Simple Winning: The Success Path of German SMEs

Author: Rommel
Publisher:
Publish Date: 2004-05-01
Features: Linking simplicity with good performance is different from the usual understanding of businesses. To meet the increasingly complex demands of the market, companies often become internally complicated, such as developing various products and conducting front-end and back-end integration. Don’t underestimate the answer below. Main growth companies achieve simplicity by choosing and concentrating resources. Encouragingly, the author’s findings confirm that there are no bad industries. For any business in the world, where to compete is far less important than how to compete. The blueprint for excellent performance, Simplicity Wins, will inspire leading companies that have already taken the path of simplicity and enlighten those that haven’t. This book is the result of five years of research on these medium-sized enterprises, and similar findings support these conclusions for American businesses. In German companies, the growth rate of these companies is four times higher than that of average companies, productivity is 25% higher, and sales return rate is three times higher. What is their secret? One word: simplicity. These leading companies have a narrower range of products, sell to customers, and use a small number of suppliers. Their organizational structure is decentralized, with simple and efficient workflows, and their R&D investment, logistics, and location structure are more centralized. According to the author, simplicity is not an answer but a process. They describe how high-growth companies use the principle of simplicity to keep the "engine of excellent performance" running. Strictly implementing the "simplicity principle" can achieve strategic differences in customer value, and achieve excellent operations in price, time, and quality. As a result, companies can maintain success, measured by factors such as market share, profit, growth, customer loyalty, financial condition, and corporate image. This success can then drive future investments in products, markets, and employees.