Corporations just like organisms have a life and implode or wither away at the end of their life cycle. Having worked for over a decade in a multinational corporation, I have noticed that once the corporation grows beyond a certain size it tends to become a conglomeration of satraps. Each satrap has an empire that is run in accordance to the whims and fancies of the satrap. Depending on the vision and management style of the individual satrap it grows, flourishes or withers away. The organization parts over time lose their vigor and withers away, other parts get afflicted and the disease spreads leading to ultimate demise. GM, Chrysler, Lehman and a host of other are examples of this phenomenon. These examples exist world over.
Small and medium sized corporates need to learn from this phenomenon and prevent implosion as they go up the value chain in growth and quality. Level headed leadership, human management capability, humility while being aggressive are some of the characteristics that will enhance life of organizations. Swollen headed CEOs, lack of responsiveness to customers, status quo orientation are some afflictions which we need to prevent occurring in our companies.