Central planning doesn’t work. So why are thousands of companies still using it? It’s the natural way for a business to grow, with each layer of the company continually added to the bottom of the pyramid. The fallacy is that one person at the top, typically the Founder or CEO, has all the answers. Unfortunately, this model puts the focus on headquarters instead of on the customers.
That’s why small businesses grow faster, generate more revenue, and create more jobs than big corporations. Decisions are made by the people who know the customers personally and understand every aspect of the business, inside and out. There is no bureaucracy.
How do you maintain the vigor and customer focus of a small business once you grow beyond the million-dollar revenue mark? The answer is a contrarian, decentralized model. In this paradigm, front-line businesses and departments are accountable for growing revenue and profits while remaining compliant and adhering to the parent company’s values.
The fact that the parent company doesn’t control compliance directly or dictate corporate culture does not mean that those components aren’t important. In actuality, it means just the opposite: that compliance and culture are so critical that they should be handled by experts, not dilettantes. The people who work directly with the customers and employees should set policies and procedures that serve them best while maintaining compliance and upholding core values of the parent company, which in our case, is Eli Global.
The fact that Eli Global lives this model in our approach to M&A and financing has allowed us to experience rapid growth while maintaining the vigor and customer focus of a startup. As we’ve grown, our customer base has never known that the firm was expanding behind the scenes, and we’re immeasurably proud of that fact. Our ability to remain agile and customer-centered will always be at the core of who we are, how we approach mergers and acquisitions, and how we finance businesses—no matter how many employees we have on staff.