Models don't replace ownership and smaller sized business responsibility...unless can figure out a model for Caring.
When I was doing bank work in D.C. for Consumer Federation, I ended up with the position, due both to intuition, as well as hard facts from studies that were performed by Harvard and other fairly reputable places-- showing that good banking judgement becomes reduced (like with any management) as ownership is eliminated replaced by ever larger scale operations managed by non-ownership managers. Translation -- statistics and common sense verified that the larger the operation becomes, with noticeably poorer decisions happening at the size of business over $1 billion in profits, matched by replacement of ownership/manager with non-owner managers, judgment fails. Caring appears to be a part of ownership. Somethings counter this problem, like profit sharing -- giving workers part of profits -- but ownership of business and smaller size seems to be almost irreplaceable. Small banks and credit unions, owned locally, rarely fail. The owner's name, reputation and thus decisions are on the line. How many names of the managers of these large failed institutions do we know? a couple? and they get paid handsomely either way .. There was discussion of linking pay of all managers more directly to following of safety standards .. but I don't think that happened. Also .. just fyi .. when we went to have a hearing on this before Senate Banking Committee .. with the studies showing that size of institutions relates to poor management -- when you get over $1 billion, management quality noticeable deteriorates -- suddenly the group of professors and academics who performed the studies said they could not testify (they were silenced somehow.) Have a great day! Peggy Miller
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