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   Synergies in large corps?

   

   steve snyder, May 15th, 2002 @ 8:08am

   
   

   The truth is, large corporations that succeed do so in spite of themselves. As an organization gets larger and larger, it becomes less efficient and less productive. Every size increase adds a layer of waste--slacker employees, poor policies, bad management. The more managers there are, the more bad managers there are. Think of the negative impact on a company of just one bad manager--most of his/her employees are unproductive, others throughout the organization who have to work with them are less productive and it snowballs. The way corporations work is to take some one who is good at what they do, and promote them until they fail--and despite their failure there are pressures to keep them in that spot (the person who promoted them would have to admit he was wrong) so that's where they stay.

   I believe very much in synergy between people. And even between smaller companies that are driven by the people. But in large companies it's the processes that drive the company, not the people. So in mergers of large companies, synergies are difficult if not impossible to realize.

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