CORPORATE LIFE CYCLE

  • Courtship: A pre-establishment phase when ideas and possibilities are discussed to start the venture.

  • Infancy: Action time, when venture is started.  A few policy system, procedures or budgets.

  • Go-Go: Company's cash flow and sales are up. The company is not only surviving , it is growing.

  • Adolescence: A company is reborn. The phase demands delegation of authority, professionalism and setting of new goals.

  • Prime: It is the optimum point on the lifecycle curve.

  • Stable: The Company is still strong , but it starts to lose its flexibility. There are less conflicts. People spend more time in the office with eachother that with clients or sales people. 

  • Aristocracy: Money is spent on control systems, benefits and facilities. More formality in behavior and dressing. Low innovation. Emphasis is on how things are don rather than why it is done.

  • Early Bureaucracy: Emphasis is on who caused the problem rather than what to do about it. More backstabbing and infighting. Customer gets less attention. 

  • Bureaucracy: Many systems  with little functional approach. It disassociates from its environment.  Customers face problem to get things done therefore they try to find ways to bypass or break the system.

  • Death: Bureaucratic organizations may survive for years inefficiently and ineffectively. Death occurs when no one is committed to the organization.

 

Information taken from Corporate Lifecycles by Ichak Adizes

 

 

 

   

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