Two situations, same decision process, different decisions because of understanding of “Size”.

A – Very Large Company A (vlcA) is looking for a supplier to provide a specialized service. The team assigned completes their research and determines Small Company B (scB) has the best product/solution and makes the recommendation to the executive team. The executive team reviews the recommendation and decides scB is “too small” to do business with, and selects one of the larger companies, Large Company C (lcC). Sounds like a good thing to do, right? Except here is the catch, lcC actually subcontracts the work to scB. Not understanding size in this case leads to an inefficient decision.

B – Large Company X (lcX) is looking for a software platform to solve a major problem. The team assigned completes their research and determines Large Company Y (lcY) and Smal Company Z (scZ) each have good products, but scZ has the superior product. When asked by the executives to assess the impact of company size, the team researches both companies and discovers lcX has many divisions but the entire development/support team dedicated to the platform they want to buy is about 25 people out of an organization of 500 plus. However, scZ only sells one software platform and the entire company’s development/support team of 80 out of 100 people is dedicated to the platform. Understanding size in this case leads to the correct decision.