Ever notice big companies die in a manner similar to stars?

John Kane

Consider; Running out of fuel, the star contracts (companies do RIF’s, office closings, divestitures)…

as it contracts, conservation of angular momentum forces the rate of rotation to increase, spinning faster and faster (companies get more spin doctors).

That increased centrifugal force accelerates the escape of energy from the body of the star further reducing the available fuel (the good people leave and more assets are sold off) while at the same time increasing the gravitational draw of the core (G&A as a percentage of revenue grows and grows) resulting in additional contraction (more RIF’s, cost reductions and asset sales) which increases the rate of spin (conservation of angular momentum still applicable).

This process continues until the point of no return and the structure collapses in upon itself either going nova (company is carved up and sold), or turning into a black hole (stock tanks)

The Thoughts of John Kane


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