In summary, growing a business is a dynamic process as the leadership team navigates the evolutions and revolutions of growth. And like the growth stages of a child, they are predictable and unavoidable. To deal with these challenges, the company must grow the capabilities of the leadership team throughout the organization; install scalable infrastructure to manage the increasing complexities that come with growth; and stay on top of the

market dynamics that affect the business.

To do this, there are 4 Decisions that leaders must address: People, Strategy,

Execution, and Cash.

For Penrose, the firm was defined not by the assets it owned or the contracts it made but by its capabilities and its ability to deploy those capabilities in productive services: ‘All the evidence we have indicates that the growth of firms is connected with the attempts of a particular group of people to do something.’ Perhaps that seems obvious. But her emphasis

on ‘the group’ recognises the centrally cooperative nature of business activity, and her identification of purpose – ‘to do something’ – establishes its problem-related focus.

Chapter Six: Getting Bigger

“Generally speaking, a company can grow in two ways. The first is to do more of what you're already doing (or closely related to it). The second is to do different things.' In the language of this book, doing more of what you're already doing is growing the existing service model. Doing different things means building new service models.

Here's a common pattern: You're new. You're scrappy. You'll do whatever it takes to meet the needs of your clients, which means growth by any means necessary. If a customer wants to give your standard offering a slightly different spin, sure, you'll give it a try. Your effort is also known as customizing your product or service. At this point, there's such a premium on developing customer relationships that you're not thinking about how to pull this off in a profitable way. Instead, you're thinking about survival. If you can keep a growing number of customers happy, then good things are more likely to happen.

Here's a common pattern: You're new. You're scrappy. You'll do whatever it takes to meet the needs of your clients, which means growth by any means necessary. If a customer wants to give your standard offering a slightly different spin, sure, you'll give it a try. Your effort is also known as customizing your product or service. At this point, there's such a premium on developing customer relationships that you're not thinking about how to pull this off in a profitable way. Instead, you're thinking about survival. If you can keep a growing number of customers happy, then good things are more likely to happen.