dispatches from the new world of work

Bigger Lesson?

My favorite recent quote, from economist Paul Ormerod, in his terrific book, Why Most Things Fail: Evolution, Extinction and Economics. To wit: "I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, 'How do I build a small firm for myself?' The answer seems obvious: Buy a very large one and just wait."

(P.S. Suggest you read it twice.)

More of the same, more or less, from last Sunday's New York Times Magazine. Gretchen Morgenson starts off like this: "What Are Mergers Good For? Not much, unless you're one of the bankers or executives whose compensation goes up with every deal you do." No "news" here, but always worth repeating. Every CEO thinks he's the exception to the rule. Message: He's not!

Tom Peters posted this on 06/09/05.

Comments

Akin to Richard Branson, who when asked, How does one become a millionaire he replied..."Start with a Billion and buy an airline".

Posted by Tony at June 9, 2005 12:05 PM

And the old question "How do you make a small fortune in the restaurant business?". Answer: Start with a large one.

Posted by Kirk at June 9, 2005 2:42 PM

Here's hoping my business proves those case studies wrong.

I'm not interested in being another statistic.

While those are funny one-liners, there is an answer. Have a plan. Ultimately, I believe the way you beat those odds and become a case study of the opposite, is to have patience. Something I'm growing in every month that passes.

Have a big dream, but have a plan that starts with something small that has the capacity to grow. Right now, we're somewhere between the two places. Not in a hurry though - life's a journey...not a destination.

Posted by Tony May / Mayday Media at June 9, 2005 4:03 PM

Hi Tony

Sir Winston Churchill - perhaps our greatest Englishman of the last one hundred years said; 'Never, never never quit'

My Grandad said; 'Always do your homework'

The two best pieces of advice I ever had - keep to both of those and size becomes immaterial - it is focus, determination and effort that get results.

My personal preference will always be for 'small' but there really is no reason - I guess â€“ why â€˜bigâ€™ cannot work - it is just that there are too many variables.

I remember when I worked behind the bar in my local pub - if someone complained about the drink I had no committee to refer the problem to -it was eyeball to eyeball and apologies! Like hanging - it concentrates the mind! â€˜Bigâ€™ often means hiding behind structures

Posted by Trevor Gay at June 10, 2005 7:50 AM

I don't think there is one plan that spells success. So many factors that influence whether a plan will succeed or fail. Just look at all the advice that Tom is able to give. No one person can apply 100%. You have to pick and choose.
Perhaps the bigger lesson is to re-imagine our definition of what success really is. Tom inspires us to change. China is coming and the "American dream" will be challenged. Remember : reward great failures and punish mediocre success. Our culture is in for a culture shock...

Posted by Steve Robert at June 10, 2005 8:03 AM

We vote with our feet. Customers vote for innovation. Innovators vote against large blocks of entrenched bureaurcrats. GM hasn't been in touch with customer innovation for decades. The election is over. Alas.

Posted by Tom C. at June 12, 2005 11:20 AM

Good Point. But isn't all the anti-merger talk really about anti-MEGA-merger? AOL-TM types. There is still a lot of merit in doing focussed acquisitions - a la GE or Cisco. Of course it is not very glamorous. In fact last year there was a great HBR article "Ally or Acquire". It had an intersting thought - like people, companies also form habits. Some companies like to acquire when they should have an alliance and vice versa. Something to think about!

Posted by Munjal at June 13, 2005 5:32 PM