Hidden cost of Workplace Complexity

Real problem is not more volume but extra complexity.

When we have more work volume from existing customers, we have to adapt to increase in volume which in turn adds to the resource cost. However, when the customer is new, their is recruiting cost and since their needs are different from the existing customers, the complexity and cost increases.

Even though the new customer is only slightly different than the existing customer, costs go up because the small change also breaks the routine and requires the manager intervention to handle the new requirements.

Stopping the work and starting it again incurs cost. Communication and miscommunication between extra people incurs time drain and hence cost. The gap and cost increases further when the work is put aside for someone else's instructions or for more clarity on customer feedback. All these costs are steep and shocking because most of the time they go unaccounted.

If this communication is across departments, offices and timezones, the result is unimaginably bad.

Increase in work volume, leads to marginal new customers and profit, but add significantly to the managerial complexity.

Management and managers both get a high from increased complexity as it interests and challenges their intellect. Hence, management and managers keep managing and encouraging complexity till it becomes unmanageable and goes completely out of control.

Alas, the cost of complexity is far more than the benefits of increased volume.