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Australian Energy Producers Journal Australian Energy Producers Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Simplicity from complexity

Howard Thomas
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TAM Consultants Pty Ltd.

The APPEA Journal 56(2) 542-542 https://doi.org/10.1071/AJ15048
Published: 2016

Abstract

Joseph Tainter suggests that empires collapsed because they became too complex. In early days, the order (and complexity) the rule of empire brought was positive; the law of diminishing returns reduced the marginal value until it disappeared completely. Tainter says collapse is a natural simplification.

Peter Drucker describes a clear trend of growth in management throughout the 20th century and pursuit of risk avoidance through increased control. Moore's Law and Wirth's Law describe the growth in information technology though the 21st century. The work of Edward Hess suggests few companies have grown in excess of GDP for extended periods, yet the markets demand growth.

This extended abstract introduces the contagion of complexity to describe the cumulative effect of management growth, IT growth, and the pursuit of growth above GDP.

There is a need to identify when the value of complexity turns negative, and to innovate before companies experience deterioration in productivity. Industry is now producing more, but at the same time its complexity is increasing.

The common denominator of best practice is all about making things simpler, enabling competent people to do their job with a minimum level of bureaucracy. When IT was introduced it seemed to promise to allow people to work less and have a better work-life balance. If that promise is to be believed, and IT is to be used effectively to enable performance instead of control performance, there is still time to simplify and avoid the point of negative inflexion.

Howard Thomas endeavours to make the complex simple for his clients and audiences. He combines an in-depth technical background with wide-ranging business experience, and is known for his engaging style of presentation. He is formally technically accredited as a Fellow of Engineers Australia and a Chartered Professional Chemical Engineer, and has worked on hydrocarbon installations all around the world, from roles as a technician to executive consultancy. Howard has started, developed, bought into, and sold a number of businesses, but continues to promote high performance in industry through Thomas and McKinlay Consultants, which is best described as part of the sharing economy and enabling knowledge workers to find work-life balance.


References

Drucker, P., 1999—Management challenges for 21st century. New York: Harper Business.

Hopkins, A., 2000—Lessons from Longford: the Esso gas plant explosion. Sydney: CCH.

International Association Of Oil And Gas Producers, 2009—Safety performance indicators – 2008 data. Report number 419, dated May 2009. London: International Association of Oil and Gas Producers.

International Association Of Oil And Gas Producers, 2014—Safety performance indicators – 2013 data. OGP data series, report number 2013s, dated July 2014. London: International Association of Oil and Gas Producers.

Kletz, T., 1993—Lessons from disaster: how organizations have no memory and accidents recur. Rugby, United Kingdom: Institution of Chemical Engineers.

Tainter, J., 1988—The collapse of complex societies. Cambridge: Cambridge University Press.