Organizational Complexity as a Contributing Factor to Underperformance

A high organizational complexity above the cognitive limits of employees and management can contribute to a business performing sub-standardly in comparison its competitors. As businesses grow over time into state complexity, an active approach has be taken. This paper presents NES classification method, aimed at facilitating modeling assessment complexity. Here, any system is classified as belonging one three classes: class N natural, E engineered, or S slipped systems. Operationalizing by applying Tree Attribute Matrix this describes exemplary observations made part consulting projects that demonstrated typical underperformance situations resulting from their organizations “slipping” structures includes measures reduce thereby improve performance.