My Firm versus Our Firm: The Challenge of Change in Growing the Small Professional Service Firm

Abstract

significant research exists about cultural organizational change, the nuances of such cultural
change in small, growing organizations have not been as extensively researched. This paper
seeks to understand how transitions experienced in the small business life cycle represent cultural
organizational change, and whether such transitions can be more effectively managed when
viewed as organizational change. Small businesses represent a significant portion of the U.S.
and global economy. This paper focuses on small professional service firms. The case of an
accounting firm moving to the mature stage in the small firm organizational life cycle is
presented. Case methodology provides a means to better understand the transition from one life
cycle stage to another as cultural organizational change, and explores how this change is
different for owners/leaders of a small growing firm than for executives in large firms or
organizations. The discussion focuses on how small firms can manage such transitions and offers
insights for the owners/leaders of such firms.