2. Stable Prime Aristocracy Adolescence Early Bureaucracy Go-Go Bureaucracy Corporate LifeCycle Infant Death Courtship
3. Growing vs. Aging Growing Aging Personal success stems from taking risk Expectations exceed results Function over Form People are kept for contributions to organization in spite of their personality Personal success stems from avoiding risk Results exceed expectations Form over function People are kept for their personalities in spite of their contribution
4. Growing vs. Aging Growing Aging Everything is permitted unless expressly forbidden Problems are opportunities Political power is with sales and marketing Responsibility is not matched with authority Everything is forbidden unless expressly permitted Opportunities are problems Political power is with accounting, finance, and legal Authority is not matched with responsibility
5. Growing vs. Aging Growing Aging Management controls the organization Management drives momentum Change in leadership can lead to change in the organizations behavior From value added goals (profits) The organization controls management Management is driven by the inertia Change in the system is necessary to cause a change in the organizations behavior To political gamesmanship
6. PAEI P – Perform…Sales, Service, get results now A – Administer… be efficient, routine, order, enforcement E – Entrepreneur…Proactive, identify needs which you can serve I – Integrating…Develop culture, create environment where solutions can be found by employees themselves
7. Growing Stage – Infancy (Paei) Focus shifts from ideas and possibilities to results expressed in terms of sales. Time to talk and think is over and the time to produce and act is now Cash is necessary to survive so generating it fast is number 1 focus Founder must stay committed for company to survive
8. Growing stage – Go-Go (PaEi) The idea is working, sales are up, cash flow problems have been overcome Company can experience uncontrollable growth, lack of systems, lack of budgets, lack of policies, lack of structure, founder(s) can become arrogant and continue to do what got them there, will and persistence Methods no longer work and crisis occurs leading to the next phase of the cycle
9. Second Birth/Coming of Age – Adolescence (pAEi) The shift from management by intuition to a more professional orientation occurs it’s the shift from entrepreneurship to professional management New leader creates systems, designs compensation packages, redefines roles and responsibilities, and institutionalizes a set of rules and policies New leader says no nono when people are used to go gogo
10. Second Birth / Coming of Age – Prime (PAEi) Organization achieves balance of self control and flexibility – they know what they’re doing, where they’re going, and how to get there
11. Aging Organization – Stable (PAeI) Still growing but losing flexibility, sticks to what worked in past, sense of urgency disappears, expectations for growth and new markets are lowered This organization starts to reward those who do what they are told to do and they are more interested in interpersonal relationships than risk
12. Aging Organization – Aristocracy (pAeI) Organization places an emphasis on how things are done rather than what and why it is done Individuals are still concerned about the company’s vitality, but as a group, the operating motto is don’t make waves There is low internal innovation….corporation often buys other companies to acquire new products and markets
13. Aging Organization – Early bureaucracy (pA-i) Emphasis on who cause the problems rather than what to do about it There is much conflict, backstabbing and infighting, paranoia freezes the organization; everyone is lying low, focus is on internal turf wars The external customer is a nuisance
14. Aging organization - Bureaucracy and death (-A--) Has many systems with little functional orientation Disassociates from its environment, and focuses mostly on itself To work effectively with the organization, customers must develop elaborate approaches to bypass or break through the system
