The hard, real-life environment always verifies business ideas. Drive and optimism of the entrepreneur may move the mountains, but how long before it runs out of fuel? Manage your energy wisely, and the sky is the limit. 

47 years and still counting

Greiner’s growth model (1972) suggests that there are five crises that businesses may experience as they grow. Your road to success depends on understanding the phases of the growth and risks/challenges associated with them. While the model is not new, it’s relevance has not diminished. 

Here is a simple interpretation of Greiner’s model.

• Leadership crisis – informal communication starts to fail. The business now too big for the entrepreneur to get involved in everything.
• Autonomy crisis – business now has functional management. But the entrepreneur still struggling to let go.
• Control crisis – a more formal management structure is in place. But new layers of hierarchy needed to keep control.
• Red Tape crisis – a dangerous growth in organisational bureaucracy. Slowing decision making & missing external changes.
• Growth crisis – growth slowing as the business runs out of ideas. Alliances are made.

Why should you care?

“It’s only for entrepreneurs! I am not interested.” 

Oh, how unwise! 

Regardless of your existing or future position as a professional, you will always be part of the business growth process. It would make sense to position yourself adequately. Take Greiner’s model as a reference and start making successful decisions.