There are several other models of company life cycles (about ten). Most of them were formed between 1967 and 1983 in the United States. Each of them has its own method of conducting research and interpreting the collected data. Below are some of them in the order in which they appeared.
"The Driving Forces of Growth", 1967, author - E. Downs.
The very first model that was applied to the work of state committees.
E. Downs identified three phases in the process of development and growth of a company:
The phase of struggle spain email list for independence. This is the moment when the company has not yet been created or has just been formed and it strives to identify itself on the market, to get everything necessary for survival.
The phase of rapid development, when the company grows, boldly introduces innovations, generates and implements creative ideas.
The slowdown stage, at which all processes are formalized and subject to total control by management.
"Managerial Participation", 1967, authors - G. Lippitt and W. Schmidt.
This is a life cycle model for private companies.
Lippitt and Schmidt identify three stages in the development of private commercial enterprises:
The formation stage, when the company itself is formed, its management structure and organization gradually gets on its feet.
The stage of youth, during which the company gains confidence in its abilities and earns a reputation in the market.
Maturity stage. The period when the enterprise becomes unique in its kind, gains confidence and high competitiveness.
This model identifies six key management tasks for the business founder that must be completed incrementally as they move from stage to stage.
"Leadership Problems in the Stages of Evolution and Revolution", 1972, author - Larry Greiner.
The basis for the formation of this model is the hypothesis that external factors are not so important for the development of a company. The history of its formation and internal circumstances play a major role here. The same theory was then put forward regarding human behavior. It was believed that it is precisely events from the past that influence it.
As for the life cycle of a company, according to Greiner, the following five factors influence its formation:
the period of existence of the company;
its size;
stages of development;
current stage;
the rate of formation of new spheres of influence.
Based on these data, Greiner formulated five main phases that make up the life cycle of a developing company:
Implementation of innovative technologies and products . Initially, a business is created on the creative impulse of an entrepreneur, innovations and creativity. But after a while, something more is required for the company to grow and develop. The manager needs to delegate some of his powers to other people and implement a division of labor. If this is not done in a timely manner, you will have to face the problem of a leadership crisis.
Active growth due to changes in management strategies . This is the period of transformation of the organizational structure of the enterprise, when rules of interaction between employees are developed, responsibilities are distributed among them, measures of responsibility, incentives, and punishments are assigned. However, along with this, increasing slowness and bureaucracy are observed in the management apparatus, and control over employees is tightened. There is a distancing of some departments, which, dealing with their own problems, forget about the common goals.