Good morning. Novartis CEO Vas Narasimhan said something to me recently that has stuck in my mind: “If you want an organization that’s able to navigate complexity in the external world,” he said, “you have to radically take out complexity internally.”
That’s prompted Narasimhan to focus on taking out layers of leadership, eliminating roles and reducing headcount to create a leaner and simpler organization. “We underestimate the cognitive load on our management and leaders when they have to spend time figuring out who’s responsible for what.” He believes simplicity and fewer direct reports enable leaders to focus on what matters in driving growth.
I thought of that when reading Allie Garfinkle’s terrific profile of David Krane, the CEO and managing partner of Google Ventures. Among other things, Krane argues that “we are having a bit of a renaissance of the power of small teams.”
Says Krane: “I remember looking at teams across the Valley with hundreds of employees working on a fairly narrowly-defined problem and not succeeding. And then in early Google, there were two or three of the right researchers and engineers working on the exact same problem. Time and again, Google would find success.”
Smaller and simpler is an intriguing management strategy in a world where we’ve been taught to equate success with being bigger and more complex. AI is even enabling two-person companies to scale, thanks to digital agents. Of course, fewer people can also mean fewer opportunities for the next generation of aspiring leaders. Curious to get your thoughts.
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