certain niche products with high symbolic or emotional value.
Factors of change Several structural and contextual factors explain this development or must be considered:
• Product complexity: rising consumer expectations are forcing companies to step up their research and development efforts. A return to simplicity seems unlikely, although certain generational trends could encourage a rediscovery of fundamentals.
• Shorter life cycles: the sophistication of goods and services leads to accelerated obsolescence, often at odds with sustainability commitments. Volume thus takes precedence over durability.
• Global competition: easy access to international markets is undermining local production, calling for differentiation based on exceptional quality, which is necessarily costly.
• Regulatory framework: the proliferation of standards, laws and obligations is weighing down the time-to-market process and generating substantial costs. Regulatory simplification, although desirable, remains unlikely.
• Judicialization of commercial relations: managing customer dissatisfaction is no longer just a matter of customer service, but now involves significant legal resources, which increases risks and costs.
• Organisational complexity: the overlapping of hierarchical levels and internal control mechanisms leads to a loss of clarity and efficiency. • Structural rationalisation remains a possibility but often comes up against vested interests.
• Lack of awareness of real costs: operational staff are often unaware of the extent of expenditure on certain internal activities that do not add value, leading to recurring waste.
• Training and skills: the emphasis on academic and theoretical sophistication tends to discourage pragmatic approaches. Strengthening basic training, particularly for operational functions, could help reduce costs and improve efficiency.
• Smart outsourcing: Focusing on core activities, accompanied by targeted delegation to specialised service providers, appears to be a relevant strategy. It is not a question of relinquishing control, but of prioritising the art of ‘getting things done’ to refocus on the essentials.
Outlook While some of these points and ideas are obvious, they are still too rarely implemented systematically. However, it is ultimately the ability to simplify, delegate and refocus that will determine how organisations differentiate themselves and their economic strength.
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