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This work is a product of nearly 40 years of action research and consultation with many different organizations. These range from new ventures to members of the Fortune 500. They were our research “laboratory.” Simply stated, the most significant ideas that underlie this book were the products of observing, analyzing, and conceptualizing what actually happened in successful and unsuccessful organizations as they grew. The book could not have been written without having had access to those companies of various sizes, in different industries, with different degrees of success. Accordingly, we are greatly indebted to the CEOs, presidents, senior managers, and others who invited us to serve as researchers, consultants, or advisers for their organizations. (Many of these companies are not mentioned by name, to preserve their privacy. In some cases, fictitious names are used; in others, examples are cited without the company being named at all.)

The data presented in Chapters 2, 5, and 11 are drawn from the organizational effectiveness database compiled by Management Systems Consulting Corporation. They are derived from a survey developed by Eric Flamholtz. Omar Aguilera, Senior Consultant with our firm, Management Systems, assisted in the preparation and interpretation of some of the data (updated from the fourth edition) dealing with organizational growing pains and strategic organizational development.

We want to also acknowledge the help that Clara Penny, Management Systems' Vice President of Finance and Administration, provided in preparing the manuscript of this fifth edition. And, we would like to thank the other members of the Management Systems team – Leslie McKenna and Michael Tan – for their support.

Although we acknowledge with gratitude the contributions of all those cited, we remain responsible for the book and its imperfections.

Eric G. Flamholtz

Yvonne Randle

Los Angeles

April 2015