Growth Phases model

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


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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
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  Internal and External Challenges After Having Established a Start Up Business…
It is a great feeling to be a small business owner...
  Collaboration Elaborated?
Can anyone give more information or guide me to bo...
  Growth Through Training and Development
I think growth through training and development co...
  Examples of Companies in Revolutionary Periods
What would be examples of companies currently goin...
  Phase 6... Create Alliances And/or Rebuild Organization?
Does management restructure the organization at th...
  When Can We Call a Company a Multinational?
Can anyone clear to me that in which situation we ...
  Alternative Forms of Organization Development
Hi everyone.. Can anybody give me some ideas re...
  Greiner Chart should be a Circle
While reading about Greiner's Growth Phases model,...
  Add Learning and Innovation
There must be one more step - Learning and Inno...
  Input parameters for each phase of growth?
Thinking about each phase of growth, what are the ...
  Limitations of the model by Greiner
Given that the model has been shown in a continuou...
  Greiner Five Phases of growth
1. The Five(six) Phases of growth is a measure of ...
  Length of Greiner Phases
Is there any typical time frame for each phase?...
  Growth of Communities
Does this apply to community organizations as well...
  What Leadership Style is Required in Greiner's 6th Stage?
What kind of leader (style) is preferable in the g...
  Greiner vs. Mintzberg?
What's the main difference with Mintzbergs model?...

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Best Practices - Growth Phases Premium
  Organizational Death... A Taboo?
Another approach is to take a broader and cyclic v...
  Is an Organizational Crisis a Must for Growth?
It is typical for Greiner's thinking that the grow...

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Critical Success Factors for 2nd Generation SuccessionSign up

Often small businesses are transferred from one ge...
Usage (application): Small Business Succession, Best Practices

How to Achieve Sustainable Growth?Sign up

A study conducted by Bain & Company revealed that ...
Usage (application): The Factors Determining Sustainable Growth

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The Nature and Complexity of Organizational ChangeSign up

Presentation about organizational change. The pres...
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Greiner's Model of Organizational GrowthSign up

The growth phases model of Larry E. Greiner sugges...
Usage (application): Greiner, Growth, Stages of Growth, Phases of Growth, Organizational Change

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Usage (application): Organizational Development

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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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