It’s a commonplace that large organizations tend to be stodgy and bureaucratic, and smaller ones tend to be innovative and flexible. When we see a large organization that seems to be innovative and flexible, we are amazed. The press springs into action to report on the existence of this Highly Unusual Thing. It’s an oddity, a curiosity, an anomaly, a freak of nature. The organization is cited as a case study in business books and academic papers. Executives in other companies try to mimic what they think they see the exemplary company doing.
Having participated in various change initiatives in organizations of all sizes (from around 20 people to around 240,000), it strikes me that size alone does not lead to stodginess. I think there’s something more fundamental: Identity. That is, the sense of identity on the part of the individual members of the organization. Do people feel like members of the same organization, all aiming for the same goals, or do they feel like members of a local tribe: Team, work group, department, division, etc.? As an organization grows, what factors might contribute to one sense of identity versus the other?