There’s a paradox in managing growing pains. Business leaders often assume that growth solves problems. Yet research shows the opposite: growth introduces complexity, strains organizational systems, and often erodes performance. Gallup reports that only 31% of employees were engaged in 2024, the lowest level in over a decade (Gallup, 2025). At the same time, Gartner found employees’ willingness to support organizational change fell from 74% in 2016 to just 38% in 2022, evidence of rising change fatigue (Gartner, 2023).

This trend creates a paradox: leaders push for scale, yet the very act of scaling makes sustained performance more difficult. According to Bain & Company, only 11% of companies manage to achieve sustained profitable growth—defined as revenue and profit compounding at 5.5% or more over a decade (Bain, 2017).

The reality is that growth always brings pain. The strategic challenge is not to avoid these pains, but to manage them systematically.

Why Growing Pains Undermine Scale

Several dynamics explain why growing pains emerge so consistently across industries and sectors:

• Complexity creep: Each new product line, region, or process adds interdependencies that slow decision-making and dilute focus.
• Change fatigue: Employees who have endured repeated initiatives without clear results disengage, reducing adoption of future efforts.
• Execution drag: Leaders often underestimate the organizational discipline required to complete transformation programs. McKinsey’s research shows that transformations that fully complete their initiatives report ~79% success, but most falter before reaching that stage (McKinsey, 2021).
• Leadership bandwidth: As organizations expand, senior leaders spend more time firefighting and less time shaping the systems that enable scale.

These dynamics make growth an endurance test. Without structure, the organization’s operating rhythm deteriorates, and the benefits of scale never materialize.

The P.A.C.E. System: A Framework for Managing Growth

To address these challenges, leaders can apply the P.A.C.E. System—a practical framework designed to reduce complexity, strengthen alignment, and maintain engagement during scale.

P — Prioritize Value and Kill Complexity

Leaders must actively combat complexity creep. A quarterly Stop-Start-Simplify review provides the discipline to retire low-value work. The process is straightforward: sunset 10% of initiatives that no longer create impact, merge duplicative projects, and remove at least one approval layer per quarter.

This practice accelerates decision-making, reduces organizational drag, and ensures resources concentrate on initiatives that matter most.

A — Align Operating Model and Accountability

Scaling organizations require clarity of ownership. For every strategic bet, assign a Directly Responsible Individual (DRI) and define end-to-end performance metrics. Complement this with a one-page RACI (Responsible, Accountable, Consulted, Informed) to clarify decision rights at interfaces.

By tightening alignment, leaders avoid the confusion and duplication that typically derail execution at scale.

C — Co-create Change with the Workforce

Change is more sustainable when employees shape it. Gartner research shows organizations that adopt “open-source change” practices are 14× more likely to succeed and experience significantly lower change fatigue (Gartner, 2022).

In practice, this means engaging 10–15% of employees as change shapers and testers. Leaders can run design sprints, publish draft plans, and recognize contributions publicly. This not only improves adoption but also builds ownership across the organization.

E — Energize Execution through Engagement

Employee engagement is not a soft metric; it is a leading indicator of execution effectiveness. Practical tools include weekly health pulse surveys, short “clarity huddles” led by managers, and tracking the number of minutes leaders spend coaching their teams.

By reinforcing recognition, feedback, and clarity, leaders counter the decline in engagement that so often accompanies rapid scale.

Real-World Example

Consider a mid-sized services organization that doubled its workforce in under two years. Leaders found themselves mired in approvals, employees disengaged from yet another system implementation, and managers consumed with day-to-day firefighting.

Applying the P.A.C.E. framework, the executive team began with a Stop-Start-Simplify review, eliminating twelve redundant initiatives and stripping out two layers of approval. DRIs were assigned to three high-priority projects, and weekly clarity huddles were introduced to connect teams with leadership priorities.

Within 90 days, employee pulse scores rose by 17%, cycle times for customer-facing initiatives fell by 22%, and leadership regained bandwidth to focus on strategic priorities. The organization emerged not only more resilient, but more confident in its ability to scale further.

Why Managing Growing Pains Matters

The lesson is clear: growth without discipline produces fragility. Leaders who fail to address complexity, alignment, participation, and engagement will eventually face stalled momentum and eroded profitability.

By contrast, organizations that adopt structured frameworks like P.A.C.E. turn growing pains into competitive advantage. They learn faster, execute with greater consistency, and maintain the energy required to scale sustainably.

Real Strategies. Real Results.

My closing thoughts… Managing growing pains is not about eliminating discomfort; it is about channeling it productively. The most successful organizations recognize that scale is an operating system challenge, not just a market opportunity.

Leaders who prioritize value, clarify accountability, co-create change, and energize execution build organizations capable of enduring growth. That is how growth becomes sustainable!

Sam Palazzolo, Principal Officer @ The Javelin Institute

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