1. Evolution and RevolutionEvolution and Revolution
as Organizations Growas Organizations Grow
Larry E. Greiner
Chris Bahr, Keith Bolden, Christina
Greer, Matt Rice, & Kelly Shepherd

2. Main ConceptsMain Concepts
 Future development is determined by five key forces:
 Age
 Size
 Evolution
 Revolution
 Industry Growth
 There are five distinct phases of growth:
 Creativity
 Direction
 Delegation
 Coordination
 Collaboration
 Know what phase management is in, solutions are not
permanent, and each solution breeds new problems.

4. Costco ExampleCostco Example
 Growth through Collaboration
Crisis of ???
 Annual “Employee Rulebook” changes

5. ApplicationsApplications
 Where does your organization lie within the five phases?
 Figure out the next step management should take to keep
growing/developing.
Examples:
 If crisis is autonomy, increase delegation.
 If experiencing growth through coordination, prepare for a
crisis of red tape.
 Remember that each solution breeds a new crisis, and be
prepared for it.

6. Tip for Group ProjectsTip for Group Projects
 When recommending change in an
organization; view it through the context
of the five phases.
 This allows you to use foresight and
offer warning of a potential crisis in the
future.

7. Test Question #1Test Question #1
According to Greiner’s “Five Phases of Growth”
each stage of evolution is followed by…
A. A new species.
B. Increased profits.
C. A stage of revolution.
D. A new product line.
E. None of the above.

8. AnswerAnswer
 The correct answer is C.The correct answer is C.

9. Test Question #2Test Question #2
 If a company has a crisis of autonomy andIf a company has a crisis of autonomy and
handles it through delegation, theirhandles it through delegation, their
problems are solved completely. True orproblems are solved completely. True or
False?False?

10. AnswerAnswer
 False! Each new solution breeds a futureFalse! Each new solution breeds a future
crisis.crisis.