CHAPTER FIVETHE BIGGER THEY ARE, THE HARDER THEY ARE TO CHANGE

Big is the enemy of change.

With size comes a large degree of inflexibility, ego, vested interests, and other bad things that hamstring a company in this age of the unpredictable. Just look around you at the wreckage of our largest institutions, such as AIG, GM, Merrill Lynch, Citicorp, and others. Repositioning requires a certain degree of flexibility that size makes very difficult, if not impossible. If you’re going to get big, do it the way United Technologies does it. It has assembled a number of highly specialized brands that operate on their own, such as Otis elevators, Carrier air conditioners, Sikorsky helicopters, Pratt & Whitney jet engines, and Norden electronics. Each ...

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