Too Big To Fail

If there is one phrase that has truly annoyed me during
our current financial crisis, it is, “To big to fail.”

The reason for my annoyance is that this phrase also
suggests that there are companies that are “too small to
save” such as all of us in small businesses.

HR CONTRARIAN POINTER: If a company is too big to fail,
then that company is just too big and needs to be broken
into manageable pieces.

Having done acquisitions with a public company back in the
1980’s, I am well aware of the ego trips that corporate
officers experience when they “gobble-up” the competition
or execute romantically sounding strategies such as
vertical and horizontal integration.  Bull!

Research has proven that 80% of acquisitions fail to
achieve their desired financial objectives.  But yet, we
still allow and even encourage companies like MBNA to take
over Merrill Lynch, as if a bank has the secret formula
for saving a struggling brokerage firm.  All that this
acquisition achieved was to further solidify the fact that
we will never let MBNA fail – it’s now bigger than it was
before.

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