Bigger is not better

Given the recent economic and credit crises I am leaning to the thought that bigger is certainly not better in corporate America.

Commercial banks and other financial firms grew through mergers, acquisitions and expansion to the point of "Too Big To Fail" status. But, by news reports of their accounting practices and financial well-being, they were never what we thought they were. They produced huge incomes for a select few at the top of the ladder, but left many exposed to their unsound business practices...both customers and debt and equity holders, the later of which include pension funds and charitable interests.

And, on an operations level these behemoth companies were cold and impersonal. My own experience includes having multiple banks bought out by larger rivals. More than once at the banks that I originally opened accounts I had a personal level relationships, sometimes even being known by name by the management. At BigFinance Bank, I was just a body walking in the door. Most times services were cut even as commercials on the TeeVee told me my new big bank gave me tons of no fee services and great rates.

And "Too Big To Fail" automakers, and too big retailers, and too big oil companies and others. Big cold, sterile corporations filled with employees that turn over much more often than in times gone by, and by management and employees that may or may not be dedicated to anything but themselves.

Maybe this age of larger Banking, Automaker, Oil and the like is just a part of the grand business cycle and smaller institutions are around the corner. Maybe personalized service and management and employees that care about their jobs and companies they work for is going to make a comeback. Maybe locally owned companies can make a comeback. I can dream that anyway...