This document discusses Larry Greiner's model of organizational growth which identifies 5 phases of evolution that organizations progress through as they grow in size and age. Each phase is characterized by a different management style and is followed by a period of revolution or crisis as the previous management style is no longer effective. The 5 phases are creativity, direction, delegation, coordination, and collaboration. The document provides an example of how Costco grew through the collaboration phase and suggests applying Greiner's model to analyze where one's own organization currently sits in the phases and what management changes may be needed to address the next potential crisis.

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.