Sunday, December 17

How To Survive Or Create Place In The Corporate Life Cycle

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Where does your organization is felt in the business life cycle and what to expect next? If you are an entrepreneur balance with effective management disciplines? 

There are generally accepted as ten stages in the life cycle of an organization: 

When an organization becomes usually does so as a result of someone BRAINCHILD. If the idea is not removed, then in a sense, the idea is stillborn and the business never gets off the ground. Birth of the idea though is usually the next step. 

The third phase of the cycle of life is childish. Once an organization becomes your immediate need is to survive. Keeping them alive is the main requirement, as it begins to get stronger and increase their physical attributes. The main threat now is the shortage of funds to support its initial growth. If the organization does not succeed at this stage becomes an infant mortality rate. 

As an organization survives childhood begins to see success. Classically increase the number of customers, sales volumes grow and so do the costs. The organization begins to take its own personality and with increasing confidence about the challenges is getting bigger. Sometimes too much courage makes a big mistake and without the financial resources to withstand an error occurs. The fourth stage of the life cycle is therefore child. 

As a result of the fourth stage, organizations often realize that there are dangers to avoid, but essentially they are growing and succeeding. The reproduction of its success, growth and reinvestment in the business are the hallmarks of the fifth stage of the life cycle – TEENS 

Stages one to five life cycle, while filled with obstacles and dangers, are exciting years in the growth of an organization. There is a common goal to succeed, a high response, mutual support, risk taking, celebrating success, informality and the sense of sharing experiences and learning together bonds people in the organization. 

In an effort to maintain the winning formula and avoid the formality tends to be a reluctance to accept the need for self-imposed controls. Controls, disciplines, systems and structures that are necessary to protect the organization over trade are often overlooked. In order to continue to succeed, however, the organization needs such as the size of your business and the risks inherent to require executives to have more information to make decisions and judgments. The organization simply needs more management disciplines, but has gotten used to them. 
The transition from stage five (teens) to the Prime next stage is the most delicate of the life cycle of an organization. Entrepreneurship should be maintained and approved the management disciplines. Normally there is a clash of values, differences of opinion, and a fierce exchange of views as originally built the business into conflict with newly acquired managers. It is as if the organization is going through the Civil War! To successfully achieve the right balances PRIME required there must be an acceptance of the need to grow and allow others to assume real responsibilities with an appropriate degree of freedom. This can be a painful and painstaking process to go through. Some do not believe in it, or do not want it and leave it to people. This is quite normal. Others then enter and take the challenge to make the necessary changes. 

Having arrived at Prime is vital to keep the organization there. At this stage, the organization needs to keep reinventing itself. Falling back is very dangerous and to go on top in management control is even more dangerous. If the latter is not long before the bureaucracy and an internal focus take over. Arroganceleads to a loss of customers, falling sales, lower profit margins and the best people start coming out. The organization is at the beginning of decline. 

Without a bold new vision, a strategy for change and strong leadership of the organization progresses through the terminal illness in which the checkpoint heavyweight consultants are hired and just bill the organization! 

The message is clear – organizations must balance the entrepreneurial spirit with sound infrastructure and management disciplines to succeed. Only succeed in the long run if they keep reinventing themselves. 

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