Successfully Managing the Hidden Danger of Rapid Growth: Theoretical Framework, Measurement Tools, and Practical Applications

Abstract

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.