Big ball, small ball…

This is my simple analogy regarding the size of a company, big ball or small ball, in relation to the ever changing direction of the wind or economy.

A small ball rolling along with the winds is very light and therefore is effected by every single shift of the wind, no matter how small. This is what I would consider instability. The slightest of winds would easily blow the small ball off track, whereas a large ball would not be affected by the small fluctuations in the wind. Stability is a good thing in business! Conversely when the winds change direction and stay changed, the small ball can flutter along with the change or trend. There would still be the same level of instability but it would be in the very same general direction as the wind or trend. A large ball would not be changed by the wind. It would continue to roll in the direction it was going prior to the shift.  Eventually, with no wind in the direction of the big rolling ball, the ball maybe cease to roll altogether. There it would sit, corroding and rotting into nothing. The small ball would still be moving along in the turbulence of the wind growing and growing until it was moving with the wind, changing direction with the wind and not being effected by the smaller fluctuations. This is now a medium sized ball and is the best size ball to flow with the winds.

Using this analogy, I came to the conclusion that giving money to the “big balls” with the GM, Ford and Chrysler logos painted on the side, is a waste of money. Even if we could spend enough to change the direction of the ball to match the current wind directions (which is “leaner and greener”), the direction could change again as this storm is far from over and we could be stuck spending more and more to keep the “big balls” moving. My solution? Divide the big balls into several medium sized balls that can easily move with the change in direction but are strong enough to be stable during the small fluctuations. Separate GM into Chevy, Cadillac, Pontiac and GM. Separate Ford into Volvo, Jaguar, Ford, Lincoln and Mercury. Separate Chrysler back into Dodge, Jeep, Chrysler and Plymouth (if it’s even still around). Separate them all and let them all navigate this storm in smaller more maneuverable ships on this sea of uncertainty and turbulence.