As a young professor studying organizational development, Eric initially struggled to determine what drove success and failue in companies. Working with his partner Yvonne Randle, they have spent over 30 years researching organizational success and failure. Their work has shown that predictable challenges they call “Growing Pains” inevitably emerge as a business develops. Growing Pains are problems that occur as a result of inadequate organizational development in relation to business size and complexity.

Their work is widely recognized as the definitive or “classic” approach to building sustainably successful companies, and is supported by their highly regarded book, Growing Pains. Growing Pains are problems that usually arise from success, not failure. However, they can also occur during a period of business plateau or even decline as a result of residual underdevelopment from a prior period of growth. They are early warnings that organizational development has not kept pace with business development (measured in revenues). These symptoms have proven to be a set of leading indicators of future financial performance, and are predictive of future difficulties if not addressed.

The work of Flamholtz and Randle led to the creation of The Pyramid of Organizational Development™.


The Pyramid offers a strategic “lens” to help Owner-Managers:

  • Develop their companies successfully and sustainably.

  • Avoid the pitfalls that lead to underperformance or even failure.

  • Successfully develop higher levels of competitive advantage in order to become increasingly durable.

The Pyramid identifies six key “building blocks” required to become organizationally effective. They are what every company must develop in order to be successful over the long term (from bottom to top):

  • 1.Identification, definition, and understanding of a viable MARKET (customers) to serve.

  • 2.Development of appropriate PRODUCTS AND/OR SERVICES to meet the market (customers) needs.

  • 3.Acquisition and management of RESOURCES required to support current and future operations.

  • 4.Development of the OPERATIONAL SYSTEMS necessary for the organization to function on a day-to-day basis.

  • 5.Development of the MANAGEMENT SYSTEMS required for the overall functioning of the organization on a long-term basis.

  • 6.Development and effective management of a strong and positive CORPORATE CULTURE.


1776 Park Ave. #4-175

Park City, Utah 84060

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