Managing the Dark Side of Growth

Growth is not linear, but a rollercoaster ride of adrenaline highs and stomach-churning lows. Business leaders need both the stamina and ability to shift their approach when necessary to keep their companies on a sustainable growth path in the long term. The authors tracked more than 110 CEOs of young, innovative companies from more than 20 different countries and several industries for more than five years. Their research highlights an important paradox in managing growth: The same behaviors that are necessary or beneficial to grow a firm in the good times can easily become traps in the bad. Being aware of this, and having the capabilities to manage it, notably increases the probability of success. Specifically, the authors identify four shifts of mindset that leaders in volatile work environments need to make if they are to be effective: from sticking to their guns, to collaborating with their critics; from being the protagonist, to becoming an enabler; from always being one step ahead, to making sure everyone is on the same page; from living with extremes, to staying firmly on track. Above all, CEOs need to remain grounded in a strong set of personal values, such as humility, kindness, patience and fair treatment, which will ultimately help organizations deal better with the storms and bounce back more rapidly to the sunny days of growth.