“Growth is not linear; it is a series of stages that force you to keep reinventing your organisation. That continuous movement – from challenge to adaptation – enables real growth.”
Erry de Boer, CEO of Eqeep
You have started a young, successful company that is growing like crazy. As an entrepreneur, you know how challenging that is. Each phase brings new questions and obstacles. How do you keep growing without losing your core values and creativity? The Greiner model provides a clear framework for understanding your organisation’s five growth phases. This allows you to anticipate challenges and sharpen your strategy. In this article, we explore these phases. In five follow-up articles, we delve deeper into each phase and show how technology can help you overcome growing pains.
The start-up phase: make it or break it
Larry E. Greiner introduced a model in 1972 that describes the growth of organisations in a number of phases. His model shows how each growth phase starts with evolution (steady growth) and ends with revolution (crisis), a step that is necessary for an organisation to develop further. Let’s start at the beginning: the start-up phase. In this early period, you are mainly developing your product or service. The team is small and dynamic, full of energy and creativity. Everyone works hard to make the launch a success. But the deluge of ideas can sometimes be overwhelming. The challenge? Create structure without disrupting the creative flow. Use technology to set up processes smartly from day one and align everyone with clear goals.
The rollercoaster phase: balancing structure and growth
Your product finds its way to market, and the first customers come in. The organisation grows and the need for more structure arises. You start appointing the first managers and setting clear goals. How do you keep the balance between the entrepreneurial nature of your business and the need for planning and organisation? Integrated tools, such as an ERP system, can help you make processes more efficient and avoid chaos, without becoming rigid. This is how you maintain the flexibility that makes a start-up so valuable.
The adolescent phase: learning to trust and delegate
The organisation is growing and the number of employees starts to steadily increase. These people want to be able to work independently and shoulder their responsibilities. You have to learn to delegate, but that is not always easy if you are used to doing everything yourself. How do you delegate tasks without losing the overview? This is the time to invest in your team. Give your team the confidence and space to make decisions, because that is the key to further growth. A good leader empowers his people and lets them shine. Smart technology supports you in this by providing insight into workflows and performance. Trust your team, give your people the right tools, and create a culture in which responsibility and development are central.
The scale-up phase: staying agile in a larger organisation
Staff numbers are growing again, and with multiple teams and several ongoing projects, it is even more important to coordinate work processes well. New systems or software can help everything run smoothly, but the risk of bureaucracy lurks. In this phase, the trick is to balance efficiency and agility. Automation and data analysis help you make faster and better decisions, without your organisation losing flexibility.
The flow phase: collaboration and external growth
Staff numbers exceed 100 and the focus shifts to intensive collaboration. Teams now work cross-functionally, meaning that different departments work together on projects. This requires a strong emphasis on culture and communication within your organisation. How do you make sure everyone feels connected, despite the growth and increasing number of employees? Team building, open communication and smart technologies that support collaboration are vital. Use digital solutions to share ideas and information effortlessly to drive innovation.
Why the Greiner model is valuable for your organisation
The Greiner model gives you a framework to understand where you are and what to expect. By embracing the growing pains and opportunities of each stage, you can guide your business through the path of development more effectively and with greater confidence. Technology plays a key role in this process. Smart tools make growth manageable, give you insight into your performance and help you make timely adjustments.
“Companies in growth want to stay ahead. That requires best-in-class solutions that streamline processes and sustainably support growth. That’s where we at Eqeep can help with all our knowledge and expertise.”
Erry de Boer
Want to know more?
Curious about the details of each growth phase? If so, subscribe to our newsletter at the bottom of this page or follow our LinkedIn page for the five follow-up articles, in which we delve deeper into the specific challenges and opportunities for each phase. Want to take steps now to streamline your growth? Check this page to discover how NetSuite SuiteSuccess Starter and Eqeep’s expertise support your start-up or scale-up through each stage. Need a quick sparring session? Make an appointment with Indra Zunder, our pre-sales consultant.