Complexity Compounds.

I don't think product complexity gets talked about enough.

In fact, I'd argue it's one of the biggest silent killers of profitability in product and engineering-led businesses.

It rarely happens because someone makes a bad decision. It happens because lots of sensible decisions accumulate over ti

me. For example:

"Let's add one more feature."

"We can create a variant for that customer."

"This market needs a slightly different version."

"We'll keep the old platform running for another year."

Individually, they all make sense. Collectively, they create an organisation that finds it harder to design, manufacture, source, forecast, support and improve.

The hidden costs don't appear on the day the decision is made. They appear months or years later as:

• Slower product development

• Higher inventory

• More suppliers

• More meetings

• Fragmented engineering teams

• Longer lead times

• Lower gross margins

• Frustrated customers and employees

I've spent much of my career working with complex physical products, and it’s clear, complexity compounds.

The best businesses aren't always the ones with the biggest range of products. They're often the ones with the discipline to say no.

In special cases it can make sense to keep a product in the range as a loss-leader, or to support a key client or market in case of an urgent requirement. Here the business case isn’t profit on that product, but maintaining a profitable relationship and positioning over time.

Otherwise, every SKU, feature and platform should earn its place, because simplicity isn't the absence of capability, it's often the source of profitability.

Have you seen product or portfolio complexity eroding performance in your organisation? I'd be interested to hear what you've observed.