Why do medium and small companies do better than giants in terms of performance? It's because when you look at large corporations you are looking at the same thing as government organisations. The bigger the organisation the easier it is for incompetent people to get lost in the crowd. They can get by quite well, by keeping their head down and causing no waves.
Large organisations have large "human resource" departments with rigid procedures for promotion based on paper qualifications, and length of service. Inquisitiveness, can sometimes get in the way. The idea of maximsing profit can only cause stress so it best to keep it down. On the other hand, they can increase expenditure since this shows initiative and it ensures spending is secured into the next year.
Any real disturbance within the large organisation is usually due to a power struggle. Internal wars for power can continue for long periods without apparently damaging the corporation - at least not in the short term. The bigger the wheel, the bigger the inertia and it continues turning. Large sums may be spent on pet projects and if these fail, then being dismissed may provide a pay-off to the individual, big enough to make such failure a success. Failure may lead to promotion into a non job since it is more likely that the boss and the human resources executive will hardly admit to having made a bad decision concerning the person who blundered. Promotion into non jobs may also be the only quick way of getting rid of incompetent executives.
The larger the corporation, the further that senior managers are from the engine room. They are usually preoccupied by other irrelevant matters and most, make a habit of changing positions often enough to gain multiple benefits that are agreed to by their colleagues.
Imagine the increase in productivity if one could take the proverbial pneumatic drill and break up the large organisational concrete into small pieces. Everything and everyone would become clearly visible. Everyone would be accountable. Small organisations do not have the opportunities for self agrandissement or cover up. They are too small for privilege and empire. Success or failure is directly identified with individuals.
