Understanding where your business is and where it could go. Lifecycle of a business is a tool that helps businesses identify issues and growth hurdles.

2. Iden%fying
the
predominant
characteris%cs
of
your
business
and
its
lifecycle
stage
will
help
you
understand
where
you
are
in
the
organiza%on's
maturity
scale,
point
out
the
symptoms
and
risks
and
ul%mately
lead
you
to
having
a
healthy
mature
business.
What
business
are
we
in
and
who
are
we
aiming
to
please?

3. A
company
is
like
a
human
body
which
ages
from
infancy
to
death
and
will
get
certain
sicknesses
and
symptoms
at
different
“stages”
of
life.
Some
symptoms
are
OK
for
their
age
and
some
are
not
e.g.
Its
ok
to
get
acne
as
a
teenager
but
not
when
you
are
in
your
fiHies.
The
important
ques%on
is:
Are
we
dealing
with
the
right
problems
at
the
right
%mes?

4. COURTSHIP
INFANCY
GO-­‐GO
ADOLESCENCE
PRIME

5. STABLE
ARISTOCRACY
EARLY
BUREAUCRACY
BUREAUCRACY
DEATH

6. Organiza%on
is
not
born
yet
Lots
of
excitement
Focused
on
the
future
Leaders
are
overly
op%mis%c
Making
promises
you
may
not
be
able
to
keep
May
appear
irresponsible
in
hindsight

7. Unexpected
symptoms
:
An
affair
The
move
to
Infancy
always
involves
risk.
If
the
risk
is
taken
the
courtship
has
commitment
and
the
dream
will
not
die.
An
organiza%on
or
new
ini%a%ve
can
die
before
its
born
if
there
is
only
willingness
to
think
up
ideas
but
no
thought
for
results,
implementa%on
and
capability
to
get
along.
In
this
case
its
only
an
affair
and
not
a
courtship.
The
birth
of
a
business
happens
when
the
people
are
prepared
to
take
the
risks
involved.
If
the
risks
aren't
taken
the
organiza%on
will
not
move
up
to
infancy

8. ShiH
from
vision
to
ac%on
Nega%ve
cash
flow
–
requires
constant
cash
injec%on
and
working
capital
All
ac%on
–
people
doing
“stuff”
Daily
opera%onal
crises
No
supplier
or
customer
rela%onships
established
Making
excessive
commitments
Schedules
overbooked
and
delivery
dates
being
postponed
Responds
to
complaints
and
needs
Management
by
crisis
Vulnerable
–
every
small
problem
is
a
big
fire
Few
to
no
systems,
policies
and
processes
Employs
unsophis%cated
management

9. The
move
from
the
Infancy
stage
to
the
Go-­‐Go
stage
will
start
occurring
when
cash
flow
and
general
ac%vi%es
become
somewhat
stable
&
clients
bring
in
repeat
business.
This
is
when
“loyalty”
signs
appear.
There
is
a
high
risk
of
infant
mortality
at
this
stage.
Any
mistake
could
lead
to
the
death
of
the
company.

10. Everything
is
a
priority
and
a
crisis
Everything
is
a
deadline
and
everything
is
a
opportunity
No
management
skills
Externally
focused
–
looking
at
what's
happening
outside
the
company
–
not
in)
High
level
of
op%mism
Management
by
intui%on
:
seat
of
the
pants
:
lacking
systems
and
figures
Company
is
arranged
around
the
people
instead
of
the
people
around
the
Company
Reports
are
focused
towards
sales
–
not
profits
Hiring
tomorrow
those
needed
yesterday
:
no
responsibility,
appraisals
and
accountability
OHen
a
one-­‐man
show
Company
gains
market
share
No
Clear
roles
and
role
defini%ons.

11. Founders
trap:
Company
remains
a
one-­‐man
show
and
does
not
develop
an
ins%tu%onalized
vision.
Unwillingness
to
develop
or
work
within
systems
Grows
to
founders
limits
and
poten%al
Organiza%on
will
likely
die
with
founder
or
if
it’s
a
family
business,
within
three
genera%ons.
Company
needs
to
be
“re-­‐born”
again
as
a
new
en%ty,
separate
from
the
founder.
THIS
will
lead
to
Adolescence
stage.

