Navigating the Stages of Business Growth: A Master Vistage Chair’s Step-by-Step Guide
I first joined Vistage Worldwide, Inc. as a member in 1995. I’d been running my company for six years but was terrified that it would fail as my first business had thirteen years prior. My CPA told me about Vistage, the world’s largest CEO coaching and peer advisory organization for small and midsize business leaders. I went to the first meeting and walked away feeling more in control of my success than ever. I learned so much at that one meeting with a group of a dozen other CEOs that I decided to join.
I have been a Vistage Chair in NYC for fifteen years, and I focus on positively impacting the lives of the members I work with. I want to help my members achieve their personal and professional goals by providing valuable insights, guidance, and support.
As a member and Chair, I know that knowledge is the key to lasting change and powerful leadership. In Vistage, I have learned from the best, and much of my work is identifying which insights and wisdom will most benefit each member. For the next few weeks, I will share the research and conclusions of some of the giants in the field of management that deeply inform my work:?Ichak Adizes, Elliott Jaques, and Patrick Lencioni.
?Ichak Adizes & Corporate Life Cycles
I learned about Adizes’ work in the late 1990’s from Vistage speaker Ian MacDougall and realized my actions needed to coincide with the stage of my business. ?
Companies, like living organisms, go through various stages of development. Adizes’ Corporate Life Cycle Model provides an insightful framework for business growth and maturity. Here, I’ll explore the first six stages of the Adizes corporate life cycle, the signs that help determine which stage your company is in, and strategies for transitioning to the next phase.
Stage 1: Courtship
?In the courtship phase, an idea or concept is born, and the founder explores its potential. This stage is marked by excitement and passion for the idea, but no concrete business structure exists.
?Signs:
Strategy to move to the next stage:
Stage 2: Infancy (Start-Ups)
In the infancy stage, the company takes its first steps, focusing on survival which is only possible through sales. The business is constantly in flux as it tries to establish itself.
Signs:
Strategy to move to the next stage:
Stage 3: Go-Go
At the Go-Go stage, the company begins to experience rapid growth. Business processes are still informal, and the organization is highly reactive to opportunities. The focus is on methods/processes for sustainable growth.
?Signs:
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Strategy to move to the next stage:
Stage 4: Adolescence
?During adolescence, the organization faces a crisis of leadership and control. The founder may struggle to relinquish control, and the company must balance growth and stability. This is done by focusing on creating systems.
Signs:
?Strategy to move to the next stage:
Stage 5: Prime
?In the prime stage, the company balances flexibility and control. The organization is well-structured, profitable, and focused on sustainable growth. This is the point that a company should focus on integrating systems.
?Signs:
?Strategy to maintain and continue growth:
?Stage 6: Stability
?After reaching the prime stage, companies may transition into a period of stability. The organization has established a solid market position and maintains steady growth. However, there is a risk of becoming complacent and less responsive to market changes. Focusing on creating and adapting a clear, compelling vision relevant to an ever-changing market will help mitigate this risk.
?Signs:
?Strategy to maintain growth and avoid stagnation:
By understanding and navigating through the Adizes corporate life cycle stages, businesses can identify their current position and apply appropriate strategies to maintain growth and achieve long-term success.
What stage is your business at??