Navigating growing pains: When internal capacity is no longer sufficient
Many fast-growing companies reach a critical turning point where their existing structure, culture, and leadership are no longer sufficient. This stage, often referred to as “growing pains,” is more than just a metaphor—it is a scientifically defined organizational phenomenon. It signals that the company has outgrown its existing structure, which, according to research on management, means that the current organization lacks the right skills for the next phase of growth.
By: Interim Search, in conversation with Jonas Fasth, researcher and expert in management and growth.
The critical symptom: Letting go of control
The clearest sign that a company is experiencing growing pains is that existing expertise is lacking in critical processes. However, the most common reason for stagnant growth is rarely a technical deficiency, but rather a mental one. Leadership is not keeping pace.
Jonas Fasth, researcher at the University of Gothenburg and author of the thesis ”Business leaders” work and growth”, identifies the most critical obstacle here:
”The most common reason for stagnation is that leadership is not keeping up, because managers want to maintain control. To grow, you need to let go of control and trust your employees.”
He believes that many managers do not genuinely want to scale up; they prefer the comfort of what is safe. Scaling up requires a fundamental shift from knowing to learning, where control is delegated and employees are given greater initiative and personal responsibility.
The breaking point: When internal capacity runs out
For a CEO experiencing stagnant growth, the crucial question is: How do you know when the limit has been reached and external expertise must be involved?
According to Fasth's research, the tipping point occurs when a company's ability to recruit and retain the right talent no longer matches its growth needs. The research highlights an important insight: a vague idea with the right people is more successful than a good plan with the wrong people. In an era of rapid technological development (such as the emergence of AI), the focus is shifting from having the answers to asking the right questions.
“Failure to act on growing pains can have serious consequences.” Jonas emphasizes:
“This can lead to reduced learning and a stagnant organization. Growth then plateaus and staff become dissatisfied. The quick-moving individuals tend to leave first, which reduces the organization's ability to recover.”
Interim Management: An evidence-based solution
Research shows that companies that utilize external expertise perform better and are quicker to implement measures in a crisis. This external orientation is a clear hallmark of successful growth companies, which utilize external expertise to a greater extent than their peers. Quickly bringing in the exact expertise needed is crucial, and here an interim solution appears to be an effective way to quickly access this external expertise, as opposed to longer, traditional recruitment processes.
Jonas Fasth describes what characterizes a successful interim assignment:
”A successful interim manager leaves behind more than just solved problems. They establish a clear framework with visions, missions, goals, and conditions for performance. They challenge employees and create a learning environment that ensures sustainable growth after they leave.”
Jonas' evidence-based advice for the next stage of growth
To a C-level executive facing the next major growth phase, Jonas Fasth two evidence-based recommendations:
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Prioritize the right people.
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Dare to talk about what you should not do in the future. “This is a factor that is often overlooked in change management. By stopping certain activities, time and money are freed up that can be invested in new growth initiatives.”
This article is based on research and insights from Jonas Fasth, who is also a key figure in Interim Management Professional Program – Sweden's only academic program for interim managers, developed by Interim Search in collaboration with the School of Business, Economics and Law at the University of Gothenburg.
Jonas Fasth is responsible for, among other things, the training days on change management. Read the entire post about Jonas Fasth's involvement in last year's program here.
