2 August Being the Wrong Size (...right niche...)

[Paul Terlemezian]

Internal training organizations will struggle to achieve the right size unless their performance metrics are directly tied to the success of the organizations that they service.

 

Early in my career I was exposed to the ire of the sales organization whenever a class was cancelled dut to low enrollment. While we could argue that the learner would have a better experience in a larger class the sales organization could argue that delaying the ability of the salesperson to perform until the next scheduled class would cost the company more than the cost of running a small class. Two distinct metrics were being applied correctly and at least one organization ended up being unhappy.

 

External training organizations will struggle to achieve the right size if they become too dependent on a single client.

 

If the operating plan would be devastated by the loss of any single client then the external training organization is not the right size. From the beginning it must avoid the lure of focusing on a single client. I suggest building a solid and varied set of clients before approaching the single large client that could distract you from the long term viability of your company. An exception to this could be if your desire is to be acquired/merged by the client.