The document management industry has undergone a transformative shift over the past decade. Today, less than 1% of industry leadership is under 40, and very few companies have proper succession planning or exit strategies in place. As a result, consolidation is occurring all across the industry as business owners look to retire. This consolidation trend can have some adverse consequences for clients whose contracts are sold. They tend to follow a pattern of dramatic rate changes and a decline in service. In particular, these clients typically see four “red flags” that serve as warning signs it’s time to seek an alternate document management solution.
Red Flags
- Has your new provider raised rates multiple times over a short period of time? If the language in your contract has changed to include exorbitant fees to leave, or you have experienced multiple rate increases in a short period of time, it may be time to find a new document management provider. Time is of the essence here, as changes take place 30 days after notice is given. If you notice this trend, read over your contract with a fine-tooth comb and ensure you know what you are signed up for – before it’s too late.
- Is it hard to speak with an actual person? When problems arise, do you waste valuable time trying to get through an automated call service? Did the friendly voice on the other end of the phone get replaced with someone who only knows you as an account number in a remote location? If this is the case, it may be time to look for a local alternative for your shredding or storage needs.
- Has service gone downhill? Consolidations or massive corporate roll-ups often change the culture of an organization. Everything becomes about the bottom line. Quotas and quarterly earnings must be met, and service becomes secondary, resulting in a dissatisfied staff and increased turnover.
- Do you know who you’re doing business with? If you suddenly have a new contract with a new company, do your own research. Ask for client references, check on NAID and other regulatory certifications. Read reviews from both clients and staff members.
Not all acquisitions are negative, and this trend will continue given the issues cited above. Secure Records Solutions is in the 1% of firms with leadership under the age of 40. As a local, family-owned business, we have positioned ourselves to serve our clients now and in the future. This independent business model allows us to make strategic decisions based on long-term growth instead of quarterly earnings calls.
Instead of just asking what will be profitable in the short term, we make business decisions based on these criteria:
The SRS Difference
- Can we effect positive change? At SRS, we are always improving, and we want to work with clients and other companies to create positive outcomes. If we can’t accomplish this, it’s probably not a good fit for us.
- Do we bring a unique perspective? Our favorite challenges are those where we can take an old problem and solve it with new thinking. This typically results in a lower cost for our clients and greater internal efficiencies internally.
- What will the end result be? When we do business with a client, we aren’t simply looking to treat symptoms; we are looking to cure the disease. We want to see a project through to the end and ensure that we’ve accomplished the goal of truly solving the problem, instead of simply selling a product or meeting a quota.
- Is the solution good for everyone? When we say everyone, we mean everyone – for our clients, our company and all the employees, and for the environment. Sustainability and creating less waste are important considerations when we take on big jobs. Ultimately, the how matters more than the what.
If you have experienced any of these red flags and would like to explore the possibility of working with a local, family-owned business, contact us today.
