1 The management guru Tom Peters, in particular, has raved about the efforts of companies such as the ABB, the Swedish- Swiss engineering company, to break themselves down into small entrepreneurial units.
2 He did have an attack of takeover mania in the mid-1980s, but it was short lived. Virgin’s hostile bid for EMI was cut short by the stock market crash of 1987.
3 AMP subsequently bought out Norwich Union’s share in the venture.
4 Campbell, Andrew and Sadtler, David, “Corporate Breakups,” Strategy & Business, Third Quarter 1998.
5 Rodgers, Paul, “The Branson Phenomenon,” Enterprise magazine, March/April 1997.
6 “Richard Branson: the interview,” Forbes, February 24, 1997. 7Mitchell, Alan, Leadership by Richard Branson, Amrop International,
1995.
8 “Has he won the lottery?” The Independent, December 17, 1995.
9 Campbell, Andrew and Sadtler, David, “Corporate Breakups,” Strategy & Business, Third Quarter 1998.
SIZE DOES MATTER
The Virgin Group is effective because it maximizes the entrepreneurial
spirit of its staff whilst minimizing the bureaucracy of its systems. Virgin is not a traditional hierarchical company. Rather, it is a cluster of loosely associated businesses, with their own offi ces and their own management teams. The Branson approach to corporate structure has fi ve key points:
? Grow your own. Branson is a builder not a buyer, something that marks him out as a special kind of business leader. Where other business tycoons have created empires by gobbling up smaller empires, Branson has grown his own.
? Keep it simple. Branson’s life is remarkably uncluttered. This adage epitomizes the Branson approach.
? Break it up into management molecules. To maximize the entrepreneurial energy, and to counterbalance the risk of losses in one part of the empire infecting the other parts, each Virgin venture is intended to be a stand-alone business.
? Keep headquarters to a minimum. Long before they fell out of favour with management gurus, Branson spurned the very idea of a large corporate headquarters.
? Ensure the sum of the parts is greater than the whole. Richard Branson has made it company policy to listen. He has also made it public knowledge that the company will take a look at business proposals from would-be partners.
Taken From: Richard Branson 10 Secrets of the World’s Greatest Brand Builder