Overview
Simplify until it fits on one page.
In an increasingly complex world, Buzz Waterhouse, CEO
of Reynolds & Reynolds, believes the key to effective leadership is
to keep things simple.
“I believe great leaders are great simplifiers,” says
Buzz. “After all, leaders lead people, not organizations or companies.
And leading people is about gaining understanding, alignment, and
support. One of the best ways to do that is to simplify.”
Buzz outlines the three key questions every leader must ask himself:
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Does everyone understand the direction you’re headed and how you expect to get there?
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Are your people aligned around that direction?
How can you gain their support for the actions needed to move in that direction?
“I try hard to simplify things to their essence,” Buzz
says. “My approach to solving any problem is to synthesize the facts
until I can find the essence of what the company is trying to do.”
The key to his method: Simplify the business plan until it fits on one side of a sheet of paper.
“It doesn’t matter whether it’s the most complex
business or complicated market, an organization’s core values, or any
other critical focus. Simplify it to one page. That way, everyone in the
organization is— literally—working from the same page. They see the
same picture, and use the same language to talk about the essence of
what you’re doing. And then you hammer it home in everything you do.
“In my career, I’ve worked with leaders who have been
extraordinarily-good as simplifiers in the most complex, global
businesses you can imagine. That ability makes an enormous difference.
I’ve also worked with leaders who made the simplest business too
complex, and it drove most of us nuts. It also made us less effective.
“Both experiences have stayed with me and reinforced the
same lesson: A leader’s ability to simplify is a powerful way to focus
people on the essence of what you’re doing.”
Reynolds & Reynolds serves automobile retailers with
information technology and software. The technology enables these
dealerships to manage their businesses more robustly and connect
seamlessly with car companies and with consumers.
Recently they developed a new technology platform that
captures a comprehensive picture of an automobile retailer’s entire
business and all the touch points with consumers—from the first visit to
the dealer’s Web site to the service reminder after 40,000 miles.
Following his philosophy of “keep it simple,” Buzz and
his executive-team managed to articulate the new generation of
solutions—and the company’s approach to the market—on one side of a
single sheet of paper.
“We displayed the essence of what Reynolds offered by grouping solutions around the circumference of a wheel,” says Buzz.
“Each section of the wheel, like a slice of pie,
represents a department in a dealership and a set of corresponding
solutions from Reynolds. Adjacent slices on the wheel are linked, and
together form a comprehensive, integrated array of technology solutions
that match a customer’s total business needs.
“That sounds pretty basic, I know, but the wheel takes
two complex businesses—ours and the dealership—and simplifies both. All I
have to do is mention the wheel, and everyone in the organization knows
the reference point. This simplifies the essence of how we meet the
customers’ needs and creates value for them in every part of their auto
dealership—from sales and leasing, to insurance and financing, to parts
and service.”
Buzz concludes: “I recall reading a comment made by
Einstein. He said, ‘Always simplify things to the greatest extent
possible, and not one bit more.’ That seems like a pretty good formula
for business success.”
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