- Image by Chris Campbell via Flickr
I had the good (?) fortune to sit down with the CEO of a PR agency in Toronto recently. He had been at a seminar I attended regarding converging technologies and mediums and how they fit into the role of the PR professional. We got chatting and decided to have lunch together.
Now, I’m a pretty open guy to how businesses run themselves, but this lunch was an eye-opener.
The conversation turned naturally to the economy and the effect it’s having on agencies and clients alike. My lunch partner said he was finding it tough as his clients just weren’t spending, yet he was sure both would start needing his agency’s services again soon. I asked if he’d lost a lot of clients to the credit crunch – after all, being reduced to two clients must be extra tough.
His response floored me.
“Oh, no, we never have more than two clients at any time – we just concentrate on finding the biggest and most profitable ones and stick with them.” So, no small businesses or entrepreneurs, I asked. The answer: “Why would I want to deal with the little guy? How would that enhance my reputation?”
The lunch ended, we exchanged business cards and went our separate ways. I wondered if I should have probed him more on his views about clients, but the way he emphasized the “my reputation” part made me think he was only in business for one reason – his glory. Which normally means any arguments falling on deaf ears.
Yet perhaps I shouldn’t have been too surprised. Too many businesses in too many industries have forgotten about the little guy. Too many businesses think dollars over development. Too many businesses think pre-built over building.
Just when this mindset happened escapes me – what doesn’t escape me is the narrow-minded tunnel vision behind it.
Did the CEO of the Toronto PR agency start off as a ready-made success story? Did Richard Branson jump into the business world with Virgin already a huge success? Does being a large corporation guarantee success levels?
Of course not. Yet still the belief remains in many businesses that small is a necessary evil, to tolerate while the big boys gather to put small in its place.
These are dangerous thoughts.
True success comes from the building of relationships. Of loyalties being forged. Of give and take and the combining of good ideas and openness to encourage greatness.
Aim high – there’s nothing wrong with that. But just take a minute to think what’s going to get you higher – two giants 100 feet tall who control you, or hundreds of normal sized people who respect you.
The choice is yours – I know whose company I’d prefer to keep. How about you?
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Though I'm not surprised… it makes me want to retreat into the happy society of people in business because it can be a vehicle for the common good. – Weird thought I know. The gentleman makes be a bit sad to be honest.
I hear you, Liz – it does seem to be a view of someone that's stayed in a certain age and forgot how to move on. 80's "Wall Street", maybe?
Well anyone that sees business in a sack and pillage way rather than seeking healthy thriving ecologies of interdependence way to me is being used by 'the dark side'…if you'll excuse they hippy and the star wars references…
You're talking to a Star Wars nerd extraordinaire – you should stop by more often!
Good point though, and I guess the proof will be in the pudding further down the line.
The force is strong with you. (http://tinyurl.com/4rfbcq)
Sounds to me like that's one business man who won't be in business much longer. If you run into him again, tell him to send all the "small fries" our way. Heh.
It does make you wonder how he's managed to stay afloat so long. It's the typical boom-and-bust generation way of thinking – madness.
I've got his card – I'll make sure you're the first that benefits from his lack of vision.
Interesting post. I actually refer to those types of companies as emerging brands. The sky is the limit with young companies, and those who like a good challenge enjoy that. Those who fear they can't handle that challenge often do not.
So true, Rachel. What makes this guy's stance so bizarre is that his company would have been one of these "emerging brands" at one stage – imagine if no-one had given him a chance to start with?
This is just scary. I actually shuddered. And even if you operate under that strategy, I wouldn't announce it. Glad to say that I do not-and no one in PR that I know personally does either. When it's ALL about the profit and nothing else, there's a problem. Because that attitude shows.
I think ego overtakes sense when announcing publicly that little guys are "worthless". I'll b interested to see where the agency is in 12 months from now.
And sorry, had to come back to say that the "How do the small guys benefit me?" is ridiculous. What a winner.
While it's great to build a company with select clientele, it sounds as if this agency lead has disdain for new and emerging companies. While large companies may still have it, there is a passion and promise to small or new companies that is contagious. They may not have seven-figure account packages, they can and do pay for the best counsel. I'll make no apologies: we're as passionate about our clients success as they are – no matter where they are on-or-off the Forbes list.
And that's the true measure of a successful company, Jen – you know that there's no such thing as "best client" – we're all in it together. And you know for sure these "little guys" are the ones that you're going to enjoy success with together (and help through the tough times).
What this guy fails to realize is that small companies grow into big companies all the time. Wouldn't it be better to be in on the ground floor of someone who is growing their business than to ride on the coattails of a giant corporation whose stream of cash may be fleeting? Case in point – Nortel Networks.
Buddy can have his big corps and their deep pockets. But when the well runs dry it will be the small guys who win.
Great post!
All too true yet all so frequently ignored, Suze. Who knows, maybe one day we won't have to have these conversations – until then, here's to the little guys.
oh, and not that he'll listen or anything, but you may want to direct your acquaintance to this post by Julien – http://inoveryourhead.net/how-to-improve-your-bus...
Your post saddens me, but is no surprise. I talked to several ISVs about their market strategies a few months ago. All said – we aim for the largest 10% in our market – build and market to their needs. Anyone else is just too small to care about.
I understand marketing $ are tight. I know mass marketing is not cheap. But there are compromises that approach the middle market at least. It is one reason a lot of these companies see no benefit to social media or Internet marketing. They have 10 or 20 companies in their sights and nothing else! To me – it is marketing mules with blinders on…
The biggest problem with the views of these ISV's you spoke with, Mike, is that these "largest 10%" are quite often the ones at most risk from recession. They're the ones that are tied to stakeholder decisions; they're the ones with inter-departmental conflicts and approvals; they're the ones that don't care about your relationship either – if you're not providing the way they want you to, you'll be history.
On the other hand, the small-to-medium businesses are the ones that will use you and your expertise effectively, and in doing so, make you a more successful company because of it.
Funny, but a lot of the times, the larger the company, the smaller the thinking.
Danny, send him my way. He needs some customer sat and business coaching. All leads welcome sir! HAHAHA kidding – Great post.
Think there may be a bit of a line in front of you, Jason…
But I agree – there does seem to be an opportunity for a meeting of minds and ideas.
It reminds me of when a mentor said to me when I was in Marketing "I don't care how many awards you win with the ads you make…just bring in money into the front door" At the time many of the large firms only cared about awards and the big client portfolios… he was ahead of his time to look to the bottom line…seems like your lunch mate is still stuck on reverse thinking mode.
Sounds like your mentor was (is) the type of guy that many companies need as their guide. Makes you wonder what the CEO in question tells his own people and if they set up their own agency, would they be the same?
This is where the problem gets inherent for many industries – we take guidance from those at the top, who we're supposed to learn from. But what if the teaching is skewed to start with?