BUSINESS AND

LEADERSHIP LIFE CYCLES

 BUSINESS AND LEADERSHIP LIFE CYCLE
c l ine
De
UNDERTAKER

Maturity SURGEON

CARETAKER
Growth

RISKTAKER
Embryyonic
stage
 BUSINESS AND LEADERSHIP LIFE CYCLE
• Organizations like product, have a lifecycle.
• During the embryonic stage, leaders are like missionaries who seek to convert
others to their religion.
• Like missionaries, risk takers come up with a new business proposition for which
there are no known customers but still soldier on.
• The requirements of a new business, call for a risk taker’s skills.
• These are leaders who are highly intuitive and adaptive and depend on their
feelings and insights for success.
• However, as the business grows more slowly, risk takers do not have the patience
required for success calling for the skills of the caretaker.
• These blend strong administrative talents with ability to move the organization
forward.
 BUSINESS AND LEADERSHIP LIFE CYCLE
• As the company and market become mature and intensity
of competition increases, caretakers have to pass on the
button stick
• Give the emotional attachment to products and services of
the organization that may have to be eliminated.
• Surgeons must discard of the caretakers’ concern for
stability.
• They are more of risk takers in this scenario save for the fact
that their concern is with survival/renewal rather than
growth per se.
 BUSINESS AND LEADERSHIP LIFE CYCLE
• They eliminate unwanted parts of the organization that
were established during the growth stage and remain with
just the parts that still generate profit for the organization.
• Undertakers on the other hand are relevant during the
decline stage and have to manage the organization
towards its conclusion.
• In this situation, compassion and decisiveness are of the
essence.
• This involves termination of the business or even merger with
another and in the process lose the initial identity.
 BUSINESS AND LEADERSHIP LIFE CYCLE

Embryonic-RISKTAKER Growth- CARETAKER Maturity-SURGEON Decline-UNDERTAKER

Missionaries Cautiously adaptive Not tied to status quo Compassionate

intuitive Administrative Challenge folklore Decisive

adaptive Experienced Survival driven

flexible Predictable

dynamic
 EMBRYONIC AND RAPID GROWTH – RISK TAKER
• Here the leader and his team must be willing to stake their reputation and
earnings on something that is new for which there is no guarantee of
success.
• They need to have the vision and dedication of a missionary.
• Like missionaries, they work to convert others to their cause or invention
sometime under great resistance.
• Regardless however of dedication and commitment, the new idea may fail
because it is ahead of time.
• As the new idea gain acceptance, and enters high growth period, the risk
taker will remain put
• Seen as relevant and high fliers as the extraordinary growth hides the many
flaws in the leader because of high sales volumes and profits.
 EMBRYONIC AND RAPID GROWTH – RISK TAKER
• Smart risk takers start considering transition plans at this point.
• If this does not occur, the risk taker will turn into an ineffective caretaker also.
• Henry Ford is a case in point.
• The same case can also be made of Bill Gates and Microsoft.
• Time will also judge the founder of Google who recently returned as CEO of
his company.
• Nigel Chanakira’s return to Kingdom is also a case in point.
• This is particularly true of family businesses dominated by “legends in their
own minds”. Transition must always be handled carefully for success.
 SLOW GROWTH-CARETAKER
• Growth moves from double digit to single digit and when
this happens, leaders need to be more disciplined and
systematic.
• Risk taker leadership style has therefore to give way to
caretakers who are patient, system oriented and amenable
to slow growth.
• Smart risk takers recognize their limitations and so move on.
 MATURITY AND DECLINE
• This is characterized growth that is leveling off and then
declines.
• The caretaker leader becomes incompatible with this new
setting and has to give way to a new leader – surgeon.
• Attachment to folklore and history of the firm makes it
impossible for the same leadership style to make the
necessary decisions.
• The analogy here is similar to that of parents of adult
children having to part with them as they start their own
families.
• Surgeons are more relevant because they do not have
emotional attachment with markets and products.
 MATURITY AND DECLINE
•The organization requires an individual with a sober
mind and will look at everything objectively.
• They will prune the tree of the unwanted branches
affecting its health and products and services
threatening the life of the organization.
•The surgeon will retrench branches, products and
employee regarded as being in excess of
requirements.
 CUSTOMER TYPES
• Risk taker leaders go hand in hand with risk taking
customers, undertakers with laggards, caretakers with early
majority while surgeons with late majority.
• Here there is commonality of interest between the two
groups.
• This is however true of consumer products and not industrial
products.
• Provision of guarantees and lease facilities tend to be used
as inducements in the case of industrial products.
• Caretaker leaders seek for customers who are willing to pay
for performance and not just for something different.
• Recognition is key for success of caretaker leaders.
 COMPETITOR TYPES
• Risk takers do well with all competitor types different from
them and this also applies with all other leadership styles.
• Caretaker leaders exploit the timing advantage
• Caretakers can be victorious against premature harvesters
• Caretaker leaders prevail over risk takers who try to do too
much too soon
• Caretaker leaders defeat the impatient asset stripper
• Surgeons and undertakers on the other hand are said to rule
the ghost town.
• The level of competition is low or has disappeared
altogether.
 STAKEHOLDER TYPES
•Investors – the motivation and objectives of various
types of investors differ considerably.
•Risk takers need risk taking investors
•Caretakers are good for widows and orphans
•Surgeons and undertakers also need risk taking
investors
 EMPLOYEE TYPES
•The goals and needs of employees are just as varied
as those of investors.
•Some need long-term relationships with companies
and yet others need short-term relationships but with
high pay-offs.
•Some want security while others seek challenges
and excitement.