Greiner’s Growth Model is a model that defines the different phases that companies go through as they continue to grow. This is applicable for any sort of business, ranging from construction to design to manufacturing companies. Every phase of growth is composed of a period of mostly stable growth. This is often followed by a ‘crisis’ period, or a turning point, where businesses have to make a change in order to ensure that the company continues to grow.
The first phase of this model is growth through creativity. This portion involves the creators being busy with creating their services and products and opening markets. There are not many staff members at this point, making informal communication something that can be done. The phase will end with a leadership turning point where professional management is going to be a necessity.
The second phase is growth through direction. This means that growth continues in an environment that is more formal. Focus and budgets are distributed to places like production and marketing. There will come a point where the processes become so abundant that there is not enough time for a single person to manage all of them, ending with phase three, delegating the jobs to other people.
Phase four is growth through coordination and monitoring where investment finance is allocated centrally. Phase five, growth through collaboration, is next and gets employees working together. The final phase revolves around growth through extra-organizational solutions, meaning that companies can grow through mergers, outsourcing and networks.