Central Desktop: “Growing pains” – why business expansion leads to inefficiency

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Hot on the heels of a bloody BYOD comes more discomfort, this time in the form of growing pains. This guest article looks at the reason why businesses become inefficient as they grow and how these issues can be avoided, drawing on an paper from 1972 for inspiration – if you’re running a small business or on the verge of creating a start-up this is a definite read!

We live in a start-up culture, where it seems as if everyone is able to have an idea and start a company. Many of these will fail, some will be a success. For those that are a success, they may find that the real challenges are not with that first product launch, but the inevitable growth that success bestows upon them.

The issues that face these companies are nothing new. In July 1972, Larry E. Greiner published Evolution and Revolution as Organizations Grow in the Harvard Business Review (on paper, of all things!). He describes a pattern that would be familiar to entrepreneurs and business owners everywhere – that of evolution, in which the business grows smoothly, followed by revolution, where the business goes through a crisis brought about by its own growth. Solving each crisis brings about another period of evolution. Despite its age, Greiner’s piece remains amazingly relevant, even if the companies of today are working in very different industries and producing very different products.

So what does cause a company to become inefficient as it grows? The first inefficiency falls squarely at the feet of the company founders.

Read the full article and find out more about Greiner and the five reasons why companies become inefficient as they grow over at Central Desktop.

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