Chapter 6. A New Growth Model

Bureaucratic Companies Begin as Entrepreneurial Firms

Long before large, public organizations become stagnate and sluggish, they often begin as small, entrepreneurial companies. They have dynamic, visionary leaders driving their organization forward through innovation, charisma, and hard work. As these companies grow and expand their market share, individuals flock to them seeking employment. And why not? They’re on a roll. They have momentum. These high-growth companies have the opportunity to select the best and the brightest. They raise cheap capital from the U.S. capital markets through an IPO and everything seems to be going right. They have bright, happy people, plenty of cheap capital to fuel expansion, Wall ...

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