Understanding Greiner’s
Model of Organizational
Growth
By- Shefali Thakur
1. Introduction
➢ Greiner’s Growth Model is a framework that
shows the different phases a company goes
through to achieve growth and the different types
of crisis that may occur during those milestones.
➢ It is commonly used by businesses to self-identify
obstacles they are facing that will hamper their
efforts to achieve their full potential.
➢ The Greiner’s Growth Model was invented by
Larry E. Greiner in 1972 with the five phases of
growth. In 1998 he updated the model to add the
sixth phase around Alliances.
2. Phases of Growth in the Model
1. Growth Through Creativity:
•Begins with a spark of an idea to develop products/services and achieve product-market fit.
•Small, agile, and creative teams with informal structures and strong communication.
2. Growth Through Direction:
•Founders hire managers; decision-making shifts from founders to teams.
•Processes emerge (HR, operations), and company culture begins to form.
•Scaling leads to increasing complexity.
3. Growth Through Delegation:
•Specialist employees are hired, and key responsibilities are shared.
•Leadership focuses on strategy, while skilled teams handle specific tasks.
4. Growth Through Coordination:
•Mature stage where teams align to optimize outputs.
•Defined roles, set processes, and strong internal communication.
5. Growth Through Collaboration:
•Evolution of coordination with efficient systems and shared problem-solving.
•Teamwork, simplicity, and employee contributions drive growth.
6. Growth Through Alliances:
•Focuses on strategic partnerships, mergers, or acquisitions to scale further.
•Companies collaborate for mutual growth and expanded opportunities.
3. Crisis in the Phases of the Model
[Link] of Leadership (Creativity Phase):
•Start-ups struggle to manage growth as informal processes fail.
•Challenges: Coordinating, communicating, and motivating teams.
•Impact: Frustrated founders and key talent departures.
•Solution: Adopt a structured management style.
[Link] of Autonomy (Direction Phase):
•Managers focus on their own units over company goals.
•Conflict arises between departmental and overall business needs.
•Solution: Balance autonomy with a unified strategy.
[Link] of Control (Delegation Phase):
•Founders resist delegating control; communication gaps emerge.
•Impact: Founders overburdened, teams demotivated.
•Solution: Empower teams with clear goals and responsibilities.
[Link] of Red Tape (Coordination Phase):
•Excessive bureaucracy slows decisions and reduces agility.
•Impact: Inefficiency, reduced margins, and cultural strain.
•Solution: Streamline processes to maintain agility.
[Link] of Growth (Collaboration Phase):
•Mature companies face challenges identifying growth paths.
•Options: Alliances, partnerships, or diversification.
•Solution: Reassess industry and innovate strategies.
4. Advantages and Disadvantages of the Model
Advantages of the Model:
•Highlights predictable growth challenges.
•Simple framework for identifying phases and solutions.
•Encourages discussion and structured change for growth.
Disadvantages of the Model:
•It’s simple and in real life the lines blur between phases
•Not all companies follow the curve in a linear way
•The crises may not always occur in each phase
