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The Greiner Curve
Growth is seen as a great thing in business – and in many cases, it certainly is. After all, if a business does not grow, it is destined to disappear in the end. All businesses start work each day with the goal of growing toward a better, and more profitable, tomorrow.
However, there are tons of challenges that come along with growth, meaning that each company has to be ready to adapt as they grow if they are really going to thrive.
The idea behind the Greiner Curve is that there are inevitably going to be challenges, or ‘crises’, that arise over time as an organization grows. These crises are likely to pop up between periods of steady growth, and each one will need to be handled properly if the growth is going to continue.
Phase One – Growth Through Creativity
Phase Two – Growth Through Direction
Phase Three – Growth Through Delegation
Phase Four – Growth Through Coordination and Monitoring
Phase Five – Growth Through Collaboration
Phase Six – Growth Through Extra-Organizational Solutions
Изменения и жизненный цикл организации
ИНТРОДАКШЭН
Развитие организации похоже на развитие живого организма в биологии. Это отражается в целом ряде концепций и теорий, объясняющих, почему организации изменяются.
Большинство из них выделяют стадии развития: зарождение, рост, зрелость и угасание. Компании проходят через эти этапы по-разному, причем не обязательно все компании должны последовательно проходить все эти этапы.
Существуют компании, имеющие длительный опыт работы на рынке и тем не менее процветающие. Но их успех определяется своевременными изменениями, всякий раз ведущими к росту адаптации компании к меняющейся окружающей среде.
Логика модели состоит в следующем: компании в своем развитии проходят определенные этапы и она строится на изучении пяти факторов:
1) размер компании;
2) продолжительность существования (возраст) компании;
3) этап, на котором находится компания;
4) уровень развития компании;
5) темпы роста отрасли.
Исходя из этих факторов роста, Грейнер выделил шесть его этапов. Каждый этап, как уже упоминалось, состоит из эволюционной фазы и фазы изменений. Рассмотрим эти этапы.
Change and the life cycle of the organization
INTRODACTION
The development of an organization is similar to the development of a living organism in biology. This is reflected in a variety of concepts and theories that explain why organizations change.
Most of them distinguish stages of development: origin, growth, maturity and extinction.( зрелость и угасание)
Companies go through these stages in different ways, and it is not necessary for all companies to go through all these stages sequentially.
There are companies that have long-term experience in the market and, nevertheless, they are still prosperous. But their success is determined by timely changes, each time leading to an increase in the company's adaptation to a changing environment.
The logic of the model is as follows: companies go through certain stages in their development and it is based on the study of five factors:
1) the size of the company;
2) the duration of the existence (age) of the company;
3) the stage at which the company is located;
4) the level of development of the company;
5) the growth rate of the industry.
Based on these growth factors, Greiner identified six stages of growth. Each stage, as already mentioned, consists of an evolutionary phase and a phase of change. Let's take a look at these steps.
Этап 1. Рост через творческий подход.
На этом происходит зарождение и становление организации, начало товарного производства, формирование рынка. Для эволюционной фазы этапа характерно, что руководством компанией занимаются ее учредители, распределение функций между которыми строго не фиксировано, но «эволюционирует» в зависимости от способностей и склонностей участников.
В центре находится участник компании, обладающий лидерскими качествами, которому подчиняются другие участники.
Девиз такой — «так лучше для дела». Из этих же соображений участники не поддерживают конфликты, а стремятся быстро найти компромисс по различным вопросам управления. Все ждут друг от друга самоотдачи на работе.
По мере роста компании старые методы работы приходят в противоречие с новыми задачами, эффективность работы падает, появляются конфликты по текущим решениям и споры между партнерами относительно новых рынков и продуктов становятся повседневностью. Лидерство и авторитет руководителя все чаще ставятся под сомнение.
Дальнейшее развитие может быть обеспечено только на базе полной перестройки всей системы управления. Это разработка и внедрение новой структуры управления. Это повлечет за собой множество других успешных изменений.
Stage 1. Growth through creativity.
This is the origin and formation of the organization, the beginning of commodity production, the formation of the market. For the evolutionary phase of the stage, it is characteristic that the company is managed by its founders, the distribution of functions between which is not strictly fixed, but it “evolves” depending on the abilities and inclinations of the participants.
In the center is a member of the company with leadership qualities, to whom other members are subordinate.
The motto(девиз) is “it's better for the business”. For the same reasons, the participants do not support conflicts, but tend to quickly find a compromise on various management issues. Everyone expects dedication from each other at work.
