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Any organization has a life cycle that includes predictable stages. Each stage contains its own problems and tasks.
Itzhak Adizes, a world-famous business consultant, identifies 9 stages:
1. Courtship
At this stage, the organization does not yet exist, but there is an idea to create it. The founder collects opinions, necessary information, lays the theoretical foundation for the future organization.
The founder of the organization must have answers to the questions: “What will the organization do? How and when can this be done? Who is going to do this and why?
2. «Infancy»
At this stage, the organization does not have a clear structure and system for the distribution of powers, responsibilities, and a hiring system. She is very personalized, has a small budget.
The main focus of the organization’s activities is on meeting the needs of its customers and on the results of its work. Decisions at this stage are usually made quickly, but due to the lack of sufficient experience, they may not always be successful.
The development of the organization will continue if a constant flow of funds is ensured. And if its founder is completely confident in the success of his own idea, he is devoted to it.
3. «Childhood» or «Come on, come on» (Go-go)
The activities and cash flows of the organization become stable. The organization is successfully developing, there is a rapid growth. The organization still does not have a clear management structure or established functional responsibilities. The organization is not centered around tasks, but around people.
The organization will develop further if the leader begins to delegate his authority and responsibility in time.
4. «Youth» (Adolescence)
At this stage, the organization changes a lot. Its further development will be possible only if discipline, system and order are established. The structure of the organization is changing, professional managers are being hired.
A large number of conflicts and contradictions appear between old and new employees of the organization, contradictions in its goals may begin. To continue development, it is necessary to systematize administrative activities.
5. Prime
This stage occurs if the systematization of administrative activities has been carried out successfully.
At this stage, the organization is both flexible and manageable, has prescribed functions and a clear structure. She is engaged in planning her activities and subsequently follows her plans, is focused on results and meeting the needs of her clients, and works efficiently. Its employees are good team players. Often at this stage, affiliated infant organizations are created.
6. «Stabilization» or «Late flowering» (Stabilization)
This is the first stage in the aging of an organization. The organization’s flexibility is decreasing, innovation is being reduced, it is not striving for change. Increasing importance is given to interpersonal relationships between employees, rather than capturing new markets, expanding the coverage areas of existing ones. All this can negatively affect the satisfaction of the organization’s customers in the future.
7. «Aristocracy» (Aristocracy)
At this stage, the organization owns significant financial resources, which it spends on strengthening the existing control system, arrangement, and insurance. The main thing in its activity is not what and why is produced, but how. For the purpose of development in the organization small innovations can be introduced, other organizations can be acquired. But the orientation of the organization to the long-term result is much lower than in the previous stages. To maintain the existing level of profit, prices for its products or services rise, but this process is not endless.
8. Early bureaucracy
This stage characterizes a large number of conflicts and problems, distance from customer satisfaction. Now the focus of the organization is on who is to blame for problems rather than what needs to be done to fix them.
9. «Bureaucracy and death» (Bureaucracy and death)
The organization does not seek to improve the efficiency of its activities, to change, is not focused on the result, on the needs of consumers. It has strict control over activities, compliance with all accepted rules, regulations and procedures.
If the activity of the organization directly depends on the clients, then at the moment of their complete refusal of its services, the death of the organization may occur. The onset of the stage of death for it can be delayed for some time if the organization produces some kind of monopoly product or has state support.
Properly built strategy and tactics for the development of the organization will help not only to reach the stage of prosperity, but also to remain in it for a long time.