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Getting Bigger by Growing Smaller
Book

Getting Bigger by Growing Smaller

A New Growth Model for Corporate America

Joel M. Shulman and Thomas T. Stallkamp
FT Prentice Hall, 2004

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

"Bigger is not always better" sounds right, but the patina of sweat on executive foreheads in boardrooms worldwide stems from the mandatory requirement to increase short-term revenues constantly in ever greater amounts. The problem with the corporate fixation on bigness is that size often brings a less desirable quality: unresponsiveness. That helps explain why the lifespan of the average Fortune 500 corporation is about 50 years. Now comes author Joel M. Shulman to suggest a mechanism your company can use to avoid that burnout lifecycle. In a sophisticated book targeted to tactical thinkers, he proposes that you consider the Strategic Entrepreneurial Unit (SEU). He explains that establishing a diverse portfolio of small-scale entrepreneurial enterprises within a parent organization can help convert a large, unwieldy corporation into a more enterprising, forward-looking company. And, then, he tells you how. This capably written, insightful manual is very soundly based on practical business realities and experience. getAbstract.com recommends it highly to business strategists and executives who guide the long-term well being of their companies.

Take-Aways

  • Most corporate reward structures encourage executives to engage in short-term thinking. This is to the organization’s detriment.
  • The average lifespan of major corporations is about 54 years, after which many dwindle to ineffectiveness.
  • Most executives who want to stimulate near-term revenue emphasize large-dollar projects with immediate returns, such as acquisitions.

About the Authors

Joel M. Shulman is an Associate Professor of Entrepreneurship at Babson College. He directs the global Shulman Review Program for investment professionals. He consulted for Ford, Freddie Mac, Kmart, Sears, UNISYS and the World Bank. His books include How to Manage and Evaluate Capital Expenditures. Thomas T. Stallkamp is vice chairman and CEO of MSX International, a provider of collaborative enterprise services. Stallkamp serves on the boards of Visteon Corporation and Baxter International. He teaches at Babson College’s Graduate Entrepreneurship Center.

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