Week 45: Stumblers and Stars: Hambrick and Crozier

Question 1

What is the main focus of Hambrick & Crozier’s paper?

Answer 1

The challenges and success patterns for managing rapid growth in firms.

Question 2

What is the main challenge of “instant size” during rapid growth?

Answer 2

Firms quickly doubling or tripling in size, leading to disaffection, inadequate skills, and inefficient systems.

Question 2

How does a “sense of infallibility” affect firms during rapid growth?

Answer 2

Overconfidence in past strategies causes resistance to change, ignoring competitors and external changes.

Question 3

What is the impact of “internal turmoil and frenzy” in rapid growth?

Answer 3

Poor decision-making, turf battles, and difficulty integrating new hires into the company’s culture.

Question 4

What challenge arises from “extraordinary resource needs” during rapid growth?

Answer 4

Cash shortages, long employee hours, burnout, and strained managerial resources.

Question 5

What are the six success patterns for managing rapid growth mentioned in Hambrick & Crozier’s paper?

Answer 5

Envision and anticipate, build the team, save and reinforce the culture, manage dynamic tension, maintain structural smallness, and pay for performance.

Question 6

Why do founders struggle during rapid growth?

Answer 6

They excel in creation but often lack managerial skills for larger organizations.

Question 7

What is complementary leadership? (solution to CEO struggles)

Answer 7

Balancing the founder’s entrepreneurial drive with the expertise of experienced executives.