Getting Big, Staying Small

Seth, in "Liars" writes on a topic Brand Autopsy calls "jumbo shrimp." How a company that is getting big, can stay small.

In the MARKETERS WITH AUTHENTICITY THRIVE chapter you comment about this issue...

Companies focus on growth... Franchise the business... End up hiring folks who aren’t as passionate as the founders... The story (company) loses its authenticity.

I see this as a challenge for Build-A-Bear Workshop and Krispy Kreme. (KKs recent issues aside A, B, C)... Both companies have been recognized for delivering unique customer experiences (telling unique stories). I’m wondering how they can maintain the experience as they increase their store counts...

You highlight a great example in the section called FAKING IT WITH ICE CREAM about Cold Stone Creamery. With growth, the story gets diluted and loses its meaning.

Any thoughts on how companies can get big and stay small? Can expand, yet keep the story (experience) authentic?

SETH: Well, I’m not sure that these companies WANT to stay authentic. I think they want to get big, go public, cash out and then, if they crash, well hey.

It’s a come to jesus moment for the founder. Yes, of course you can grow organically and keep it working (they say Morton’s steakhouse has done this). But it won’t be as fast and it won’t be as profitable and you’ll last a lot longer.

Comments

[Mike Duffy]

Seth's comments about "come to jesus" highlights an important question every business answers (one way or another): What are we trying to do here? Do we (a) get rich and cash out, or (b) do something that we really fundamentally enjoy doing and see where it goes? Note that bad things happen when owners are thinking (a) and saying (b).

Staying authentic as you grow means transmitting the "corporate DNA" without replication error. It's not easy, and may not even be possible. It certainly depends completely on who you hire as you grow (and then how you mentor/nuture them).

I really like the way you presented this "review/interview" - an introduction with links to each subsection. Thanks!

[Paul Williams]

Mike - thanks for your comments.

John and I have spent a considerable amount of time on this topic.

Seems one of the critical factors that causes problems is going public. The business shifts from being accountable to Main Street to Wall Street.