DEALING WITH COMPLICATION

        Actually, complication management is capable of being described as an attempt to decoupling the internal from the external variety. Several new possibilities can be unlocked by complication but it can quite expensive as well. Flexibility is permitted by in a specific standard of structures of the process which can be characterized when a change occurs in the environment and results in an advantage in terms of competition (Maurer, 2007). It can be said that the objective of several companies is all about aligning complication with environmental requirements. Schuh (2005) explains that optimal complication is achieved when the external complication is equal to the internal one. It is significant to adjust the imbalance (Schuh, 2005). That is why, the capability of steering, adjusting, and controlling complication is equivalent to its effective management (Malik, 2007). It is critical to note that effective management needs a broader view of system performance and rules (Malik, 2007).

        Handling complication is a consistent procedure that determines unpredicted developments in all phases of the process. For maintaining consistency, management of complication must be set up in the division of strategic management. Here, products have to be standardized and defined for a precise variant setup (Franke et al., 2002). Projects, on an operational standard, have to consider following factors: prioritization, robust planning, limitation in different parts, the build-up of suppliers, early documentation, limitations, component strategies, and target definition (Franke et al., 2002).

        A survey was conducted by Schuh (2005) on various companies and identified that if following requirements or conditions are clearly set up, complication can be dealt with by an organization in a more effective manner:

        Clear simplification of consumers along with their necessities. It means a combination of both small and big consumers and standard products which have the capability of being adapted to different needs of consumers

        Strategic planning of the variety of a project and its cycle of life; though an increment will occur in variants with a regular strategic structuring and planning

Strict transparency of costs related to the project and influence on the value chain; offer proposals will be influenced by the process costs

In the organization, active management of complication belongs to the usual activities of operative management

        Even though the maintenance of simplicity is efficient in some specific fields, it can also cause collapse and crises. Malik (2007) says that it is quite effective to handle complication as it seems to result in an environment’s better perception. However, this method mustn’t be bound to financial indicators as they appear to be too reductive. Values and prosperity wouldn’t be established and there would also be a possibility of instability to occur (Malik, 2007).

        The forecasting of events and identification of influences are also impacted by limitations concerned with human knowledge (Malik, 2007). That is why, a change has to handle several small steps, and they must be acted upon in a proper way (Maurer, 2007). Handling complication needs an awareness of a number of perspectives, being ready for developments, effective intervention when needed, speed and strengths, and relationship cognition. People must be capable of thinking in different complicated terms, engaging in open communications, and being calm when managing paradoxical outcomes and unpredictability (Cooke-Davies et al., 2007). It can be said that a pre-condition for managing complication is the clear simplification of communication, targets, responsibilities, roles, and communication in PM (Johns, 2008). The outcome quality of managing complications relies on different resources and clear analysis of data that is carried out with the definition of requirements (Maurer, 2007). Moving on, the variance of performance should be considered. During all the proceedings, to best value chain at an internal level must be considered for the optimal structure in the organization, value creation, product mix, and market orientation (Schuh, 2005).

        The capability of managing complication is influenced adversely by the lack of interaction and coordination with different sectors in a company. This can be the cause of cannibalization in products, resources, markets, and departments. This situation can be prevented by communication (Schuh, 2005). The requirement of permanent communication was addressed by Norman (2011) while suggesting the following strategies for maintaining it: giving feedback, offering hard facts, storytelling, and investing in bonds. This, in a loop of control, offers new data and information which starts a new procedure for managing complication and chaos (Norman, 2011).

For managing complication, there are 3 methods and they include eliminating, reducing, and controlling.

Controlling Complication

        First, controlling complication needs acceptance and guidelines and norms can be applied. Generally, managers make decisions on a strategic level. The process of controlling takes place in several steps: incremental planning which utilizes lessons that are learned from previous projects, planning of a rolling wave, and various multiple methods of estimation such as WBS or Work Breakdown Structure. Gate review controls them daily and these steps are recognized well but just not implemented broadly to the distribution business. Methods were analyzed by Kersten et al. (2012) which were utilized for controlling complications. Those are utilized for controlling and they are utilized for reducing complications as well. Following methods were found by them to be often utilized: adapting processes to the requirements of customers, efficient management of the process, limitations of time, meeting the structures with a clear aim, and reporting with the use of electronic sources. Others processes for controlling complications were: business intelligence and target definition, value creating analysis, standardization, benefits analysis, defined interfaces, bottleneck analysis, best-practice workshops, and ABC analysis. All important data is concentrated by business intelligence on a server at the center (Kersten et al., 2012).

Reduction of Complication

            Complication reducing is made graspable by standardizing products. This seems to take place by improving the processes of assembly, effects of scale, modularization, or the minimization of part variants. Actually, standard products are concentrated but they only fulfill the optimal demands of the market while decreasing the cost (Schoeller, 2009). Advantages and characteristics of standard products are decreased cost, minimization of quality issues, optimization of the supply chain, bound part varieties, attention on core competencies, and improvement of processes and products (Maurer, 2007). Elimination of the poor products from portfolios was described as an extra advantage of products which are standard (Maurer, 2007).

        For minimizing external complication, it is significant to be sure that internal complications are not crossing the stable line (Marti, 2007). The minimization of complications is carried out by structuring, standardization, sub-systems, and shielding:

Shielding: Modifications can be used until a specific milestone or level. Then a freeze will occur and it will not possible for change to be applied

        Sub-systems: Building of platforms in products assists in identifying new strategies by modularization, identifying new synergies, increasing the time of lifecycle, and reducing the costs as platforms and modules are uncouples from the cycles of development

        Standardization: It actually results in a decentralization of different processes internationally and allowing a team to be together for a certain sub-project or a project

Structuring: with labels, signs, lists, observation, and replication of the optimal processes

Elimination of Complication

        Typically, elimination is implemented by management in the phase of initiation for avoiding complication which results in product simplification. But this can influence the capability of competing internationally (Malik, 2007). Elimination was not addressed by Schoeller (2009); a hybrid method was described by him between reduction and control of complications.