Today’s Big Idea comes from Chris Zook and James Allen and their bestselling book “The Founders Mentality”. The book has the subtitle, “How to Overcome the Predictable Crises of Growth” and investigates why profitable growth is so hard to achieve and sustain.

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During their research, they found that many executives believe that profitable growth occurs by controlling the external environment. However, they also discovered that 90 % of the time when companies fail to achieve their growth targets the root causes are actually found in internal factors like for example:

 Increased distance to the front line
 Amplified bureaucracy
 And Magnified complexity

This is the growth paradox: Growth creates complexity, and complexity is the silent killer of growth.

Zook and Allen found that some companies manage to achieve sustainable growth without falling victim to the growth paradox.

They argue that these Companies share three traits—an insurgent mission, an owner’s mindset and an inherent obsession with the front line. Together these traits constitute “The Founder’s Mentality”.

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