The evolution & revolution of growing organisations

In July 1972 HBR published an article written by Larry E. Greiner entitled Evolution and Revolution as Organisations Grow. It laid out the pattern for modern understanding of the economic fortunes of organisations relative to their size, maturity, structure and strategies.

Businesses are called organisations due to their nature and more importantly because they require decisions to perform. This direction always impacts performance and as a result has a profound affect on the people within it. With reference to the first of the 6 phases of business growth Greiner sets his stall out with the pattern his model follows, he says:

“Creative activities are essential for a company to get off the ground. But as the company grows, those very activities become the problem.”

This making it and then breaking it method is a natural pattern for growth and applies perfectly to organisations as they scale. He describes each transition between phases as  a “crisis” that the business needs to resolve before fully moving onwards and upwards.

Greiner’s Growth Model

The phases of growth

Crisis of Leadership occurring during Creativity

Crisis of Autonomy occurring during Direction

Crisis of Control occurring during Delegation

Crisis of Red Tape occurring during Coordination

Crisis of Growth occurring during Collaboration & Alliances

So what?

Leverworks are experienced in helping businesses identify the phase they are in, developing action plans to address the crises and free up founders, managers and employees to grow.

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