This is apparent in Danish views on the movement in complexity over the past two years. While 22 percent say there has been a very significant increase, and 32 percent a moderate or small increase, fully 44 percent say that complexity has stayed the same or reduced, the highest figure recorded in this category.
This gives Denmark a net figure of only 10 percent for respondents reporting an increase in complexity since 2008, by far the lowest recorded, alongside the Netherlands. But, looking ahead two years, Danish respondents don't expect much to change, while those from Italy, Ireland, Russia and the Netherlands expect a net reduction in complexity.
Examining the declared causes of complexity in these countries, it appears that in several there are one or two factors clearly identified as most influential; for example, the effects of recession in Italy and Ireland. So as these factors decline in strength, the additional complexity they generate might be expected to decline as well.
But in Denmark there is no outstanding cause. Around half of Danish respondents cited globalization, information management, speed of innovation and regulation as causes. But none of these was thought to be substantially more influential than the rest, and since each is a normal feature of business life in most of the countries surveyed, it would make sense to assume that they will continue into the future, generating much the same levels of complexity as are experienced today.
There was one factor that a majority of Danish respondents did expect to increase in influence. Tax policy was cited by 60 percent as a leading future cause of complexity, well ahead of regulation and government oversight, both on 47 percent. Coming from a country well known for having among the highest rates of value added and personal tax in the world, this is, perhaps, not so surprising. But it does demonstrate a continuing high level of concern over tax rates, even among people who might be expected to have become accustomed to them.
A majority of Danish respondents (60 percent) did see opportunities in complexity, but there was less enthusiasm for these opportunities here than in any country except Germany. Just over a fifth (22 percent) said they saw no opportunities in complexity, and 18 percent were not sure, the highest figure recorded for this response.
Looking at the challenges posed by complexity, 84 percent pointed to the increase in the number of risks to be managed, and 70 percent said that there was a clear need for new skills. These responses are broadly in line with those from other European states, but while relatively large numbers of companies elsewhere have responded to the need for new skills by making changes to their Human Resources functions, in Denmark only 30 percent have chosen to do so up to now, and only 23 percent plan to do so in future.
The preferred response to complexity from Danish companies has been to reorganize all or part of the business, chosen by 76 percent, followed by improvements in information management. Denmark was the only country not to choose improved information management as the principal means of dealing with complexity today, but looking ahead its importance is expected to increase. Between now and 2013, 68 percent of Danish respondents expect to focus on better management of their information, while just over half (52 percent) expect to reorganize their businesses, merge or acquire a new business, or invest in a new country.
Among the very active and dynamic responses to complexity recorded in other states, especially in the emerging and Asia Pacific economies, Danish responses may appear low key. But they are also carefully balanced in their view of the causes and opportunities associated with complexity, and show caution on the changes that may be necessary to improve management of complexity in future.
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