Successfully Managing the Hidden Danger of Rapid Growth: Theoretical Framework, Measurement Tools, and Practical Applications
American Journal of Theoretical and Applied Business
Volume 4, Issue 2, June 2018, Pages: 48-56
Received: Apr. 23, 2018;
Accepted: May 31, 2018;
Published: Jun. 14, 2018
Views 1300 Downloads 97
Eric Flamholtz, Anderson School of Management, UCLA, Los Angeles, USA
Yvonne Randle, Management Systems Consulting Corporation, Los Angeles, USA
Simon Kuang Yaojun, KS Consulting, Shenzhen, China
Tony Wong Xiaohong, KS Consulting, Shenzhen, China
Ivy Sun Qian, KS Consulting, Shenzhen, China
Follow on us
All business organizations seek growth. Very rapid growth is celebrated as an indication of organizational success. But while growth in general, is good, too much growth too rapidly can be a very serious problem for organizations if they do not manage it appropriately. This problem is termed the “hidden dangers” of very rapid growth. Based upon decades of experience and research, this article examines how a company can identify and assess the severity of the dangers of too rapid growth. Accordingly, the article identifies the ten most common organizational growing pains; presents a method for measuring their severity and interpreting the degree of risk posed by of various “levels” (numerical scores) of growing pains; examines a case example of a company dealing with growing pains; and proposes some practical actions steps to reduce growing pains and their related risks (danger). The article proposes that the optimal strategy for a firm that anticipates rapid growth is to build an infrastructure sufficient for the size of the organization it anticipates becoming prior to actually reaching that size.
Rapid Growth Growing Pains, Hidden Dangers, Infrastructure
To cite this article
Simon Kuang Yaojun,
Tony Wong Xiaohong,
Ivy Sun Qian,
Successfully Managing the Hidden Danger of Rapid Growth: Theoretical Framework, Measurement Tools, and Practical Applications, American Journal of Theoretical and Applied Business.
Vol. 4, No. 2,
2018, pp. 48-56.
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Mitchell, R. “Tesla’s Troubles,” Los Angeles Times. Business, pp. 1 and 7, February 18, 2018.
M Mitchell, R. “Tesla’s Troubles,” Los Angeles Times. Business, pp. 1 and 7, February 18, 2018itchell, R. “Tesla’s Troubles,” Los Angeles Times. Business, pp. 1 and 7, February 18, 2018.
Flamholtz, E. and Y. Randle, Growing Pains: Building Sustainably Successful Organizations, Wiley 2016.
Source: Management Systems growing pains data base, unpublished. 1980 to present.
Flamholtz, E. G. (2002-03) “Towards an Integrative Theory of Organizational Success and Failure: Previous Research and Future issues,” International Journal of Entrepreneurship Education, Vol. 1, Issue 3, pp. 297-319.
Flamholtz, Eric G. and Z. Aksehirli, (2000) Organizational Success and Failure, an Empirical Test of a Holistic Model, European Management Journal, 18, (5) 488-498.
Flamholtz, E. and Hua, Wei, (2002). Strategic Organizational Development and the Bottom Line: Further Empirical Evidence, European Management Journal, 20 (1), 72-81.
Flamholtz, E. (2001). “Corporate Culture and the Bottom Line,” European Management Journal, 19 (3), 268-275.
Flamholtz, E and Kurland, S. Strategic organizational Development, infrastructure and Financial Performance: An Empirical Test, International Journal of Entrepreneurial Education, Vol 3, Issue 2 (2005), pp. 117-142.
Flamholtz E and Y. Randle (1987) The Inner Game of Management, AMACOM.
McGee, M. and E. Flamholtz (2005), The Transformation from Entrepreneurship to professional Management at Pardee Homes, International Journal of Entrepreneurial Education, Vol 3, Issue 2 pp. 185-204
Nayar, M. and Flamholtz, E.(2005) The Transformation from Entrepreneurship to professional Management at Unitech Systems, International Journal of Entrepreneurial Education, Vol 3, Issue 2 pp. 169-184.