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Growth Phases model
(Greiner)

Adjusting the strategy and structure of organizations while they develop. Explanation of Growth Phases of Greiner. ('72)

Growth Phases Model | Greiner CurveWhat is the Growth Phases model? Description

The growth phases model of Larry E. Greiner suggests that organizations go through 5 (6) stages of growth and need appropriate strategies and structures to cope.  It is a descriptive framework that can be used to understand why certain management styles, organizational structures and coordination mechanisms work, and why some don't work at certain phases in the development of an organization. The 1972 Growth Phases model of Greiner describes five phases of organizational development and growth:

  1. Growth through creativity. Start-up company, entrepreneurial, informal communication, hard work and low earnings. Ending by a leadership crisis.
  2. Growth through direction. Sustained growth, functional organization structure, accounting, capital management, incentives, budgets, standardized processes. Ending by an autonomy crisis.
  3. Growth through delegation. Decentralized organizational structure, operational and market level responsibility, profit centers, financial incentives, decision making is based on periodic reviews, top management acts by exception, formal communication. Ending by a control crisis. Compare: Centralization and Decentralization.
  4. Growth through coordination and monitoring. Formation of product groups, thorough review of formal planning, centralization of support functions, corporate staff oversees coordination, corporate capital expenditures, accountability for ROI at product group level, motivation through lower-level profit sharing. Ending by a red tape crisis.
  5. Growth through collaboration. New evolutionary path, team action for problem solving, cross-functional task teams, decentralized support staff, matrix organization, simplified control mechanisms, team behavior education programs, advanced information systems, team incentives. Ending by an internal growth crisis.

More recently Greiner added a sixth phase to his Growth Phases model:

  1. Growth through extra-organizational solutions (mergers, holdings, networks of organizations)

Book: Larry E. Greiner - Power and Organization Development -

 

Growth Phases Forum

Recent User Comments
Emmanuel - Tanzania Growth of Communities "Does this apply to community organizations as well, or are these growth phases only specified for business organizations?"    15
Cris - Romania Greiner after phase 6 "I wonder what's beyond phase 6? Should't the entire Greiner Curve go further with "ex-organizations" split up (divide, sell) or just reinvent the organization? Maybe it's a circle (with a dotted line unifying the ends) and not just a linear growth?"    -3
George - Canada Is a crisis a must for growth? "It is typical for Greiner's thinking that the growth phases are seperated from each other by organizational crises. Without a crisis a firm can not enter the next stage. Personally, I doubt if this is always the case?"    5
Eddie - UK Greiner "What Leadership style is needed for the newly added 6th phase?"    5
Pete - France Greiner "What's the main difference with Mintzbergs model?"    -6

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Compare with: Organization Chart  |  Mergers & Acquisitions  |  Competitive Advantage  |  Core Competence  |  Parenting Styles  |  Relative Value of Growth  |  BCG Matrix  |  Distinctive Capabilities  |  Organizational Configurations  |  Leveraged Buy-out

 

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  § DC (USA) After Greiner phase 6 "I agree its a perpetual cycle where you can no longer get true organic growth without an injection of entrepreneurship, innovation and creativity - which takes you back to phase one and you do it all over again. You then have a staircase of inflection points that represent the end (or beginning) of a cycle."

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  § Aditi (India) Crisis and Growth "Not necessarily..."
  § Annetol Griskov (Holland) Crisis "It should not be a crisis. But it will become a crisis if you do not pay attention to the growth 'problem'. If you are not aware of the situation and act on it, it will become a problem."

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  § art holloway (united states) mintzbergs model "it works if everyone is on board with the program at work"

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