The outgrown organization

“The good old days meet a brave new world”

The outgrown organization is bursting at the seams. It has expanded beyond its original organizational model and become too large and complex to be controlled effectively by a small team of senior executives. Because decision-making authority has not yet been democratized, much of the organization’s potential remains untapped.

Power is closely held at the top, so the outgrown organization tends to react slowly to market developments and often cannot get out of its own way. People in the middle may see opportunities for positive change, but it is too hard to move those ideas through the organization. The legacy of top-down direction and decision-making is well entrenched.

People in an outgrown organization are motivated more by values and pride than by incentives and rewards. Workarounds are common because process and internal issues get in the way of focusing on markets and customers. Top leaders typically deliver consistent messages, and collaboration runs high, but influence still depends mostly on title and role. What worked when the organization was smaller now stunts growth and career development.