Growing Pains: Transitioning from an Entrepreneurship to a Professionally Managed Firm -- Contents -- Foreword -- Preface -- Entrepreneurship Versus Professional Management -- Intended Audience -- Overview of the Contents -- Acknowledgments -- Part One: A Framework for Developing Successful Organizations -- The Second Challenge for Entrepreneurs -- Making an Organizational Transition -- 1: How to Build Successful Companies -- The Nature of Organizational development -- The Foundation of a Business -- Six Key Organizational Development Tasks -- The Pyramid of Organizational development -- Implications of the Pyramid of Organizational Development -- Research Support for the Pyramid -- The Pyramid as a Lens to Build and Evaluate Organizations -- Starbucks Coffee Company: Successful Use of the Pyramid -- Boston Market: A Contrast with Starbucks -- Summary -- 2: Identifying and Surviving the First Four Stages of Organizational Growth -- Stages of Organizational Growth -- Stage I: New Venture -- Stage II: Expansion -- Stage III: Professionalization -- Stage IV: Consolidation -- Differences Between Entrepreneurial and Professional Management -- Discrepancies Between Growth and Organizational Development -- Managing the Transition Between Growth Stages -- Perform an Organizational Evaluation or Audit -- Formulate an Organizational Development Plan -- Implement the Organizational Development Plan and Monitor Its Progress -- Managing the Transition: Maxicare Versus PacifiCare -- Summary -- 3: Recognizing Growing Pains and Assessing the Need for Change -- The Nature of Growing Pains -- The Ten Most Common Organizational growing Pains -- Measuring Organizational Growing Pains -- Scoring the Survey -- Interpreting the Scores -- Growing Pains Scores for Different Business Sizes and Industries -- Use of Growing Pains Measurements in Making the Transition.

Growing Pains Scores and Their Management at Grange, Inc. -- Organizational Growing Pains, Growth Rates, and Infrastructure -- Growing Pains and Financial Performance -- Minimizing Organizational Growing Pains -- Summary -- Part Two: Management Strategies for Each Stage of Organizational Growth -- 4: The New Venture and Expansion Stages -- Developing Successful Stage I organizations -- Key Issues at Stage I -- Hotmail: A Classic Example of Entrepreneurial Success -- Significant New Venture of the 1980s: Personal Computers -- Significant New Ventures of the 1990s: Internet Firms -- Other Examples of New Venture Success -- Significant New Ventures of the New Millennium: International Firms -- Keys to a Successful Stage I Firm -- Ability to Define a Market Need -- Ability to Develop a Relevant Product or Service -- Ability to Develop an Organization to Provide the Product or Service -- Developing Successful Stage II organizations -- The Osborne Syndrome -- Other Examples of Problems at Stage II -- Keys to a Successful Stage II Firm -- Ability to Acquire Resources -- Ability to Develop Complex Operational Systems -- Managing the New Venture and Expansion Stages: A Comparison of Osborne and Compaq -- Identifying a Market and Developing the Product -- Acquiring Resources and Developing Operational Systems -- Entrepreneurial Vision -- Summary -- 5: The Professionalizing Stage -- Developing a Successful Stage III organization -- Developing a Successful Stage III organization: The Case of Metro Realty -- Growing Pains -- Making the Transition -- Problems Encountered -- Program Outcomes -- Other Examples of Success with Professionalization -- Professionalization of Federal Express -- Professionalization of Starbucks Coffee -- Professionalization of American Century Investors -- Keys to a Successful Stage III Firm -- Ability to Plan and Develop Strategy.

