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Smart Growth: Building an Enduring Business by Managing the Risks of Growth (Columbia Business School Publishing) [Hardcover]

Edward D. Hess
5.0 out of 5 stars  See all reviews (5 customer reviews)

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Book Description

March 1, 2010 Columbia Business School Publishing

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.


Frequently Bought Together

Smart Growth: Building an Enduring Business by Managing the Risks of Growth (Columbia Business School Publishing) + The Road to Organic Growth: How Great Companies Consistently Grow Marketshare from Within + Grow to Greatness: Smart Growth for Entrepreneurial Businesses
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Editorial Reviews

Review

This book will challenge your basic assumptions about business and growth. It needs to be read and talked about in both companies and business schools.

(R. Edward Freeman, Darden Business School, and coauthor of Managing for Stakeholders: Survival, Reputation, and Success )

Smart Growth will bend your mind, challenge your assumptions, and set you on a new growth trajectory. If you want to understand how following advice from Wall Street can doom you to destruction, read this book.

(Richard D'Aveni, Tuck School of Business at Dartmouth College, and author of Hypercompetition and Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power )

Warning against the creeping corruption of 'managed earnings' and 'making the numbers,' Edward D. Hess wisely urges business manager-leaders to keep their focus on the real growth of getting better, not bigger, and creating true value, not short-term earnings per share.

(Charles Ellis, author of Winning the Loser's Game: Timeless Strategies for Successful Investing )

In this masterful work, Edward D. Hess shows us how companies can grow in a healthy and organic manner, one that is sustainable and beneficial for all stakeholders, including society as a whole.

(Raj Sisodia, Bentley University, and coauthor of Firms of Endearment: How World Class Companies Profit from Passion and Purpose )

Hess offers the reader a thoughtful critique of the assumptions underlying the prevailing logic for the growth imperative that is so widely accepted.

(Robert K. Kazanjian, Goizueta Business School, Emory University, and coeditor of The Search for Organic Growth )

Hess provides insight as well as prescriptions for how to lead effectively and how to grow intelligently.

(Kim Cameron, Ross School of Business and the School of Education, University of Michigan, and author of Positive Leadership: Strategies for Extraordinary Performance )

Hess's insight and research provide a navigational path that illuminates key success factors and models that drive exponential growth.

(Jeffrey S. Shuman, Harris Corporation )

Hess takes dead aim at one of the sacred shibboleths of business—the notion that companies must 'grow or die'—and scores a bull's-eye. He makes a devastating case and demonstrates how destructive the blind pursuit of growth can be, and has been, to businesses of all types, especially publicly-owned ones. Along the way, Hess maps an alternative approach to managing business growth that focuses on the long-term health of the enterprise. It's a powerful argument and one that should be taken to heart by corporate executives, entrepreneurs, and policymakers alike.

(Bo Burlingham, editor-at-large of Inc. magazine and author of Small Giants: Companies That Choose To Be Great Instead of Big )

A new and radical contribution to business thought... Hess provides a blueprint for building an enduring business that strives to be better, rather than simply bigger.

(Dominique James San Francisco Book Review June 2010)

Named one of Inc.'s Best Books for Business Owners 2010

(Inc. 12/1/10)

Named one of the Toronto Globe & Mail's Top 10 Managing Books for 2010

(Toronto Globe & Mail 12/11/10)

This book is easily read and provides keen advice for individuals and companies that are involved in company strategic planning. If you are thinking about growing your company in a smart way, this is a must-read.

(Yang Fan Asheville Citizen Times 9/25/2011)

Review

Smart Growth is a provocative and useful evidence-based approach to understanding the principles of corporate growth.

(Mary Ann Glynn, Boston College )

Product Details

  • Hardcover: 248 pages
  • Publisher: Columbia University Press (March 1, 2010)
  • Language: English
  • ISBN-10: 0231150504
  • ISBN-13: 978-0231150507
  • Product Dimensions: 6 x 0.8 x 9 inches
  • Shipping Weight: 1 pounds (View shipping rates and policies)
  • Average Customer Review: 5.0 out of 5 stars  See all reviews (5 customer reviews)
  • Amazon Best Sellers Rank: #572,476 in Books (See Top 100 in Books)

More About the Author

Edward D. Hess is a Professor of Business Administration and Batten Executive-in-Residence at the Darden Graduate School of Business, The University of Virginia.He spent over 30 years in the business world prior to joining academia as a lawyer, investment banker, strategy consultant, and entrepreneur.

