Growth.
Revenue.
Expansion.
The conventional wisdom is that bigger is better. As businesses we want to grow, to expand, to increase our influence on and value for customers and clients.
But is bigger better?
As our nation deals with a new economy, we see the government stepping in to provide relief and support in many places. And the end result is “bigger government.” Some will say, “But, Scott, bigger government is better — look at all the businesses being saved, look at all the services being provided. And, oh yeah, we must provide universal health care for everyone in America [which is different than "all Americans"...] and a bunch of other services.”
Well, to that I ask the question: At what price? Do all those people also agree that the government should make decisions regarding the functioning of businesses? Like the de facto firing of the chairman of GM? Or like the controlling compensation decisions for the banks which received TARP funds? Or, now like “Citigroup Asking for Treasury OK to Pay Bonuses to Key Employees.”
We are turning over control of the free-market system to government. Gee, doesn’t that make it something other than a “free-market?” Like a government-controlled market.
“But, Scott,” you might say, “it will never get to the point of government controlling our [no longer] free-market system. Well I hope not.
So is bigger better?
Yes, if you do it based on the right organization design principles. Principles like:
- Autonomy
- Flexibility
- Focus
- Agility
As a business owner, when you consider expanding to become “bigger” think about how you can retain the best qualities of your small- or mid-sized company.
- How will you duplicate quick decision-making?
- How will you ensure the same level of customer care?
- What about maintaining the same level of performance expectations that you personally drive today?
The further away you get from the tips of the branches, and hence the customer, the more you need to ensure the critical factors that make your business successful stay in place.
So, again, is bigger better?
Maybe. Today we see some examples of where bigger wasn’t, or isn’t, better. Is your business one where you will be certain bigger is better?
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