Ability to Develop an Appropriate Organization Structure and Controls -- Ability to Provide Management and Leadership Development -- Willingness to Transform to Professional Management -- Summary -- 6: The Consolidation Stage -- Developing Successful Stage IV Organizations -- Background of Tempo Products -- Elements of Tempo Products' Culture and Their Attenuation -- Tempo Products Is a Family -- Decision Makers Are Few and Invincible -- ''Get it Done with Excellence'' -- Our Company Is Unique -- We Play It by Ear -- We Have Fun -- We Do Our Own Thing -- Redefining a Culture -- Organizational Design -- Strategic Planning -- Management Development -- Culture Management -- The New Tempo Products Culture and Its Implementation -- Tempo Products is One Family, Not a Collection of Separate Families -- Decisions Will Be Made at All Levels of the Company, and People Will Be Held Accountable for Their Decisions -- Get It Done With Excellence -- Our Company Can Learn from Others -- We Can No Longer Play It by Ear -- Have Fun, But Not All the Time -- ''Do Your Own Thing and Do It Well'' -- Postscript -- Keys to a Successful Stage IV Firm -- Summary -- Part Three: Mastering the Tools of Professional Management -- 7: Strategic Planning -- Strategy Defined -- The Nature of Strategic Planning -- Strategic Issues -- The Strategic Planning Process -- Step 1: The Environmental Scan -- Step 2: The Organizational Assessment -- Output of the First Two Steps -- Step 3: Analysis and Resolution of Key Strategic Issues -- Step 4: The Strategic Business Plan -- Step 5: Budgeting -- Step 6: Management Review -- Royce Medical Corporation: Development of a Strategic Plan -- Company Background -- Developing the Strategic Plan: The Environmental Scan and Organizational Assessment -- Developing the Strategic Plan: The Retreat.

Developing the Strategic Plan: Addressing Key Strategic Issues -- Developing the Strategic Plan: The Written Strategic Business Plan -- Developing the Strategic Plan: The Budgeting Process -- Implementing the Strategic Plan: Quarterly Management Review and Implementation Meetings -- Taking the Planning Process to the Next Levels: Departmental and Individual Planning -- Results of the Planning Effort at Royce Medical -- Postscript -- Ongoing Functions of Strategic Planning -- Strategic Planning at Different Stages of Organizational Growth -- Stage I -- Stage II -- Stage III -- Stage IV -- Consultants and Strategic Planning Departments -- A Final Note -- Summary -- 8: Organizational Structure -- Nature of Organizational Structure -- Three Levels of Organizational Structure -- Alternative Forms of Organizational Structure -- Functional Organizational Structure -- Divisional Organizational Structure -- Matrix Organizational Structure -- Criteria for Evaluation and Design of Organizational Structure -- Case Studies of Organizational Structure -- Design Corporation -- Hitek Manufacturing -- GoodEats, Inc -- Pardee Homes -- Starbucks Coffee -- Organizational Structure at Different Stages of Growth -- Stage I -- Stage II -- Stage III -- Stage IV -- Summary -- 9: Management and Leadership Development -- The Nature of Management and Leadership Development -- Functions of Management Development -- Enhancing Management Skills -- Shaping the Corporate Culture -- Promoting Leadership Style -- Rewarding and Recognizing Managers -- Critical Dimensions of Management and Leadership Development -- Change in Role Concept -- Change in Skills Possessed -- Change in Individual Psychology -- Management Development Required at Different Organizational Levels -- Bell-Carter Foods, Inc.: Management Development in the Transition to Professional Management.

Corporate Background -- Growing Pains -- Objectives of Bell-Carter's Management Development Program -- Nature of the Program -- Impact of the Program -- Postscript -- Management Development at Different Stages of Organizational Growth -- Stage I -- Stage II -- Stage III -- Stage IV -- Investment in Management Development -- Summary -- 10: Organizational Control and Performance Management Systems -- The Nature of Organizational Control -- Control Motivates People to Focus on Goals -- Control Influences the Probability of Goal Achievement -- Tasks of Performance Management Systems -- Design of Control Systems -- Key Components of a Performance Management System -- Key Result Areas -- Objectives -- Goals -- Measurement System -- Feedback or Reporting System -- Performance Evaluation -- The Reward System -- The System as a Whole -- The Organizational Scoreboard -- Illustration of an Organizational Scoreboard -- Improving the Balanced Scorecard -- Design and Evaluation of Control Systems' Effectiveness -- Increasing Goal Congruence -- Dysfunctional Behavior -- Use of Performance Management Systems at the Organizational Level: Superior Alarm Systems Case Study -- Development of Control Systems -- Improvements in the Control System -- Use of Control Systems at an Individual Level: The Performance Appraisal Process at Southern California Presbyterian Homes -- Revision of Job Descriptions -- Design of the New Performance Appraisal Forms -- Use of the Form -- Training in Conducting Effective Performance Appraisals -- Results -- Control Systems at Different Stages of Organizational Growth -- Stage I -- Stage II -- Stage III -- Stage IV -- Summary -- 11: Effective Leadership -- The Nature of Leadership -- Styles of Leadership -- The Autocratic Style -- The Benevolent-Autocratic Style -- The Consultative Style -- The Participative Style.

The Team (Consensus) Style.