Complexity is endemic and largely unavoidable in business today. At McHugh, we recognize this reality. However,
having worked with over 100 businesses, we also know that effective management of complexity can reduce costs and increase
efficiency, resulting in more effective use of capital, equipment, and human resources. McHugh Consulting helps clients address
complexity in four areas:
Product and Customer Complexity
Many companies have allowed products and customers to proliferate inadvertently. In many cases, a high percentage
of the total mix produces relatively little profit. Unfortunately, these low-value products and customers can consume excessive
amounts of time and effort, eating into revenue and margins generated by more profitable ventures. Often, ongoing efforts
are focused on addressing these less profitable areas while too little attention is paid to the growth of strategic, high-value
customers. McHugh helps clients balance strategic and operational objectives in order to increase profitability without losing
sight of future growth opportunities.
Often, engaging in too many initiatives and projects distracts companies. Initiative complexity is the most
insidious form of complexity causing individuals to expend time, attention, and talent in multiple directions, dissipating
their efforts. The results of initiative complexity are delays in critical initiatives, loss of leadership credibility and
increasing frustration and burnout of key people. McHugh helps clients focus on core strategic initiatives; develop strategies
to implement them; and allocate appropriate resources to allow implementation on time and within budget.
Structural complexity evolves over time, as changes in corporate structure are made to address a host of organizational
problems, often without consideration of the overall effect. This may lead to poor focus, loss of essential capabilities,
loss of corporate flexibility, confusion over roles and responsibilities and excessive fixed costs. Conversely, an efficient
corporate structure enables the achievement of operational and strategic objectives. McHugh’s expertise in the area
of structural complexity assists clients in implementing a clear organizational structure that meets key objectives while
controlling fixed costs.
Many processes are legacies of patchwork solutions for constraints that were implemented around standards that
are no longer meaningful. Inefficient processes and rework are a major source of unproductive costs. However, few organizations
review and modify their processes regularly. McHugh helps clients examine their key processes and redesign those areas in
which rework and delays result in excessive costs and suboptimal performance.
The McHugh Consulting approach to business strategy is designed to help companies answer a series of critical
questions about the future of the enterprise, as a whole or major business unit. For example:
Does the leadership team have a clear and consistent vision for the future of the business?
Do the relevant data about the marketplace support the
strategy the business has articulated?
Has the business identified viable, sustainable opportunities
Can the strategy be executed?
Is the strategy based on a financial model that yields sufficient economic results to make the strategy worth
Can this strategy be communicated to key constituents in
a way that creates energy and commitment?
McHugh Consulting provides a proven framework called Strategic Pathways to help clients assess these questions.
This approach to strategy provides the client with unique value in that strategies facilitated by McHugh Consulting provide:
Data-based and fact-driven analysis - most
clients have copious data and information about their strategic positioning and options.
Focus on the discrete strategic issues – many clients don’t need a complete
Point of view facilitation – as in all of its
consulting, McHugh Consulting recognizes that clients commit most strongly to strategies that they own. McHugh Consulting
brings a point of view as to what strategic options are available to the clients and what the strategic issues are that the
client must address.
Project management – McHugh Consulting brings a proven process for strategic project management that enables the leadership team
to clearly articulate the activities required to execute the strategy.