Comments on: Can Companies Grow From Micro to Mass and Remain Special?

By: Krista

Krista — Thu, 26 Feb 2009 07:38:07 +0000

Paul: Good topic! I once worked for a company prior to its IPO. And then I was at that same company when it went public. I can tell you that the environment changed. I could feel it as a corporate communications person. When you are a public company, your every move is scrutinised. What the CEO does (and what he does not do) is news because like it or not, it affects the share prices of the company. Even employees started to be suspicious of the CEO when he gave press conferences. Eventually that company grew too big and unwieldy and was eventually sold off. The CEO resigned. It was truly disappointing because the company was touted as one of the top software companies in the Asian region. It also got de-listed from the Stock Exchange. Right now, I am running my own business. I know what it means to be small because we can control the kind of output we want as a design firm. When clients ask, why don’t you get more investors and grow bigger? You could expand, buy a bigger office etc. But growing bigger comes with a cost. And sometimes that ‘kills’ the company. I have often said that I would rather keep the company small and dedicated than go public and have people who don’t care about what we do but just care about whether the stock price is rising or falling.

By: Alan Wolk

Alan Wolk — Sun, 22 Feb 2009 05:55:23 +0000

Nice piece Paul.
Sounds like you are discussing Passion vs. Greed.
Howard Schultz would probably be a lot less wealthy today than if he had left Starbucks as a smaller chain based in upscale communities with the attention to detail you describe.
I suspect that Schultz and the majority of business owners who go down that path embark on it certain that they will be the exception, the one who manages to go national without losing their mojo.
I believe it was Jay Chiat, founder of ChiatDay, who always used to ask “how big can we get before we get bad?”
At least he knew.

By: Motyka Johnson

Motyka Johnson — Sat, 21 Feb 2009 19:34:03 +0000

All of these companies went from highly specialized niche markets to serving a much more generalized, sometimes incongruous customer base (especially Starbucks). The issue is that a company can not be all things for all people. The question is, as a company grows, does it have to broaden its customer base, and how can that be done without being less special?

By: Paul Williams

Paul Williams — Sat, 21 Feb 2009 16:09:29 +0000

Maxine,
As in Maxine Clark – I’m the one in charge of Build-A-Bear, Maxine!?
A) Thanks a million for your comment. It says a lot about you and your company that you took the time to leave a comment.
B) I think the experience of Build-A-Bear is awesome and delighting children is the business you are in.
Thanks again, Maxine!

By: Nick Stamoulis

Nick Stamoulis — Fri, 20 Feb 2009 19:43:05 +0000

I agree. I have seen what happens to companies when they grow to quickly. All of a sudden dress codes are implemented and office moral is down. There is positives and negatives to everything.

By: Maxine

Maxine — Fri, 20 Feb 2009 19:19:49 +0000

Thank you for the reminder Paul. Being only 4′10″ I am always aware that small is mighty! The program at Target was very small and very short.
Customers loved it–especially the ones who lived hundreds of miles from a BABW store but Target could not maintain the inventory and so we pulled it. It wasn’t the saturation that effected us because we were far from that, it was the poor service. The last thing I evre want is a disappointed child.
Instead we have put our efforts into buildabearville.com and staying even more connected to our Guests. In fact, I met Guests daily on our site to talk and play games together and in return I get so much more! While we have only 350 stores in the US,CA,UK and France, I just can’t get to all of them any other way.
Thanks for the reminder and reinforcement that being close to the customer REALLY DOES MATTER!
Beary best regards,
Maxine

By: Paul Williams

Paul Williams — Fri, 20 Feb 2009 18:50:56 +0000

Howard – Great point. With all the forms of communication nowadays companies should use whatever means appropriate to stay in touch (inform) as well as get feedback (input).
Thanks for your comment.

By: Howard

Howard — Fri, 20 Feb 2009 16:42:22 +0000

I agree, Trade Joe’s is a great example.
I think the key is while growing, have points where people can remain connected and not “slip through the cracks.” Social media has been playing a large role in that where people are remaining connected and brands can be mass and still be approachable on a micro level.

By: Paul Williams

Paul Williams — Fri, 20 Feb 2009 15:10:50 +0000

Paul B – I agree, Trader Joe’s has been doing a great job. I hope they will continue to stay small and keep the quality.

By: Paul Barsch

Paul Barsch — Fri, 20 Feb 2009 14:31:29 +0000

Hi Paul, happy thought provoking Friday to you.
For another example, I think Trader Joe’s has done a pretty good job of managing growth and maintaining a welcoming environment for customers and employees. Granted they are only in nine states, but they seem to have a certain kind of employee they hire, which helps maintain the company culture as they expand.