This project called “The way to balanced growth” is the final thesis in Master of Science and Technology, Management in the Building Industry at Aalborg University. The project describes and evaluates the growth of medium-sized construction companies.

In Denmark medium-sized contracting companies has a big growth potential. This project examines how the medium-sized contracting companies achieve Balanced growth in order to compete for bigger constructing projects. “Balanced growth” is a term which we introduce in this project. The expression means that companies are advised to focus on more than just economy.

Based on an initial literature survey two research projects were found to cover the issues on growth. These two projects are the American research project What Really Works and the Danish research project Fokus på Lønsom vækst i praksis. They point out that growth concerns occur when companies’ revenue increase, but their profits do not. Additional issues occur if the companies’ economic growth is too strong so they lose management and control on the company. These issues are problematic to the companies, since it can lead to loss of money and in worst case it can lead to bankruptcy. Therefore the thesis has provided ten focus areas on how companies achieve Balanced growth. These focus areas include both internal and external activities.

For medium-sized contracting companies to achieve a balanced growth extensive studies of the companies are required. These studies examine issues based on ten focus areas, as well as the companies’ economic accomplishments. These studies have been conducted on the basis of hypothesizes, which the group has made from the ten focus areas. The hypothesis are either confirmed or denied based on the group’s questionnaire survey.

Based on the empirical data and the theoretical foundation the project formulate its question as:

Which initiatives should the medium-sized contracting companies institute to secure Balanced growth?

In the suggested solution the focus areas are divided in primary and secondary focus areas. The reason for this is to show which focus areas have the biggest potential to create a balanced growth in the companies. The suggested solution works as a guidance to achieve balanced growth, where the medium-sized contracting companies have to consider which of the secondary focus areas have the biggest potential in relation to their own company. On the basis on this research study, the companies are suggested to work with four primary focuses areas: strategy, leadership, organizational structure and company culture. The secondary focus areas are: labor force, execution, risk management, economic conditions, customer relations, as well as merger and partnerships.

To ensure that the medium-sized contracting companies follow these recommendations, there are to each of the focus areas, presented specific guidelines, which should be considered to ensure a balanced growth in the medium-sized contracting company.