Big Companies Will Never Be Small Companies

      Most businesses today are on a mission to become “customer-centric”. The emphasis has shifted from the old philosophy of “product is king”, to the ultimate and only real source of sustained profitability the “Customer”.

 This change in philosophy has been vigorously fueled by the internet, which offers a wide variety of choice for customers for virtually any product or service.  

 Many large companies view CRM as just the process of segmenting customers to make the sales process more efficient. Others believe it is an advanced stage of database marketing.

 However, the recipe of successful CRM is the blending of people, processes, and technology in just the right amounts, to provide an exceptional customer experience.   

 This requires not only massive procedural changes, but also a change in customer culture that is unattainable for many large organizations.

  The biggest obstacle to customer success in big companies is politics.  Product based management is so entrenched in company culture that any change is a significant challenge. Politics polarize people and groups when they feel like they may lose power. Change makes people regress to protect what they always have been comfortable with.

 While some big organizations can be applauded for moving in a positive direction, the vast majority are hopelessly lost.

 As a 20 year IT worker for large corporations, I can say first hand, that change does not come easy if it comes at all.

 For decades, executive careers have been carved out in a product centered business world. Fortunes and power have been amassed by playing the power game and human nature shows people will not give up their kingdoms willingly.

 The higher up the corporate ladder, the further the distance between senior decision makers and customers.   

When stockholders finally demand action in response to falling profits, companies spend millions on technology to accomplish CRM objectives, while holding on to their castles. They foolishly trust software vendors and CRM consultants to make the problem go away.

Too often executives want CRM initiatives displayed quickly because they want the quick return and credit.

Failure is guaranteed because senior executives do not care enough to try to change corporate culture. Why should they try? They know they will be long gone by the time the benefits of a customer strategy can be significantly realized. 

When you look at 50 years of corporate politics and stifling bureaucracies, it is easy to understand the problem large corporation’s face in implementing such a wide reaching strategy.

This is where small businesses have a huge advantage.

     In large corporations, because of the short-term nature of profits, a customer initiative is not allowed to evolve past next quarters sales figures. Payback is needed fast to justify expenditures and projects often lack any kind of a focused customer strategy.    

The politics and bureaucracy of bigger companies do not paralyze the small business. Smaller companies can react swiftly to change because the boss is already involved.

 In a small business, you are not betting the ranch on every new customer effort. Since you have less to lose, you can try new and innovative projects which will increase the odds of having success.     

A small business must use its greatest strength, which is flexibility. No big meetings or feasibility studies are necessary.

 They can just do it!