CHAPTER 27 Nerds Galore


Director, Enterprise Risk Management, Hydro One Networks Inc.

Nerds Galore (NG) is a Canadian service company with 1,000 employees working out of offices in 12 Canadian cities; the head office is in Edmonton, Alberta. NG provides full-service information technology (IT) support to small and medium-sized Canadian businesses, including help desk, on-site troubleshooting, security, network setup and support, backup services, wireless networks, hardware and software procurement, and website design and hosting solutions.

Nerds Galore was formed in 2000 in the garage of its founder, Jeeves Stobes. NG has enjoyed strong growth in its segment and has an excellent reputation with its customers. In the beginning, NG focused on a particular customer subsegment, small start-up businesses, especially on low-tech businesses such as boutique services. Lately its strategy has shifted more to midsize customers (which have deeper pockets and less chance of going broke) with more sophisticated technology needs.

Recently there have been problems for NG.

There has been steady decline in customer satisfaction, as shown in Exhibit 27.1.


Exhibit 27.1 Nerds Galore Customer Satisfaction

Following a thorough investigation and follow-up with many of NG's key customers, the Executive Team has concluded that the main cause of this has been high internal staff turnover, ...

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