More information keeps coming to light regarding the current economic crisis. The more I learn, the more I am convinced that excessive complexity is a major cause of this whole mess. An amazing jumble of increasingly complex debt instruments were invented to keep the debt pyramid climbing. Because the rating agencies didn't understand them and banks were afraid to stop the money train, we plunged headlong over the cliff into the current disaster.
Interestingly enough, all the banks that refused to involve themselves with CBOs and other such "investments" will likely weather the storm well. Because they refused to add complexity to their investment portfolios, and because they ignored the hype, they will be able to grow in the coming years.
We must stop rushing to complexity. We have become convinced that complexity is the answer. The current economic crisis is all the proof I will ever need that complexity is the enemy. Life is complicated enough without adding to it.
Let's make 2009 a year for conquering complexity! Make a point of streamlining your business into a leaner, more efficient company. You'll be glad you did.
If you need help streamlining, give me a call.
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