Scribd
Upload
14 views22 pages

Life Cycle Models

Uploaded by

Ambraphael Vadil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
14 views22 pages

Life Cycle Models

Uploaded by

Ambraphael Vadil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

Organizational

Life Cycle
Models
Lippitt and Schmidt (1967)
CRITICAL CONCERNS: creating the new organization
BIRTH and surviving as a viable system. The key issues are
deciding what to risk and what to sacrifice.

CRITICAL CONCERNS: gaining stability, reputation,


YOUTH and pride; how to organize and evaluate itself.

achieving uniqueness and adaptability: a.) decide


how to change itself to sustain its competitive
MATURITY
position. b.) choose how to contribute to society by
selecting what to share.
Greiner Growth (1972)
Greiner Growth (1972)
PHASE 1: CREATIVITY
 CREATES product and a market
 leadership is ENTREPRENEURIAL and VISIONARY (reacting to
the market)
 lack of structure and management creates a leadership crisis

PHASE 2: DIRECTION
savvy enough entrepreneurs: engaging in business management (skilled), a
structure begins to form, with systems, work standards, & a hierarchical
reporting structure
Greiner Growth (1972)
PHASE 3: DELEGATION

 Decision-making is too centralized to be effective, crisis autonomy


occurs.
 Organizations try to adapt with delegation, but if the organization
isn’t ready, talent will leave.
 Successful delegation allows companies to expand but often
results in autonomous managers with a parochial attitude, creating
a “silo” effect resulting in a crisis of control.
Greiner Growth (1972)
PHASE 4: COORDINATION

 formal systems for planning, control, and resource management


 divide grows between headquarters and field managers; “red-tape
crisis” - organization becomes too large and complex to operate
under formal and rigid systems
Greiner Growth (1972)
PHASE 5: COLLABORATION
 Survival on the fourth revolution: red-tape is supplanted by
COLLABORATION, SOCIAL CONTROL, & SELF-DISCIPLINE.
 Greiner correctly predicted that Phase 5 would create a crisis in
the psychological saturation of emotionally and physically
exhausted employees breaking under the burden of excessive
teamwork and pressure to innovate.
 Nowadays, companies now focus on employee wellbeing, rest,
and revitalization.
Adizes(1979)

changes in life cycle occur because of these four activities:

 PRODUCING RESULTS
 ACTING ENTRPRENEURIALLY
 ADMINISTERING FORMAL RULES & PROCEDURES, &
 INTEGRATING INDIVIDUALS INTO THE ORGANIZATION
Adizes(1979)
Adizes(1979)
courtship adolescent
development of idea, raising defines itself & establish its place
capital, forming business

infant prime
start of ”doing business” organization is fit, healthy, &
PROFITABLE

go-go the fall


things get frantic / chaotic; the end of prime; business starts to
may experience Founder/Family Trap lose keen edge
Adizes(1979)
aristocratic
remains strong of its successes &
presence but loses market share

recrimination death
Company loses its purpose due to:
sells off, bankrupt, sells assets
doubt, problems, internal issues

bureaucracy
internally focued on process &
procedure; seeks exit / divestment
Miller and Friesen (1967)
Less than 10 years old FIRM is dominated by the owner-
BIRTH
manager.

Sales are growing by over 15%. The company has a


GROWTH
functional structure & some formal policies.

Sales growth slows, and the company becomes more


MATURITY
bureaucratic.
Miller and Friesen (1984)

Sales growth returns, and the company diversifies its


REVIVAL
product lines; has divisional structure & sophisticated
systems.

Profitability declines as sales levels off and innovation


DECLINE
stalls.
Miller and Friesen (1984)
conclusion
Applying OLC in daily organizational practices.

The various stages differ significantly in their characteristics; in their


organizational logics and culture. Concurrently, the effectiveness of
certain leadership and management interventions will differ among
the stages. Therefore, it is important to be aware of which stage(s)
dominate your organization and make then the right choices for your
management and leadership interventions. It may help to keep in
mind the following rules of thumb:
1.
There is no one ’best stage’: the best stage is the one that supports
the core business best. For example, when the core business is
’business development’ in a highly competitive market, stage I will
suit best; if it is all about reliability (like a hospital operating theater,
nuclear power station, cockpit airplane) stage III will suit best. This
implies that larger organizations with different departments will likely
require different stages within one organization. This requires
leadership that can apply different leadership styles and organize and
explain diversity.
2.
A given intervention from management may be effective in one
stage but highly ineffective in other stages. For example,
management interventions focusing on ’getting more control’ may be
very effective in bringing an organization from stage I to stage II but
applied in a stage II or III will bring an organization, often
unintentionally, accelerated to the next stage: in stage III or even in
stage IV. Or promoting a more innovative mentality or more
entrepreneurship in a stage III will likely result in a Handbook for
Innovation or Entrepreneurship without becoming a more innovative
or entrepreneurial organization.
3.
The success of mergers or networks highly depends on
the appreciation of the organizations for the various
stages involved. It is crucial that top leadership
understands the underlying dynamics of sometimes
conflicting stages and not only develops a new strategy
and structure but also pays a lot of attention to the
required culture supporting the new strategy.
4.

The underlying dynamics always play a role. If you


recognize this, you can go to a different stage with the
correct chosen change strategy. A change strategy that is
characterized by the culture of the stage aimed for.

You might also like