Earlier quoted context omitted.
>I see a lot of startups dying, much more than fortune 500 companies. Can I now conclude not having processes kills companies faster? No you cannot, because your starting premise is flawed. One organization has demonstrated its value over time - quite possibly inter-generationally - and the other has not proven its certainty in returning income. And what created that value in time? The people. With startups, it could…
The S&P 500 doesn't demonstrate that. It demonstrates that businesses die. It doesn't demonstrate the cause. You might assume it's increased bureaucracy or lack of organizational competency but there isn't compelling evidence, I don't buy it, and good investors like Warren Buffett don't buy it. Talk to anyone who worked at a big successful newspaper in the 80s and anyone who worked (or works) at Coke (or Pepsi). Both…
I recognize it takes four years for McDonalds to add a new product to their global supply chain. That is a symptom of scale which the administration therein attempts to streamline. In the likes of $KO, I would wager there is less complexity in the internal administration of manufacturing a beverage which has not changed in recipe in a century, and which takes nearly the same amount of time to launch diet coke. The good manufacturing practices, in other words, have not changed nor do they need to as KO continues to grow in market share globally for beverages.
Meanwhile, business computing has simply exploded since 2010 yet IBM's revenue has shrunk ~30%. Are you to suggest it is not the personnel that are responsible for its tepid business development in response to a market which moves fast and breaks things? That maybe the preservation of the internal cohesiveness of the organization as intrinsically valuable kills companies in the presence of new market environments which the organization is motivated to be responsive at the risk of termination? I advise reading The Innovator's Dilemma to corroborate my assumption.