We see annoying billboards touting that size matters. Various businesses try to convince us that only a massive dinosaur of a company can provide the service or product we deserve. They will have us assume that bigger firms are always better.
It’s the measure of success. We admire industry titans like John D. Rockefeller, Bill Gates, and Elon Musk. The size of the companies they founded is almost as important as the profits they produced.
But anyone who has ever tried to contact a live person at a massive, unresponsive business or organization knows that isn’t the case. At the beginning of The Essential Drucker, Peter Drucker asks us to consider that bigger isn’t always better.
Uncontrolled Growth
Not all growth is good. For instance, our bodies rely on healthy cells to grow and replenish older cells. But cancer grows much more rapidly than healthy cells. Cancer mutations may result in cells that replicate so quickly that they aren’t mature. Cancer multiplies, but a more giant tumor isn’t better than healthy normal cells.
Like our bodies, businesses and organizations can grow in two ways: either grow better and in a healthy way, or they can suffer uncontrolled, cancerous growth that threatens the whole organism.
Sure, a business may be growing. But is it good growth? Do customers see you as a better company or just bigger? Because bigger isn’t always better!
Healthy Growth
It’s easy to analyze quantity. Such and such a company shows phenomenal year-over-year growth. Profits are up, and sales are outstanding. A business like this is a success if we measure by just quantity.
But what if, behind the scenes, there are troubling signs?
- Customer satisfaction is in the basement.
- There are no repeat customers.
- The company doesn’t realize it until it’s too late because contacting customer service is impossible.
Today, the numbers look fantastic. Tomorrow, their raging success will catch up with them. Such a business doesn’t last long. They are yesterday’s trendy company and tomorrow’s memory.
Better Growth
Organizations that master better growth flourish. While they must pay attention to the numbers, they also must plan for future growth.
- Do the current systems need an overhaul?
- Are they investing in the infrastructure and people to handle future growth?
- Are the leaders in touch with today’s customers?
- Is there as much emphasis on long-term growth as short-term profits?
These are some of the considerations that may force hard questions about slowing growth while improving for the future. It may be a hard sell when profits are a primary motive, but bigger isn’t always better.
