Big is Bust

I used to think, like many of our corporate leaders that big was beautiful. Words like grow, acquire and expand never failed to feature prominently in strategic plans.

Now industry giants like General Motors fail while Reva makers of the G Wiz electric car, foresee a 3 to 4 fold increase in production over the coming year. In air travel British Airways is close to bankruptcy having lost £148 million in three months alongside mammoth pension liabilities. In the same industry newer, smaller and more nimble operators are opening new routes.

Contrary to popular belief, being big is no longer a recipe for success. In fact, in the current trading conditions for many, its a recipe for disaster. Smaller businesses tend to;

• have better internal communication


• are more trusted by their clients


• command greater loyalty from staff


• foster a spirit of team work


• innovate more quickly


• adapt to change earlier

All characteristics required to survive the recession. A recession that, as a result of redundancy is creating a host of new start ups. Independent businesses owned by the guy or girl that does the work, with no need to answer to shareholders. Motivated simply by a heartfelt commitment to serve the customer - isn't that a better way to do business?