More.

It’s a generally accepted principle that more is better.

For example.

Less.

That sounds worse, doesn’t it?

But more isn’t necessarily better in an economic downturn. More suppliers, more factories, more products, more variations…these things cause complexity in business. And complexity costs.

Complexity is one of four critical pressure points that companies face when prosperity slows, but often one of the least recognized, according to BusinessWeek (BW).

In Asia, complexity is even more complex.

BW notes:

We surveyed more than 900 global executives and found that 80% of Asian participants admitted that excessive complexity was raising costs and hurting profits. In North America and Europe, the number was closer to 70%. The reason: To spur growth in their diverse cultural and economic marketplace, Asian companies often rely on expanded product lines and acquisitions, both of which can bloat portfolios and add layers of processes and systems—particularly vexing during a downturn.

“Using product proliferation as a strategy very frequently does not create value, and often destroys value even as it produces revenue,” Matt Reilly, senior vice president of client services at George Group, told Knowledge@Wharton.

The Wharton website recommends:

• Keeping a serious eye on brand extensions. The support required for marketing, manufacturing, distribution and supply chain could be more enormous than you think.

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