Accelerated growth: helping companies get and stay on the fast track

Accelerated growth is the driving force of many technology intensive entrepreneurial companies throughout the world. In fact, fast growing companies drive new job creation and economic development in the regions and countries where they are located. However, accelerated growth may become uncontrolled growth and create major business, organisational and personal problems for the company, entrepreneurs, and managers. In some cases, it may even lead to collapse and bankruptcy. Thus, the challenge to both entrepreneurs and economic development organisations is not to stifle growth, but to manage growth, and, if possible, optimise growth. This paper discusses the three stages of growth of a new venture, and the psychological and business-related factors leading to uncontrolled growth. In order to manage growth, it is necessary to understand that growth does not occur according to a linear, smooth evolutionary pattern, but rather through alternate periods of evolution and revolution punctuated by crises. Each revolutionary period breeds the next crisis, and solution of the crisis generates the next period of evolutionary growth. The various stages of evolution are described, and guidelines offered on how management can anticipate and control the ensuing revolutionary crises. Finally, two examples of accelerated growth are discussed as case histories, taken from experience at Rensselaer Polytechnic Institute.