Framework for Understanding Small Business Growth Stages PPT
This PPT slide, part of the 25-slide Five Stages of Business Growth PowerPoint presentation, presents a framework outlining the 5 stages of small business growth, emphasizing the unique challenges and crises associated with each stage. It categorizes these stages based on the size and complexity of the organization, as well as the age of the company.
In Stage I, labeled "Existence," growth is driven by creativity,, but the business faces a crisis of leadership. The founder struggles to provide the necessary leadership to transition the company into a more structured entity. This stage highlights the need for a leader who can manage the chaos of early growth.
Stage II, "Survival," marks a shift where growth is achieved through direction. Here, the organization encounters a crisis of autonomy, as the increasing complexity raises questions about decision-making authority. The challenge lies in defining roles and responsibilities amidst growing layers of management.
Moving to Stage III, "Success," the focus is on delegation as a means of growth. However, this stage introduces a crisis of control, where decision-making can become misaligned with the company’s central strategies. This misalignment can hinder effective operations and strategic coherence.
In Stage IV, "Take Off," growth is achieved through coordination. The organization faces a crisis of bureaucracy, where established policies may impede responsiveness and effectiveness. This stage underscores the tension between centralized control and the need for agility.
Finally, Stage V, "Resource Maturity," emphasizes growth through collaboration. At this stage, the organization becomes susceptible to various forms of crises, indicating that even mature businesses must remain vigilant and adaptable to sustain growth.
This framework serves as a valuable guide for leaders to understand the evolving nature of their organizations and the critical transitions required at each stage.
This slide is part of the Five Stages of Business Growth PowerPoint presentation.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. The 5 Stages of Growth framework is one of the most popular and effective Business Maturity Models used by Strategy Consultants.
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Maturity Model Growth Strategy Entrepreneurship Small Business Leadership Creativity Creativity
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