You Must Consider the Source

Implications: Focus on CEO motives and thought processes is important.

Seidenberg may not see AT & T as his major competitor. His eyes are probably on Comcast.

Have you ever noticed how often we go from being big for scale and then back to lean and mean?

Who are the beneficiaries of all of this?

Analysis: This article focuses on the CEO's and their motives in the actions they are taking. Knowing the CEO's is important. Ivan Seidenberg is probably one of the smartest and most patient CEO's operating in the United States. When Bell Atlantic merged with Nynex to become an even bigger Bell Atlantic, Seidenberg did not insist on being CEO like so many others would have done. He settled in as a strong number two and took over the top spot within a short time.

When Bell Atlantic merged with GTE, again Seidenberg bided his time until the former GTE CEO retired. Then Ivan had it all. Very few of the ego driven CEO's we read about have such patience.

On the other hand Whitacre has been heavy handed in his march toward recreating the new ma bell, which, from the beginning, has always seemed to be his goal. He, in his quest for size, has run afoul of regulators and consumers in several states and his approach in handling these situations is much like his pastime of stomping snakes on his Texas ranch.

Seidenberg sees a new kind of competitor that looks more like Comcast. Comcast sells cable, broadband and telephone service through one line to the home and despite the comments from traditional telephone companies, it works pretty well. I know because I am using it right now to write these comments and I am knocking on wood. I think Seidenberg is moving in the right direction.

It is also funny to notice over time how corporate America keeps going from being big for scale to being lean and mean. This ball keeps bouncing up and down and someone should plot these moves over the last thirty years to show the trends. It would seem the Wall Street Deal makers drive corporate strategy. They always seem to be the biggest beneficiaries of all these up-size and downsize deals.