As a company grows, old ways of working process face with new challenges, efficiency decrease, conflicts arise over current decisions, and disputes between partners regarding new markets and products become common. Leadership and authority of a leader are increasingly being questioned.
Further development can only be ensured on the basis of a complete restructuring of the entire management system. This is the development and implementation of a new management structure that will entail(повлекут за собой) many other successful changes.
Stage 2. Growth through directive leadership.
Now that good leadership has been established, the company can continue to grow - and the work that is done will usually become more formal in nature.
Rather than the chaos that exists at an entrepreneurial level, companies that reach this stage will begin to lay out some defined systems that can be followed in order to sustain growth going forward. However, the company is likely now to reach a point where one person, or even a team of people, cannot make all of the decisions that need to be made.
So, naturally, those decisions will have to be delegated out to various department heads and other managers. The people who actually have product or service knowledge will need to be given more control over their individual units.
Этап 3. Рост через делегирование.
Growth again is spurred on now that the company has more decision makers in place, but there is also risk at this point as well. The leadership that had grown accustomed to making all of the decisions for the business will now need to step back a bit to allow the managers at lower levels to do their jobs.
Одна из важнейших проблем, требующих экстренных изменений, — снижение мотивации специалистов и менеджеров низового и, главным образом, среднего звена. Эта проблема несет за собой уход из организации хорошо подготовленных и достаточно опытных специалистов и управленцев, которые не видят перспектив для удовлетворения своих карьерных амбиций. Основной причиной этого явления является переход организации на более механистические системные позиции, бюрократизация и формализация многих процедур, в том числе и карьерного роста.
«Кризис контроля», характерный для этого этапа протекает на фоне интенсивной конкурентной борьбы, которую приходится вести из-за дифференциации бизнеса по многим направлениям. Попытки топ-менеджеров восстановить контроль оказываются неудачными, так как число различных рынков и операций стало слишком большим и жесткие детерминистские модели ситуации оказываются неэффективными в качестве основы для планирования изменений.
Выход из данной ситуации состоит в том, чтобы спланировать и осуществить такие изменения, которые позволят не столько контролировать положение дел в дочерних компаниях или в бизнес-единицах, сколько обеспечить координацию деятельности всех структурных подразделений.
Stage 3. Growth through delegation.
Growth again is stimulated now that the company has more decision makers in place, but there is also risk at this point as well. The leadership that was used to making all of the decisions for the business will now need to step back a bit to allow the managers at lower levels to do their jobs.
One of the most important problems requiring urgent changes is the decrease in the motivation of specialists and managers of the lower and middle level. This problem leads to the departure from the organization of well-trained and sufficiently experienced specialists and managers who do not see prospects for satisfying their career ambitions. The main reason for this phenomenon is the transition of the organization to a more mechanistic systemic position, bureaucratization and formalization of many procedures, including career growth.
The "crisis of control" characteristic of this stage proceeds against the background of intense competition, which has to be conducted(проводится) due to business differentiation in many areas. Attempts by top managers to regain control are unsuccessful, as the number of different markets and operations has become too large and rigid deterministic models of the situation are ineffective as a basis for planning change.
The way out of this situation is to plan and implement such changes that will allow not so much to control the state of affairs in subsidiaries or business units, but to ensure coordination of the activities of all structural divisions.
Этап 4. Рост через координацию.
Successfully moving through phase three and into phase four is a big step, as companies who reach this point now have a lot of advantages working for them. With a well-organized structure in place and plenty of decision makers empowered to make choices that positively affect the company, further growth is often close at hand. However, this is the point where some businesses go ‘over the top’ in terms of structure and rules. When there is too much red tape involved in getting anything done, growth can be slowed. In the worst case, the company may even lose its way in terms of what it does best and how it thrived originally. Navigating past phase four is going to require some ‘clean-up’ of the structure that has developed in earlier stages.
Установление общекорпоративного порядка расходования капитала приводит к более эффективному использованию ресурсов, и менеджеры на местах действуют, ориентируясь не только на собственные потребности, но и на потребности руководимых ими бизнес-единиц.
Организации, перешедшие на этот этап координации ресурсов, обычно располагают очень большими производственными мощностями, развитыми рынками, и им становится тесно в рамках сложившихся потребностей целевых групп потребителей. Но в то же время у менеджеров среднего и низового звена начинают все сильнее проявляться недоверчивость и осторожность, и в конечном счете принятые правила и процедуры становятся не средством для решения поставленных задач, а основной целью.