12. Also
known
as
the
second
birth
away
from
founder
Founder
accepts
organiza%onal
sovereignty
(Company
leads
itself)
Professional
leadership
style
and
systems
The
people,
the
structure
and
all
processes
align
with
new
vision
Conflict
arises
between
those
who
want
change
and
those
who
want
to
preserve
the
status
quo
Conflict
between
administra%ve
and
entrepreneurial
styles
“we
–
they”
sydnrome.
Cliquish

13. Risk
of
premature
ageing:
The
internal
conflict
is
not
well
managed
and
leads
to
cri%cal
loss
of
trust
and
respect
which
in
turn
leads
to
lack
of
team
work
The
good
people
leave
Loss
of
buy-­‐in
to
vision,
mission
and
values
The
founder
divorces
the
company
and
tried
to
lead
the
company
in
his
own
way.
This
lack
of
leadership
oHen
ends
in
death
of
the
organiza%on.

14. Company
is
results
driven
Good
systems
and
procedures
There
is
a
plan
and
its
followed
Aggressively
growing
Reports
growth
in
profits
Has
Go-­‐Go
aggressiveness
but
is
predictable
Begins
to
generate
new
lifecycles
within
itself
May
lack
enough
quality
managers
for
the
growth
experienced

15. At
this
point
the
company
needs
to
constantly
re-­‐
invent
itself
in
order
to
con%nue
ageing
towards
death
which
otherwise
is
expected.
The
“trick”
is
to
stay
in
Prime
Stage
although
this
is
not
the
norm.
This
is
the
stage
where
the
company
is
making
the
most
profit
with
the
least
problems
and
is
running
the
most
smoothly.
The
major
risk
is
that
companies
become
less
risk
orientated
,
more
conserva%ve
in
all
aspects
and
lack
crea%vity.

16. Loss
of
vision
Working
on
yesterdays
vision
Less
conflict
–
nothing
worthwhile
figh%ng
about
Complacency
Low
mo%va%on
and
risk
–
“If
it
aint
broken..”
Low
aspira%ons.
Happy
where
it
is.
Few
expecta%ons
to
conquer
the
market
Rewards
those
who
do
what
they
are
told
and
get
along
with
everyone
Focus
on
past
acheivements
Power
shiHs
from
marke%ng
and
research
and
development
to
finance

17. At
this
point
the
organiza%on
is
ageing
in
the
nega%ve
sense
of
the
word.
This
is
the
start
of
the
slide
towards
death.
A
new
vision
is
urgently
required.

18. The
company
is
perceived
as
being
successful
Heavy
cash
reserves
Overly
concerned
with
ROI
(return
on
investment)
Starts
to
func%on
with
“paper-­‐clip
policies”
Enchanted
with
the
past
–
old
school
senior
management
“%e
clubs”
People
are
afraid
to
express
their
concerns
about
the
company
–
“don’t
make
waves”
People
deny
the
reality
–
its
business
as
usual
Low
internal
mo%va%on
The
company
tries
to
buy
other
businesses
to
buy
entrepreneurship
The
company
is
cash
rich
and
is
a
poten%al
take
over
target

19. Aristocracies
do
not
want
to
take
charge
of
their
lives
or
des%na%on.
They
want
the
environment
to
become
favourable
or
wait
for
someone
else
to
do
something
to
avoid
the
impending
decline.

20. Due
to
too
many
ar%ficial
correc%ve
ac%ons
in
the
Aristocracy
stage,
there
is
an
eventual
day
of
reckoning
Severe
loss
of
market
share
Managers
go
on
witch-­‐hunt
:
who’s
fault
was
this?
People
are
fired
Staff
get
paranoid
:
who
is
next
Much
conflict,
back
stabbing
and
infigh%ng
Survival
mode
Internal
focus.
Worried
about
internal
wars
not
figh%ng
the
compe%%on
Customer
sa%sfac%on
levels
in
decline
The
customer
becomes
a
nuisance,
not
the
focus

21. Bureaucracy
develops
when
companies
are
taken
care
of
financially
(subsidized)
orkept
alive
by
having
a
monopoly
on
their
ac%vi%es.
The
health
is
delicate,
roden
to
the
core
and
on
the
brink
of
bankruptcy.
This
happens
when
no
one
is
commided
to
the
company
anymore.
This
oHen
happens
in
Government
departments.
Death
may
take
years.

22. Death
is
simply
when
the
company
falls
apart
in
all
aspects
and
eventually
closes.