Institute for Simplicity

Consulting Based on the Principles of Simplicity
  • Quote

    • The condition for a good organization is a large garbage can. Kurt Tucholsky

BMW understands Simplicity: The new Model 3 will have 80 % less Options

Article published on 2018-07-05

The second step of our „3-Step-to-Simplicity“ Method is about reduction of complexity by reducing the number of options. A typical car manufacturer has lots of such options. When ordering a car many features need to be defined: pages filled with interior details have to be selected as well as several exterior options like colors, tires and so on. All of these need to be developed, tested, negotiated, ordered, planned, certified, stored. Many are kept available for years after the model has already been withdrawn from the market.

ALDI Trying to Compete Desperately

Article published on 2018-04-06

A Hard Discounter does not need to offer everything

Impossible but true: ALDI without profits

Article published on 2018-04-03

In the past, ALDI was a role model with its disruptive business model and its consistent and disciplined management. This led to the highest profits amongst grocery retailers. Today, ALDI is becoming a role model for leaving its convincing and proven business model behind and consequently generating losses. 

The German business journal „manager magazin“ reports in its newest edition (4/2018) how pretax profits of ALDI South in Germany have dropped from 3,6 % in 2016  to 1,7 % only in 2017. In December, profits even turned into a loss of -2,87 %. For 2018, the management of ALDI South expects to follow the same trend. 

Older entries:

06.03.2017: Walmart is next

01.02.2017: Aldi wins again “Global Simplicity Index”

28.12.2016: About the complexity of modern payment methods

22.11.2016: ALDI is becoming a very normal company – ALDI today and the ALDI system

14.10.2016: Eurowings: The complexity of Wining and Dining

07.10.2016: Mixed boxes: Discounters heading into the wrong direction

12.02.2015: Tesco: Caught by complexity and What is Top Management good for?

17.12.2014: Sales per Squaremeters or Concentration on the Essentials

24.10.2014: Concentration and Working in Focus Areas

29.09.2014: “The greatest shortcoming of the human race is our inability to understand the exponential function.”

25.07.2014: What remains after Karl and Theo Albrecht have passed away

30.01.2013: Marissa Mayer: a little bit of Google at Yahoo Inc.

03.01.2013: Interview of Retail News, Turkey, with Nils Brandes, Co-Author of “Bare Essentials – The ALDI Way to Retail Success”

21.10.2012: What is essential?

23.09.2011: Out of Control: UBS Investmentbanker Adoboli causes loss of more than 2 Billion Franks

08.09.2011: About today´s complexity: crazy European Union

25.08.2011: The “Koefte-Consultant”

07.08.2011: Ploughhorses or Showhorses