Smart Growth: Building an Enduring Business by Managing the Risks of Growth (Google eBook)

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Columbia University Press, Aug 13, 2013 - Business & Economics - 230 pages
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Wall Street believes that all public companies should grow smoothly and continuously, as evidenced by ever-increasing quarterly earnings, and that all companies either "grow or die." Introducing a research-based growth model called "Smart Growth," Edward D. Hess challenges this ethos and its dangerous mentality, which often deters real growth and pressures businesses to create, manufacture, and purchase noncore earnings just to appease Wall Street.

Smart Growth accounts for the complexity of growth from the perspective of organization, process, change, leadership, cognition, risk management, employee engagement, and human dynamics. Authentic growth is much more than a strategy or a desired result. It is a process characterized by complex change, entrepreneurial action, experimental learning, and the management of risk. Hess draws on extensive public and private company research, incorporating case studies of Best Buy, Sysco, UPS, Costco, Starbucks, McDonalds, Coca Cola, Room & Board, Home Depot, Tiffany & Company, P& G, and Jet Blue. With conceptual innovations such as an Authentic Earnings and Growth System framework, a seven-step growth funnel pipeline, a Growth Decision Template, and a Growth Risks Audit, Hess provides a blueprint for an enduring business that strives to be better, rather than simply bigger.

  

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Contents

BUILDING AN ENDURING COMPANY BY MANAGING THE RISKS OF GROWTH
1
Defining the Growth Mental Model
11
What Is the Growth Mental Model?
12
Smooth and Continuous GrowthWall Street Rules
13
Earnings Game Example
16
Why Should Your Company Grow?
18
Tiffany Co Case
20
Smooth and Continuous Company Growth THE EXCEPTION NOT THE RULE
31
Growth Progressions
78
Darden GrowthInnovation Model
80
Best Buy Co Inc Case
83
Biology THEORIES OF GROWTH
97
Complexity Theory
100
Procter Gamble Company Example
102
Defender Direct Inc Case
110
Smart Growth AUTHENTIC GROWTH
123

McGrath Study
32
Lipton
33
McKinsey Study
34
Hess s Organic Growth Index Studies
35
Wiggins and Ruefli Study
37
ConclusionSix Studies
38
Sysco Corporation Case
40
Economics THEORIES OF GROWTH
53
Industrial Economics
54
A ResourceBased View of the Firm
56
Creative Destruction
57
Complexity Economics
58
Ecological SteadyState Economics
59
EconomicsTheories of Growth
60
McDonalds Corporation Case
61
Organizational Design and Strategy THEORIES OF GROWTH
73
Sustainable Competitive Advantage
74
DisclosureTransparency of the Earnings Game
124
What Is the Impact of the Earnings Game?
125
CocaCola Company Case
127
Managing the Risks of Growth PUBLIC COMPANIES
137
Growth Risks Audit Checklist
138
Starbucks Coffee Example
141
JetBlue Example
148
Home Depot Inc Case
149
HarleyDavidson Example
158
Managing the Risks of Growth PRIVATE COMPANIES
163
Room Board Case
170
It Is Time for Smart Growth
181
Smart Growth
183
Costco Wholesale Corp Example
185
United Parcel Service Case
187
Conclusion
197
Copyright

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About the author (2013)

Edward D. Hess is professor of business administration and Batten Executive-in-Residence at The Darden Graduate School of Business at the University of Virginia. He founded both the Center for Entrepreneurship and Corporate Growth and the Values-Based Leadership Institute at Goizueta Business School at Emory University.