Over the last two weeks we’ve talked about complexity in two ways:
- Complexity is the silent killer (it feels like growth, turns into weight)
- Complexity creates a tax (profit and cash quietly disappear through errors and slow decisions)
So now the real question is: what do you do about it?
Most owners try to solve complexity with motivation. More discipline, more accountability, and better (more frequent) communication.
If we just meet about it, it’ll force me to move forward…
Most businesses don’t get stuck because they aren’t smart enough or aren’t trying hard enough. They get stuck because they are carrying too much:
- too many offers
- too many tools
- too many “special cases”
- too many KPIs
- too many priorities
And every extra thing adds friction. And over time, you can’t outwork friction.
Friction is a problem of accumulation. Accumulating too many things.
How do we solve an accumulation problem? With “ritual” or rhythm.
THE ANTI-COMPLEXITY RITUAL: THE QUARTERLY PRUNE
Complexity is normal, so don’t beat yourself up. Mistakes accumulate slowly, then are felt suddenly.
We have to stop this accumulation. I like the once a quarter prune.
Lets start with the basics:
WHO’S IN THE ROOM
Keep it small:
- owner / CEO
- the operator (COO/GM or whoever runs execution)
- finance leader (controller/bookkeeper/CFO support)
- Sales or delivery leader
Outside of having more than one owner, each group gets one seat! If you have multiple business units, I’ll make an exception for one from each unit.
The tendency is to bring in the highest-ranking person. This can work, but if they’re resistant, they might not be the best. Instead, bring the one who has brought the complaints… who has opinions.
If you can’t NOT invite the highest ranking person, allow for other employees to “pop-in” for a short de-brief. Let them know and let them plan, then give them 15 minutes. This way they don’t bog down the discussion, but are allowed to insert new ideas for discussion.
WHAT YOU BRING (5 MINUTES OF PREP)
Each person brings:
- 3 “exceptions” that caused real friction this quarter
- 1 thing that’s getting harder to manage as you grow
- 1 place where customers or team seem confused
If you give them time (at least a week or two), each leader should be able to come with something like this. This really shouldn't be hard and if it is hard, it means they're not trying. If people show up not prepared, be willing to hold them accountable.
It's uncomfortable, but it's necessary for this to work well.
THE AGENDA (60 MINUTES)
1) CUT (15 MINUTES)
Pick 3 things you will stop doing.
Examples:
- stop offering one-off custom versions of a service
- stop supporting a “legacy” product line that drains attention
- stop building reports nobody uses
Each person gets the floor to offer up ideas. Talk and brainstorm these ideas together.
The point isn’t to be harsh, but also don’t be timid. The point is to stop feeding friction and this will require real conversation.
2) STANDARDIZE (15 MINUTES)
Pick 3 things that get one default way.
Examples:
- one invoice format
- one set of payment terms
- one project kickoff checklist
- one “definition of done” for handoffs
This isn't about telling people no but it's about fighting our natural tendency towards complexity. By standardizing to one specific format, people have to get creative in other ways. If the default is changing the invoice or extending the terms, and now you've told people they can't do that, they find other ways to get creative for customers.
Standardization is not bureaucracy.
It’s how you keep speed as you grow. Otherwise, the business can come grinding to a halt, which halts growth. This is imperative to keep growth moment.
3) CONSOLIDATE (15 MINUTES)
Pick 3 things to merge.
Examples:
- consolidate offers into 2–3 clear tiers
- consolidate tools (one system of record, one communication channel)
- consolidate KPIs (from 25 down to 5)
- consolidate internal processes
When you have two or three things that are similar, it often makes it hard for people to know which one to pick. By consolidating things that are close, you make the path more clear.
In sales this can lead to higher conversion. On your internal teams this can lead to fewer mistakes and more speed.
4) PROTECT THE SPEAR (10 MINUTES)
Choose the one thing you will protect for the next quarter:
- the core offer
- the core customer type
- the one priority that actually moves the business
If you already do quarterly planning, you can skip this one. The idea here is that each person at the top of their pyramid should be responsible for repeating something so much that everyone gets tired. When we have this focus, we intentionally repel complexity because it forces everyone to move in one direction.
Complexity grows when you let the spear get dull.
5) ASSIGN OWNERS + A DATE (5 MINUTES)
No vague intentions… every cut/standardize/consolidate decision needs:
- an owner
- a deadline
- a “what does done look like?”
You're adults, so no more explaining is needed.
TWO GUARDRAILS THAT KEEP COMPLEXITY FROM COMING BACK
Everyone pushes back on this process at first because it feels awkward. It's hard because we don't often think in this way.
So here are two methods that I've used to get people to adopt it even when they don't feel like it.
1) AN EXCEPTIONS BUDGET
You only get a few exceptions per quarter.
If everything is a special case, you don’t have a business model, you have a custom shop.
Exceptions should be:
- rare
- intentional
- priced accordingly
By building in a set number of exceptions for each person, you tell them, "Hey these are the rules but if you find a really good reason to backtrack on it, here is the process that we have to go through."
This forces documentation of each exception, which can be revisited each quarter but still allows people flexibility when true flexibility is needed (and benefits the business).
2) DEFAULT TO “NOT YET”
Most complexity comes from premature yes, not because the idea is bad.
This is why I'm a big Fan of quarterly planning. Quarterly planning gives you a natural time to revisit good ideas. New initiative? “Sounds great, lets put it on the agenda for the quarterly meeting.”
When we don't do this, problems arise because we commit to too many things, increasing complexity, and in turn often overspend what we intended.
A little spend here and there feels small, but when added up, can be the difference between some profit and no profit.
“Not yet” protects clarity while you scale.
YOUR NEXT STEP
The Quarterly Prune is not just a culture exercise.
It protects margin and cash because it reduces:
- errors (credits, rework, write-offs)
- slow decisions (pricing drift, missed windows)
- confusion (discounting and churn)
In other words: it reduces the Complexity Tax.
Put a 60-minute meeting on the calendar for the end of this quarter. Email your team and tell them to think about the 3 groups mentioned earlier:
- 3 “exceptions” that caused real friction this quarter
- 1 thing that’s getting harder to manage as you grow
- 1 place where customers or team seem confused
Then start a list titled “Exceptions.”
Every time someone says:
- “we’ll just do it this once”
- “this customer is different”
- “we need another tool”
Add it to the list.
You don’t need to fix it today.
You just need to bring it to the prune.
Remember: growth requires subtraction.
