Evolution and Revolution as Evolution and Revolution as Organizations GrowOrganizations Grow

Larry E. Greiner

Chris Bahr, Keith Bolden, Christina Greer, Matt Rice, & Kelly Shepherd

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.

Costco ExampleCostco Example Growth through Collaboration

Crisis of ???

Annual “Employee Rulebook” changes

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.

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.

Test Question #1Test Question #1According 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.

AnswerAnswer The correct answer is C.The correct answer is C.

Test Question #2Test Question #2 If a company has a crisis of autonomy and If a company has a crisis of autonomy and

handles it through delegation, their handles it through delegation, their problems are solved completely. True or problems are solved completely. True or False?False?

AnswerAnswer False! Each new solution breeds a False! Each new solution breeds a

future crisis.future crisis.