Eric G. Flamholtz & Yvonne Randle 
Growing Pains 
Building Sustainably Successful Organizations

An insightful and practical toolkit for managing organizational growth

Growing Pains is the definitive guide to the life cycle of an organization, and the optimization strategies that make the organization stronger. Whether growth is rapid, slow, or not occurring at all, this book provides a host of solid tools and recommendations for putting everything in order. Now in its fifth edition, this invaluable guide has been fully updated to reflect the current economic climate, and includes new case studies and chapters discussing nonprofit life cycle tools, leadership challenges and the ‘leadership molecule’, and real-world applications of the frameworks presented. The latest empirical research is presented in the context of these ideas, including new data on strategic organizational development. Mini-cases that illustrate growth management issues have been added throughout, with additional coverage of international entrepreneurship and companies that provide a frame of reference for the perspective being developed.

Growing pains are normal, and a valuable indicator of organizational health, but they indicate the need for new systems, processes, and structure to support the organization’s size. This book provides a practical framework for managing the process, applicable to organizations of all sizes.

* Understand the key stages of growth and the challenges of each

* Measure your organization’s growing pains and development

* Deploy new tools that facilitate positive organizational development

* Make the necessary transitions required to ensure sustainable success

Some companies, even after brilliant beginnings, lose their way as growth throws them for a loop. Growing Pains identifies the underlying factors that promote long term success, and gives you a framework for successfully managing the transitions of growth.

Table of Content

Preface vii

Acknowledgments xiii

Part I A Framework for Developing Successful Organizations 1

Chapter 1 Transitions Required to Build Sustainably Successful Organizations¯® 5

Chapter 2 Building Sustainably Successful Organizations¯®: The Pyramid of Organizational Development 25

Chapter 3 Identifying and Surviving the First Four Stages of Organizational Growth 47

Chapter 4 Managing the Advanced Stages of Growth 71

Chapter 5 Recognizing Growing Pains and Assessing the Need for Change 93

Part II Mastering the Tools for Building Sustainably Successful Organizations¯® 113

Chapter 6 Strategic Planning 117

Chapter 7 Organizational Structure 159

Chapter 8 Organizational Control and Performance Management Systems 185

Chapter 9 Management and Leadership Development 215

Chapter 10 Corporate Culture Management 243

Part III Special Aspects of Organizational Transitions in Growing and Changing Enterprises 275

Chapter 11 Building Sustainably Successful Nonprofits 277

Chapter 12 The Challenge of Leadership Throughout the Organizational Life Cycle 305

Chapter 13 Building Sustainably Successful Organizations¯®: The Frameworks, Tools, and Methods in Action 331

About the Authors 363

Index 365

About the author

ERIC G. FLAMHOLTZ is president and cofounder of Management Systems Consulting Corporation. He teaches in various Executive Education programs at UCLA’s Anderson School of Management, where he is Professor Emeritus. He also teaches Executive Education programs for various universities in China.

YVONNE RANDLE is executive vice president and co-owner of Management Systems Consulting Corporation, where she has been a consultant since 1983. She also lectures at UCLA’s Anderson School of Management in various Executive Education programs.