Greiners Growth model

• What does Greiner's Growth Model predict?

  Six phases and five crises of business growth
• What are the five predicted crises of growth in Greiner's Growth Model?

  1. Crisis of Leadership
  2. Crisis of Autonomy
  3. Crisis of Control
  4. Crisis of Red Tape
  5. Crisis of Growth
• What is the first growth phase in Greiner's Growth Model?

  Growth Phase: Direction
• What crisis occurs during the Growth Phase: Direction?

  Crisis of Leadership
• What happens to communication during the Crisis of Leadership?

  Informal communication starts to fail
• What is the second growth phase in Greiner's Growth Model?

  Growth Phase: Delegation
• What crisis occurs during the Growth Phase: Delegation?

  Crisis of Autonomy
• What management structure is present during the Growth Phase: Delegation?

  Functional management
• What struggle does the founder face during the Crisis of Autonomy?

  Struggling to let go
• What is the third growth phase in Greiner's Growth Model?

  Growth Phase: Coordination
• What crisis occurs during the Growth Phase: Coordination?

  Crisis of Control
• What management structures are in place during the Growth Phase: Coordination?

  More formal management structures
• What is needed to maintain control during the Crisis of Control?

  New layers of hierarchy
• What is the fourth growth phase in Greiner's Growth Model?

  Growth Phase: Collaboration
• What crisis occurs during the Growth Phase: Collaboration?

  Crisis of Red Tape
• What issue arises during the Crisis of Red Tape?

  Growth in organisational bureaucracy
• What effect does bureaucracy have during the Crisis of Red Tape?

  Slowing decision-making
• What is the fifth growth phase in Greiner's Growth Model?

  Growth Phase: Alliances
• What crisis occurs during the Growth Phase: Alliances?

  Crisis of Growth
• What happens to growth during the Crisis of Growth?

  Growth slows as ideas run out
• What do businesses seek during the Crisis of Growth?

  Alliances, including new business owners
• What key messages can be learned from Greiner's Growth Model?

  • Growth is hard
  • Growth poses management challenges
  • Leadership must evolve with growth
  • Businesses must adjust to grow effectively
• What are the criticisms of Greiner's Growth Model?

  • It is simplistic
  • Not all businesses face crises
  • Doesn't account for growth pace in dynamic environments