![“The differences in the administrative
structure of very small and very large firms
are so great that in many ways it is hard to
see that the two species are of the same
genus… …
We cannot define a caterpillar and then use
the same definition for a butterfly”
[Penrose 1959]](https://image.slidesharecdn.com/lecture24-growth2007notes-091122015650-phpapp01/85/Lecture-24-Growth-2007notes-25-320.jpg)
Lecture 24 Growth 2007notes
- 1. Starting a Business ES2A6 Lecture 24 GROWTH
- 2. HOW DO ORGANISATIONS GROW ? SME SECTOR EVOLUTION AND REVOLUTION STAGE THEORY FORMAL CONTROL MECHANISMS CONTROL HIERARCHY ICARUS PARADOX SUCCESS
- 3. SME SECTOR GAZELLES 4% REAL GROWTH PLODDERS 75% ‘STEADY STATE’ 10% VULNERABLE 10% CEASE TRADING 1-2% DIE PAINFULLY About 3 million or 96% of Businesses
- 4. Greiner’s Model of Five Stages of Growth 1978 Large Small Size of Organisation Age of Organisation Young Old Revolution Evolution Key Creativity Delegation Co-ordination Collaboration Direction Autonomy Control Red Tape Crisis ? Leadership Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
- 5. Churchill &Lewis Model of Business Growth 1985 Small Large Young Mature Organisation Stage I Stage II Stage III D Stage III G Stage IV Stage V Existence Survival Success - Success – Take off Resource Maturity Disengagement Growth
- 6. Churchill &Lewis Model of Business Growth 1985 Small Large Young Mature Organisation Stage I Stage II Stage III D Stage III G Stage IV Stage V Existence Survival Success - Success – Take off Resource Maturity Disengagement Growth
- 7. Organisational Practices during Evolution in the Five Phases of Growth Category Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Management Make and Sell Efficiency of Operations Expansion of Market Consolidation or Organisation Problem Solving and Innovation Organisation Structure Informal Centralised and Functional Decentralised and Geographical Line-Staff and Product Groups Matrix of Teams Top Management Style Individualistic and Entrepreneurial Directive Delegative Watchdog Participative Control System Market Results Standards and Costs Centres Reports and Profit Centres Plans and Investment Centres Mutual Goal Setting Management Reward Emphasis Ownership Salary and Merit Increased Individual Bonus Profit Sharing and Stock Options Team Bonus
- 8. Churchill and Lewis Model Five Stage Model Existence Survival Success disengagement growth Take-off Resource maturity The Model looks at the changes over time to: Strategy Formal management systems and style Influence of the owner Organisational structure
- 9. Use of Formal Control Mechanisms HIGH Laissez-Faire Management Professional ManagementDelegation of Responsibility Entrepreneurial Management Bureaucratic Management LOW HIGH Level of Control
- 10. Alignment of the JET ENGINE
- 11. THE START UP TEAM ENVISIONER ENABLER ENACTOR
- 12. ENVISIONER TENDENCY TOWARDS EXPANSIVE THINKING. BREAKS THE MOULD, TERMED “CREATIVE DESTRUCTION”
- 13. THE START UP TEAM ENVISIONER ENABLER ENACTOR
- 14. ENABLER SAFE PAIR OF HANDS, GOOD ORGANISER, AND MOTIVATOR. INTERPRETER OF THE VISION. AN INFORMATION GATHERER.
- 15. THE START UP TEAM ENVISIONER ENABLER ENACTOR
- 16. ENACTOR DETAIL PERSON, WHO CAN CONCENTRATE ON ONE PARTICULAR TASK. SOMETIMES REFERED TO AS A COMPLETERFINISHER. PENS NEATLY LAYED OUT ON THEIR DESK.
- 20. With only Envisioners and Enablers, there is great enthusiasm and clear direction, but no settlers to complete the work.
- 21. When Enactors and Enablers combine, analysis paralysis may be the result. Certainly there is a likelihood that there will be less creativity and updating of vision.
- 22. Envisioners and Enactors combine to form a volatile mixture of rejection and denial. “We can see, but they don’t understand!” ……. CONFLICT !!!
- 23. In the absence of a shared vision and transparency, it is unlikely that these different attribute types will stay unified and together over the longer term.
- 25. “The differences in the administrative structure of very small and very large firms are so great that in many ways it is hard to see that the two species are of the same genus… … We cannot define a caterpillar and then use the same definition for a butterfly” [Penrose 1959]
- 26. Characteristics of the More Successful Business Personnel Approach to Markets Managerial Problem Areas Use of Governmental Help Objectives Source: Professor David Storey, CSME, WBS
- 27. Characteristics of the More Successful Business Personnel Approach to Markets Managerial Problem Areas Use of Governmental Help Objectives Source: Professor David Storey, CSME, WBS
- 28. EGG TO BUTTERFLY
- 29. BATON PASSING THE ENVISIONER, ENABLERENABLER AND ENACTOR (THE 3Es) ARE NOW ALIGNED AND RELEASE THE IDEA TOWARD COMPLETION.
- 32. TEAM ENLARGEMENT
- 33. TEAM ENLARGEMENT
- 36. Lessons from Geese 71% extra efficiency when flying in a ‘V’ formation Shared objective Recognition of roles and talents Leadership changes as circumstances demand different talents Encouragement culture - ‘Honk Honk!’
Editor's Notes
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- #18: Looking on larger scale, this is the reverse seal of U.S. and represents Federal Reserve, private banks and freemasonry Point is we start at bottom and work our way up in search of enlightenment. I will do whatever it takes to get on.
- #19: Handy sais….
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