CLARIFYING DECISION zyxwvutsrq MAKING IN HIGH-GROWTH VENTURES: THE USE OF RESPONSIBILITY CHARTING zyxwvutsrq THOMAS N. GILMORE Wharton Center for Applied Research ROBERT K. KAZANJIAN Emory UniversiQ Many neM’ \benture.sfuil as a result oftheir inahilin to navigate .succe.ssfLd!\ EXECUTIVE through the developmenttrl challenges posed bx rapid gro\lxth. These is5ue.s SUMMARY are particular& salient for founder-0bvner.s \vho often have dij$culty, in authorizing a more formal struc’ture than the,filce-to-face. personal mode of operating that led to the organization’s initial .succe.s.se.s. This article focuses on the der~elopmental transition qf decision- making processes when pre\iou.s strengths. such as infbrmalit!, ma! become weaknesses. As the taenture becomes more complex, problems are more divergent and less able to be resolved by a single indiL,idual or team, The sheer rate qf grocclth can stress the capabilities of the e.Csting structure. The key dilemma for an organization is ho,%, to get the necessar? claric and accountabilic u?thout the rigidi and loss qf creativity and motivation that often attends a restructuring. The authors argue that the process and structure of responsibility charting can be a usqfLr1 tool both to diagnose and to intervene during critical transitions. Through tlvo case e.uamples, the authors assert that the process and results qf responsibilic charting allow groups to set the rules bvithin rz3hic.h they and others will reach the substantivtp decisions. One of the most powecfu:ful aspects of the process is that it allows a group to discuss the dtficult issues oj’power and authority. Responsibilic charting ties discussions about participation and iqjluence to task-related reason.s und assures that discussions about who should be involved hinge on the value that their participation bvould add to the decision, Some caveuts to using the process are presented. such as the risk of’ zyxwvutsrqponmlkjihgfedc su$ac ing latent cor$icts before the entrepreneur wants to deal with them or encouraging subordinates to push for delegations that the founder may not be ready to confer. The authors illustrate how responsibility charting can greatly help an organization negotiate the di$‘icult structuring clzoices during a critical growath State. As a team-building experience, it clears the air among the original core group and concrete!\. diagnoses dlfjculties the1 may be experiencing. Address correspondence to Robert K. Kazanjian, Emory University, 1602 Mizell, The Rich Building. Atlanta. GA 30322. We thank Tamard Hennings for her assistance in analyzing the data for Case A. Journal of zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Bua ine s\ Ve nturing 4, 69-83 G 1989 Elcevw Sc ie nc e Pub lishing Co.. Inc .. 655 Avenue o f the A m e ric a \ . Ne w York. NY IO010 0X83-YO?6:XY!%3.50 69