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Economists do touch on the difficulties of organizing big companies, but to me, the best analysis of managing size came from a British anthropologist named Robin Dunbar. In an excellent book entitled The Tipping Point (Little, Brown & Co., 2000), Malcolm Gladwell introduces us to Dunbar, whose work revolved around what he called social capacity, or how big a group we can run with and feel comfortable. His observation is that hu81
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mans socialize in the largest group of primates because we are the only animals with brains large enough to handle the complexities of that social arrangement. His observation was that the figure of 150 seems to represent the maximum number of individuals with whom we can have a genuine social relationship that goes with knowing who they are and how they relate to us. Gladwell extracted from Dunbar s work the following observation that gets to the heart of being too big:
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At a bigger size you have to impose complicated hierarchies and rules and regulations and formal measures to try to command loyalty and cohesion. But below 150, Dunbar argues, it is possible to achieve these same goals informally: At this size orders can be implemented and unruly behavior controlled on the basis of personal loyalties and direct man-to-man contacts with larger groups. This becomes impossible. *
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What Dunbar never envisioned was what happens in big companies. What advanced primates all have is called a reflex personal agenda. It goes like this: when faced with
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* www.lifewithalacrity.com/2004/03/the_dunbar_numb.html.
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THE BIGGER THEY ARE, THE HARDER THEY ARE TO CHANGE
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a decision that could be best for the company versus one that could be best for the individual, a large percentage of the time a human primate will opt for the decision that betters his career. Another expression of this is making your mark. In all my years in the business, I ve never seen a marketing person come into a new assignment, look around, and say, Things look pretty good. Let s not touch a thing. On the contrary, all red-blooded marketing people want to get in there and start improving things. They want to make their mark. Just sitting there wouldn t feel right. When a company has offices full of people, you ve got to expect endless tinkering with a brand. It s how people keep from getting bored. It s also how brands get in trouble. The more people you have, the more difficult it is to manage them.
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The Ultimate Tinker
Nothing dramatizes this more than the recent goingson at Pepsi s North American beverage business. Massimo d Amore rode into Pepsi several years ago. Rather than just fiddling at the margins, he decided on drastic change. He wanted hipper marketing, which meant not only new ads and slogans for seven brands, but also a redesign of 1,121 bottles, cans, and packages. And he wanted it done in just seven months.
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Three results are worth mentioning. The design firm in charge of all this redid the Tropicana orange juice package and eliminated one of the best brand graphic elements of all time: the straw in the orange, which visually said pure orange juice. Once it was removed, people thought they were seeing a private-brand orange juice, not Tropicana. The market rebelled, as it had done when Coke introduced New Coke. Pepsi was forced to bring back the original package design. Millions down the rathole. Then there was a redesign of the Pepsi bottle. A perfectly good design with the Pepsi name and logo was changed by rotating the logo a few degrees and making the Pepsi name dramatically less readable. The average consumer would hardly notice this difference, which cost Pepsi millions of dollars in design fees and packaging costs. Finally, the tinkerers mucked up its once-hot Gatorade brand. They replaced the Gatorade name on its label with a big letter G and shrank its signature lightning bolt. All this did was confuse consumers and shrink the brand s market share of the sports-drink market by 4.5 percent. No one will ever ask for a bottle of G. Will any of this improve Pepsi s long-term business Not likely. Will the design firm that cooked all this up get more Pepsi business Not likely.
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