MISTAKE #30: Your goal is to get bigger when it should be to get better
I’ve worked as an employee for several large companies. And my business has had an assortment of other large ones as clients.
I have nothing against these companies, but I am frequently disappointed when I see them unnecessarily focusing on being big, not being better.
They focus on quantity over quality. Their annual objectives are focused on growth, not greatness.
They bow to Wall Street's profit at any price mentality. And customer satisfaction metrics, if they exist, are lifeless numbers hidden deep in strategic documents and reviewed out of obligation, not a true desire to know they are delivering delight to customers.
Working with companies that have devolved to this point is only trumped by seeing young, energetic companies take steps in the same direction…as their market presence starts looking more and more like a seasoned politician always on message, spreading the party’s rhetoric.
This is particularly disheartening because I know these corporations are generally made up of individuals that are full of life, full of heart, and full of soul. These are people that go to work every day wanting to serve their customers and wanting to make decisions that make the world a better place. But the clank and boom of the corporate machine drown much of this out.
WHERE IS THE LOVE?
Companies aggressively seek growth or try to get acquired or merge for a variety of reasons.
Scale theoretically brings new opportunities that can't be done on a smaller scale.
Larger organizations theoretically provide more stability and room to recover from missteps.
And more sales should translate to more profit, right?
But size also has numerous tradeoffs:
Continuity and consistency disappear as more people change positions more often.
Employees learn they can get lost in a larger organization if they don't manage their perception and personal brand.
Process and standard operating proceed and impersonalized responsibility replace passion for 'doing the right thing' with 'do whatever will deliver the number.'
Decision makers get further and further removed from the frontline, with spreadsheets and Powerpoints driving decisions, not intimate knowledge of or interaction with customers.
For some reason, many small companies are lured into this bigger is better mentality. They gradually accept more and more compromises along the way. Not unlike many employees have an idealistic start to their career, only to settle into a less-than-ideal position, delivering mediocre work in exchange for the comfortable paycheck and benefits and Friday afternoon rounds of golf.
Companies get led astray as they forget why the company was started or what the products did for early customers that drove purchase and loyalty.
Instead, they measure success based on sales and profit, and market share. They focus on any activity that can deliver incremental sales and forget about what can give shoppers incremental value or deliver retailers incremental volume.
WHY BETTER IS BETTER
Few companies really prioritize getting better over getting bigger. These are the ones written about in books like Good to Great that debunk the myth that success comes through pursuing profit at any price.
They are companies that know the importance of profit and realize there are benefits to getting bigger. But they understand that growth comes as the result of doing other exceptional work.
These companies seek to identify and correct mistakes in a manner that makes the organization smarter. They don't have a fix-and-forget mentality.
They continually listen to shoppers because they realize it is far easier to satisfy demand than to create it.
They figure out where they need help and don't mislabel mediocre work as excellent to make everyone feel better.
IT IS A GREAT TIME TO BE DAVID
This is also why I enjoy working with smaller companies that are engaging in the proverbial David & Goliath battle. What these organizations lack in resources or experience can be offset with their honesty and earnestness and passion to ‘do what’s right.’
And we are all fortunate to be living in this age of omnichannel that gives David better odds than he has ever had in the past. David has numerous platforms to stand on and shout his message. The ability to produce and distribute compelling content has never been easier.
Many categories are sitting on a unique opportunity where the big players haven’t jumped into content or have figured it out. The big guys are still living in a world where they believe they can tightly control the message.
They are used to buying an audience, not attracting an audience.
The smallest one-person company with a great product, a great understanding of their shopper, a little creativity, and an internet connection has equal opportunity to attract an audience and close sales.
They don't have to be big to be noticed.
CHOOSE YOUR PATH WISELY
Perhaps it is ironic that many small companies have the dream of being big companies someday. They start with pure ideas and the mentality of the underdog, but they secretly aspire to someday take the position of an alpha male. Because of this ambition, many unnecessarily start acting like big companies in some of the most unappealing ways.
Don't let me discourage growth. But please consider the practical benefits of getting bigger relative to the costs. Consider the hamster wheel you can find yourself on if you get too focused on growth.
Take time to value the size that you are, as long as you can. Don't grow up too fast.