Organizational Life Cycles

ORGANIZATIONAL LIFE CYCLES
Organizations go through predictable patterns of growth and development. As an organization

grows, its personality (culture) changes. Its focus, priorities, problems, concerns and complexity
also change. It has been said that this life cycle is but a series of phases of evolutionary growth
followed by crisis which necessitates revolutionary growth of the organization and/or its people,
followed by another period of evolutionary growth, etc., etc. On a somewhat comforting note,
these periods of growth, the crises and the revolutionary changes they require are predictable.
1. Courtship
All organizations begin as someone’s vision. In this phase of development, the organization is
an idea. Generally a need or opportunity has been identified but no commitment has been made.
Initial discussions about the idea filled are with enthusiasm and expectations. Often there is an
entrepreneurial spirit associated with the idea. The focus is on the future and expectations are
often overly optimistic. There is an unspoken but nagging concern about “what if it doesn’t
work?”
The Organizational Life Cycle Model
Expectations are high. Convincing “talk” is abundant. In reality, the champions of the new
organization are trying to convince themselves, and others, that the core idea has merit. Courage
and commitment are important at this stage.
2. Infancy
At some point, the risk is taken. The Organization is born. The idea has become a reality and
now requires time, commitment and resources. Each day brings new challenges. The Infant
business needs to be fed. The emphasis is on making things happen, producing results and
selling. There is little planning and few systems. Energy is high, consistency is low. Firefighting
is a way of life.The Entrepreneur/Founder is the driving force in the organization. This is a one
person show. It takes dedication, energy and hard work to keep a new organization alive and
productive.
3. Go-Go
To survive infancy, the organization learns how to produce results. Its success is encouraging
and it will begin to expand on its vision. With the renewed vision come more opportunities. A
new product here, a market there. soon there is opportunity around every corner. The Go-Go
organization is optimistic. It is confident in its ability and often takes on more than it can
“chew.” It develops pride in its growth, people, size and sphere of influence. Big is considered
better and expansion creates crises. Everything is viewed as an opportunity, and every
opportunity is a threat. People and mangers get spread too thin. Standards become lax and
excellence in performance may be compromised. In this phase, the organization remains
dominated by its leader. During the Go-Go period, nothing seems out of reach.
4. Adolescent
The expansion of Go-Go brings vulnerability and risk. Mistakes are made, too much is
promised, too many projects are started. And, the organization could be in danger. As the
organization tries to get under control, the organization moves into the Adolescent phase. The
rapid expansion of the Go-Go is followed by a period of rethinking, consolidation and
reorganization. This olescent organization, like the young teenager, is often characterized by
some degree of conflict and confusion. In organizations the conflict occurs between people,
departments, and cliques. teamwork suffers. Leaders may not be in agreement on direction or
risks that should be taken. The entrepreneurs are often at odds with their more conservative
colleagues. Rapid expansion often leads to a loss of focus, confusion about what type of
organization we are, what market do we serve, and how should we be organized?
The challenges of the Adolescent organization are difficult. It is easy to lose energy and
prematurely age by moving directly past Prime and into decline. This is particularly true
if a strong sense of mission does not exist or if people have not learned how to disagree
productively or made decisions together.
This is generally a tough time for the leader and the organization. But, if these issues and
challenges are met... the newly directed organization can emerge into its Prime phase.
5. Prime
This phase is characterized by strategically-directed management that achieves total quality

in terms of service to customers, satisfaction of its employees and the ability to achieve desired
results. The Prime organization has a clearly defined mission and strategy. It is continuously
improving its processes and its bottom line. The organization is generally predictable. It sets and
meets aggressive goals. Challenges are faced and resolved efficiently and effectively. Reward
and recognition systems are aligned with company strategies.
Finding and developing enough capable and competent people becomes a problem for Prime
organizations. The organization and its mission are both focused and expanding. The culture is
one of open communication, honesty and strong performance. The exhilaration experienced
within a Prime organization is great. There is a great sense of purpose and achievement. The
inherent danger in Prime is one of fighting complacency.
6. Stable
When an organization ceases to stretch for excellence, it will begin to age. Complacency
sets into the organization and its leaders slow down, settle in and become “comfortable.”
The aspirations for growth and improvement begin to fade. The Stable phase is the first
stage in the aging process and it is difficult to notice. The changes are ever so slight and
generally take place over a considerable period of time.
The Stable phase is a phase of transition from growing to aging. The organization may
still have some characteristics of Prime, but the aging symptoms begin to appear. The
organization is still profitable, and may appear to be a flashy industry leader. It has often
had a long reign at the top of the heap. However, the team no longer pushes itself.
Honest, open criticism is less tolerated. Politics become more of an issue. There is more
focus on how we do things than what we do. More emphasis on activities than results.
The organization is changing. It no longer goes after what it wants; it takes what it canget.
Momentum declines; the organization appears “flat.” While transition into the Stable phase is
subtle, its impact is profound.
7. Aristocracy
As the drive to produce results declines and the organization becomes more concerned
with form and function, it loses energy. The conflict which keeps a young organization
sharp is replaced by an easy-going tolerance, including a tolerance for poor performance,
and there is an attitude of “don’t make waves.” The aristocratic organization may still
have cash; its balance sheet and operating statement still looks good and the bankers are
their friends. Usually the organization has the tools it needs at this point in time. It has
the location and systems; equipment is plentiful, and training courses can be found
everywhere. However, the most common behavior is denial. This includes denial of
problems, denial that customers aren’t as satisfied. Fewer are coming back each year. The
drive for profit now focuses on creating a monopoly, reducing costs or raising prices.
This stage brings the organization to the beginning of a decline.
8. Early Bureaucracy
If the organization does not recognize the symptoms of the Stable or Aristocracy phases
and makes no major effort to re-energize itself, it will continue to decline. As results
decline complete denial is no longer possible. People begin talking openly about “the
problems” and try to identify the person who precipitated the decline. Scapegoats are
found, the culprit is removed and the team rejoices. However, the problems are systemic.
The removal of a couple of people is not the answer. It doesn’t work and the witch-hunt
begins again.
As people turn inward and point fingers, they turn their backs on customers. Service
levels fall. Customers complain. After this point, the organization generally self destructs
unless there is an immediate effort to turn the organization around.
9. Bureaucracy
If the declining organization is big and vital to the nation’s economy, the government
takes it over, driving it into full-fledged Bureaucracy. When this happens, focusing on
form rather than function is taken to the level of an art form. Paper work abounds and the
customers are left crying in the wilderness.

Organizational Life Cycles

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Organizational Life Cycles

Uploaded by

Copyright:

Available Formats

ORGANIZATIONAL LIFE CYCLES

Organizations go through predictable patterns of growth and development. As an organization

This phase is characterized by strategically-directed management that achieves total quality

You might also like