Stage 4. Growth through coordination.
Successfully moving through phase three and into phase four is a big step, as companies who reach this point now have a lot of advantages working for them. With a well-organized structure and many decision makers who are allowed to make choices that positively affect the company, further growth is often just around the corner. However, this is where some companies go out of control in terms of structure and rules. When there is too much bureaucracy to do something, growth can slow down. At worst, a company may even get lost in what it does best and how it prospared in the first place. To get past the fourth stage, it will take some "cleaning" of the structure, which was developed in the earlier stages.
Establishing a general corporate procedure for spending capital leads to a more efficient use of resources, and local managers act, focusing not only on their own needs, but also on the needs of the business units they manage.
Organizations that have moved to this stage of resource coordination usually have very large production capacities, developed markets, and they become cramped within the framework of the established needs of target groups of consumers. But at the same time, the managers of the middle and lower level begin to show more and more distrust and caution, and in the end, the adopted rules and procedures become not a means for solving the tasks set, but the main goal.
Этап 5. Рост через сотрудничество.
Many organizations will never reach this stage – but those who do should be in line for serious financial rewards. At this point the company is working together nicely from one department and manager to the next, and there are plenty of incentives to keep everyone happy.
На этом этапе организация переживает комплексные изменения: на первый план выходит требование создания команд, в том числе и для принятия важных решений. Внимание уделяется организационным, лидерским и поведенческим навыкам менеджеров. Для их развития используются тренинги.
В плане стратегических изменений наибольший интерес на этом этапе представляют решения, которые сосредоточиваются на создании и продвижении принципиально новых продуктов.
Однако изменения, связанные с продвижением принципиально новых инновационных продуктов, когда польза и вред становятся слишком глобальными категориями, люди в организациях начинают задумываться: «А зачем все это нужно, и не наносим ли мы нашим потребителям вред, и куда же идти дальше?»
Stage 5. Growth through collaboration.
Many organizations will never reach this stage - but those who do should be in line for serious financial rewards. At this point the company is working together nicely from one department and manager to the next, and there are plenty of incentives to keep everyone happy.
At this stage, the organization is undergoing complex changes: the requirement to create teams, including for making important decisions, comes to the fore. Attention is paid to the organizational, leadership and behavioral skills of managers. Trainings are used to develop them.
In terms of strategic changes, the most interesting at this stage are solutions that focus on the creation and promotion of fundamentally new products.
However, the changes associated with the promotion of these products, when benefits and harms become too global categories, people in organizations begin to think: "Why is all this necessary, and are we not causing harm to our consumers, and where to go next?"
Phase Six – Growth Through Extra-Organizational Solutions
Working with companies that offer complimentary products and services is likely the only growth left for a business that has arrived at phase six. Finding ways to work with other organizations so that the core of the original business is not affected will be challenging, but potentially very rewarding. Partnerships can have explosive potential, so the company will need to be prepared for the possibility of rapid growth if a successfully partnership is established.
Итоги и выводы
В реальной действительности практически не существует организаций, которые не сталкивались бы с необходимостью изменений. Такая необходимость продиктована внешними и внутренними причинами.
Growth has always been, and will continue to be, a great thing for businesses. However, it is also a dangerous thing, as should be clear by reviewing the six phases above and the crises that can come along with them. If you would like to grow your organization over time, it is clear that there are several hurdles which will need to be cleared as that growth continues. Using this model is a great way to understand the challenges ahead, so that they can be anticipated and safely navigated without slowing the growth of the organization.
Существуют особенности проведения изменений на различных фазах жизненного цикла организаций. Модели жизненного цикла организаций, в частности Л. Грейнера, показывают, что на разных его этапах возникают разного типа проблемы, требующие преимущественно изменений того или иного типа.
Results and conclusions
In reality, there are practically no organizations that do not face the need for change. This need is caused by external and internal reasons.
Growth has always been, and will continue to be, a great thing for businesses. However, it is also a dangerous thing, as should be clear by reviewing the six phases above and the crises that can come along with them. If you would like to grow your organization over time, it is clear that there are several hurdles which will need to be cleared as that growth continues. Using this model is a great way to understand the challenges ahead, so that they can be anticipated and safely navigated without slowing the growth of the organization.
There are peculiarities of making changes at different phases of the life cycle of organizations. Models of the life cycle of organizations, in particular by L. Greiner, show that at different stages of it, various types of problems arise, requiring mainly changes of one type or another.