This Case is about GROWTH STRATEGY, MANAGING ORGANIZATIONS, MANAGING PEOPLE
PUBLICATION DATE: May 01, 2010 PRODUCT #: CMR459-HCB-ENG
Lots of startup companies go through the so-called “entrepreneurial crisis” when they reach a headcount someplace in between 50 and 100 staff members. At this moment, the CEO and her group need to shift from an individual to an expert management design. Management systems play an important function in handling this shift efficiently. Contrary to the common belief that the advancement of such systems get rid of the entrepreneurial spirit, start-ups that execute these systems are connected with faster growth, bigger size, and a lower turnover of their CEOs. Financial backing backed start-ups are most likely to execute these systems quicker. This post likewise analyzes why these systems are embraced and the various functions they play in high-growth companies.