He is the author/editor of 10 books, over 60 business school cases, and over 60 articles dealing with high performance organizations, growth, values-based leadership, and family businesses. His current research is in the areas of Smart Growth, managing the challenges of private company growth,growth leadership, growth systems, growth processes, and enduring organizations. His work can be found @ www.EDHLTD.com. His work has appeared in over 250 media outlets worldwide the last 4 years including WSJ Radio, Dow Jones Radio,Bloomberg Radio, CNBC, NPR, Fox Business News, Forbes, Bloomberg, Business Week, Investor's Business Daily, CFO Magazine, Leadership Excellence, Chief Learning Officer, Washington Post, Financial Executive,Big Think, Business Insider, MSNBC Radio, and Money Magazine.

He has extensive experience advising and financing growth companies and multi-generational family businesses. He also has extensive research and consulting experience in the areas of public company organic growth and is the co-author of the Darden Growth/Innovation Model. His organic growth research has produced the concepts of The Growth System, The Growth Risks Audit, The Organic Growth Index financial model, and The Organic Growth Progression.

His business experience includes tenures with Warburg Paribas Becker, Boettcher & Company, The Robert M. Bass Group, Jones Lang Wooten, and Arthur Andersen Finance.

He is a Magna Cum Laude graduate of the University of Florida, and obtained a J.D. from the University of Virginia and an LL.M. ( Taxation) from New York University.

He was raised in Carrollton, Georgia and worked his way through college as a student football mathematician for the Florida Gators. He is happily ( most days) married, loves to cook, travel, read, and play with his grandchildren and two tibetian terriers.

Customer Reviews

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Most Helpful Customer Reviews
1 of 1 people found the following review helpful
5.0 out of 5 stars Wonderful read, right on target. March 18, 2010
Format:Hardcover|Amazon Verified Purchase
If you are thinking about growing your organization, this is a must read. Ed's use of case studies brings business theory alive and gives excellent insight into the key factors that are essential for sustainable growth.
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1 of 1 people found the following review helpful
5.0 out of 5 stars Timely, incisive, and useful March 17, 2010
Format:Hardcover
Given the business fiascoes of the first decade of the twenty-first century, this book is certainly timely. In terms of its timeliness, it only could have been better if it had come sooner. The message of this book is an important one.

What I enjoy most, in addition to the book's message, is Hess' illustrations. They are practical and relevant, and varied enough that business people should be able to find many that they will be able to relate to and draw from.

The real trick will be getting people to consciously choose to apply Smart Growth principles rather than react to the urgent and pressing myth of the necessity to set and meet increased quarterly earnings at all costs.
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1 of 1 people found the following review helpful
5.0 out of 5 stars Smart Book for Smart Leaders March 16, 2010
Format:Hardcover|Amazon Verified Purchase
Ed Hess asserts that the business community--our whole economy, really--has been driven by a pervasive myth about growth: that it can be continuous and smooth...and that companies should be valued according to their ability to achieve results that fit such a curve. In Smart Growth, Professor Hess names this myth and makes the reader conscious of not only its pervasiveness but also its tragic impact on businesses, communities, individuals, and society. Then Professor Hess delivers compelling research--his own and others--that kills the growth myth. Just obliterates it. Now, if CEOs want to run their businesses according to that myth, they had better hope that nobody in and around their companies reads this book...

...Or maybe they should hope that many do read Smart Growth. That way there will be people around them equipped with a mindset--and research-based frameworks and examples--that can re-orient their companies before the "grow or die" mentality cripples or kills them.

Smart Growth provides hope and handles for smart leaders who want to build better companies and a better world. It deserves a wide reading as a significant and original contribution to that cause. I have already started giving it to our firm's clients. The reaction from a business leader just today: "This just makes sense. This is how I think and how I want to run the business." May such readers and leaders multiply smartly.
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