“I’m not interested in your sales pitch. Tell me how you’re going to deliver what I want.”
Smaller businesses are different to big businesses, in two ways. Each has something to learn from the other.
Big businesses tend to be organized into functions and departments.
This type of structure dates back to the military model developed by the Romans. It was the easiest way for the generals to direct operations. They’d call meetings with the Colonels, who’d call meetings with their Majors, who’d call meetings with their Captains who’d tell the troops what to do.
Of course these guys didn’t have computers and DSL lines, so the command structure was the only way of keeping the army going forward.
During the Industrial Revolution the owners didn’t have computers either. Adopting the same type of command structure was the only way of directing what the guys using the machines did.
Information technology has moved on to offer many alternative communication models, but big businesses haven’t. They’re still using the 2,000 year old concept of command structure.
Smaller businesses don’t have the same sense of departments, functions and responsibilities. Everybody does a little of everything. They’re able to communicate more easily, and they don’t want the cost and complexity associated with demarcation of responsibilities.
The bigger businesses can learn from their smaller counterparts how to use communication rather than control to direct organizations. (Management consultants have been telling them this for at least twenty years).
On the other side of the coin big businesses can teach their smaller counterparts about “process”. For the same twenty years the large businesses, rather than address the command structure, have focused on the flow of work, and information, between their departmental silos. They now understand very well how to make their “process” work and remove inefficiencies.
Big businesses, like the smaller guys, should focus on removing the cost of middle management, assigning responsibility to the people who do the work and communication.
Smaller businesses should focus on their process – from “first call” to “cash”.
This needs to be a single process (because there are no departments for sales, order processing, delivery and cash collection). Everybody does a little of everything.
Understanding the “first call” to “cash” process, and managing it, will help smaller businesses achieve the double win of more, and more satisfied, customers.
Customers (or clients if you prefer) don’t want to talk to sales, then delivery, then service.
They just want what they want.
Businesses that can persuade customers of their ability to “deliver” what they want will make more sales, more easily, at lower cost, at better prices.
The best way for smaller businesses to persuade customers of that capability is to have a single, integrated, “first call” to “cash” process, and be able to explain it.
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