Governing complexity is equivalent to continuously finding the right balance between internal and external variety and diversification. In most companies, complexity is everyone’s problem and no one’s responsibility. Nevertheless, managers are responsible for defining complexity in terms of metrics (what), responsibilities (who) and processes (how). The purpose of the governance process is to maximize True Profitability by minimizing complexity.
Luzio helps organizations establish effective complexity governance, to control what enters and what leaves the offering, using product design methods that foster standardization and modularity, and maintaining a healthy pipeline of profit-improvement projects. Successful governance does not need additional overhead to work. We work hard to embed the new ways of working within the existing functions and processes.
Luzio also assists in creating diversification strategies to introduce new products and services efficiently. Products that have the highest levels of similarity with the high-volume components in your offering. We also help organizations to design effective outsourcing programs to expand the offering without the complexity. We call this approach "smart variety".