In the past couple of years I’ve begun to notice a small, subtle change in the way some people are talking. Small is good. In reality it’s not that new. In college I remember reading a book by E.F. Schumacher called “Small is beautiful, economics as if people mattered”. As the title suggests Schumacher builds arguments for smaller, more decentralized forms of business, government, and technology.

What is striking (to me) is that this conversation is emerging while we are in the midst of unprecedented global expansion. Perhaps the conversation is coming because of unprecedented global expansion.

The green movement is leading the small is beautiful charge. They are advising us to buy local. Small farms create less damage to the environment than do large farms. Buying from someone close to you requires less gas emissions for transporting the product. They are following one of Schumacher’s main points – small entities, no matter how many, can do far less damage economically and to the environment than large entities.

The financial crisis in the US seems to be a reflection of Schumacher’s warnings. Part of the crisis seems to stem from huge amounts of capital being in the hands of a few companies. I wonder if we would have had the sub-prime crisis if we had more local and regional banks with smaller portfolios to manage. Would they have taken the same risks? Could they have even capitalized such risks in the first place?

In a recent NPR interview, key economists theorized that the Internet’s commoditization of stock trading drove investment houses to find new alternatives for generating revenues. The result was the complex auction and derivative-based products which have also been cited as a driver of the financial downturn.

So many big organizations lately seem to be buckling under their own weight. Airlines, auto manufacturers, and of course the financial industry are all examples. Of course, there are also companies that are continuing to grow and prosper. Perhaps they are getting lucky or perhaps they have found the niche or model for which “large is beautiful”. It will be interesting to see how these larger companies fare as regulation, pressure on worker and environmental protection, and consumer’s need to feel connected and valued increase.

Even our presidential candidates are getting into the act. Barak Obama says that we need to provide incentives for companies that keep jobs in America. John McCain emphasizes the need to protect American jobs. The policies of our next president might include economic incentives for “shrinking” at least in terms of where work is done.

I don’t think we’ll ever completely turn back from globalization nor do I think we should. However, I am beginning to sense that the pendulum might be starting to move a bit more toward the center.

Perhaps small is beautiful after all. As a leader, are you ready to manage that? Take a look at Schumacher’s book. The book is over twenty years old. Yet, when you look at his concerns and recommendations you might think he just wrote it.