Growth Lifecycles
The essence of sustainable growth management is the conscious understanding of where an organisation is in its lifecycle. At each stage different dynamics are in play. Knowing what they are and should be makes them manageable.
For those that have seen many organisations at all their different stages this meta-perspective is easy. For most, to see it from within their own organisation, is very hard. What is happening is just the here and now.
Dr. Ichak Adizes is one person with that meta-perspective. He wrote the book on how organisations grow and die and what to do about it. His organisational lifecycle uses 10 stages. There are others (like Robert Jones or Lawrence Miller ) who have similar models. What is important and different about Adizes work is he identifies the key dynamics that exist and must be sustained in the organisation at each stage.
For example, he uses the four dynamics of Purpose, Administration, Entrepreneurship and Integration. An Infant (Paei) reactionary business does not shift to its prime growth phase until its dynamics change. Until it develops its ‘Administration’, sales may go up for a while but growth will stop. At the later stage of Bureaucracy (pA_i), removing the ‘Administration’ handcuffs is vital to survival.
The insight is that all the management theorists are right - even those that contradict each other - it is just that they are right for different stages of the lifecycle. Knowing how the stages work means you know which part of the bookshelf to embrace, and those to avoid, for now.
But getting the stages right is only part. Despite what change management models may suggest, healthy organisations don’t often change character in jumps, but in gradual transitions, as tensions emerge and are resolved in a continuously reforming dynamic equilibrium. This process of transition will be uniquely different in each organisation.
The final part to sustainable growth management is in understanding the subtle dynamics in the transitions between stages. We then seek not to manage change, but to allow emergent change.
When we do this, development is less painful and more natural, relying not on survivalist shifts, but moving instead towards conscious sustainable growth. We achieve this when we go beyond the flatline leading to decline and begin truly emergent development.
If we can learn to do this in our organisations, just perhaps, we might be able to do this as a species.