The Power of Less: Embracing Standards

Human creativity often leads to the development of niche solutions tailored to specific problems. While these specialized setups can be effective, they are not always ideal in non-core business areas. In these areas, businesses typically prioritize clarity, transferability, and ease of training over customization. Europe, particularly Germany, is renowned for its emphasis on standards, as evidenced by the DIN norms and the metric system.

When companies focus on non-core areas like HR IT, they are likely to encounter a highly complex, undocumented, and difficult-to-understand ecosystem, which can also pose key person risks. Rather than investing time and resources into documenting and upgrading such a system and processes, a more efficient approach might be to implement standards first and adapt them later if necessary.

Service providers and vendors recognize the benefits of this approach and often offer various standard packages. But how do you choose the right standard for your business? Here are three guiding principles:

A) Relevance Over Abundance: A good standard in HR IT focuses on fewer components that are 100% relevant to your business, rather than overwhelming you with unnecessary features. Avoid offerings that include every possible variation, as they are unlikely to serve your specific needs effectively.

B) Simplicity and Practicality: The ideal standard is quick to implement, easy to learn, and straightforward to follow. It should be practical and have proven success in real-world applications, with reference customers to back it up.

C) Future-Proof and Extendable: A good standard should be release-safe, ensuring compatibility with future updates, and it should offer the ability to extend functionality. Proven extensions can help you tailor the system to your business needs as you grow.

When considering a change, start with a simple, effective standard. Complexity can always be added later as needed. This approach not only saves time and money but also reduces risks and ensures a smoother transition to new systems and processes.