Why Bigger Companies Are Not Always Better

Well, two weeks later and still no word from the company.  Later that day, I received a call from the gutter company.  But it was from the 'sales' department.  They were completely unaware I had requested service, nor that the service was late.  The company wanted to know if I had interest in 'getting my gutters cleaned'!!  A complete disconnect in my opinion – trying to sell me a service without knowing I already had a late service request outstanding.  I then asked for an update, and the sales rep told me someone from service would get back to me within 48 hours…really??

I was so angry at the situation that I picked up the phone and called one of the local gutter companies.  The owner agreed to meet at my home that night to assess the situation.  He immediately saw the problem gutters and noticed I had heating wire (from the roof) snaking down the inside of the gutter.  He advised me to put the wiring behind the gutter – as wiring in the gutter causes more frequent clogging.  So, as opposed to fixing the symptom (clogged gutter), he actually fixed the problem (the next day!).  Maybe a bit more expensive in the short term, but cheaper in the long term.  The national company called me back two days later, and I told them they failed on several fronts.  Communication (or lack of), poor customer service, a disconnect between sales and service, and lastly, not fixing the 'root cause' problem.

Now I tie this episode to the consulting world.  In my experience, I've seen asset management firms lean towards hiring the larger, recognized consulting companies due to perceived 'safety and risk averse' benefits (refer to our prior blog You Don't Get Fired for Hiring IBM).  My initial decision to use the large gutter company was based on safety, and price.  But lacking was the 'more personalized' service and a 'customized' solution.   And, I don't know what I don't know.  I was looking for someone to tell me I shouldn't put wiring down the gutter and offer up creative solutions. I got that advice from the small gutter company.

Larger companies can be burdened with inefficient processes and systems, and you might feel like a number in a queue when things go wrong.  Smaller, niche companies oftentimes have more flexibility to mobilize resources and offer a solution tailored to your specific needs.

While I'm not implying large companies are 'bad', in this case, my situation was attributed to a process, communication and resource breakdown that is symbolic of bigger organizations.  It was very difficult for the national company to 'turn the ship around' and fulfill my service request or provide a timely update.   The smaller company recognized the opportunity and responded with a quick plan of action.  A win-win for both of us.  My mistake was assuming I only needed a 'basic' service and therefore was searching for the lowest price. 

In the past few years, we have seen many of the smaller investment management 'IT and Operations' consulting firms get acquired by larger companies.  These acquisitions provide larger companies a means to gain very specific niche expertise and a clientele that is used to 'high touch' service.  The question is still out as to whether these smaller firms will be able to maintain the same level of personalization, responsiveness, and flexibility in the larger organizational structure.

I sure hope my local gutter company remains independent, as I'm now accustomed to feeling like "I'm a very important customer."  Shouldn't that be a primary objective of all companies?