What are the stages of the corporate life cycle

Corporate Life Cycles (CLCs) are defined by their flexibility and controllable internal relationships, not by age, sales or assets, or number of employees. The Corporate Life Cycle is divided into 10 stages:

1. The gestation period, when founders focus on ideas and future possibilities, making and talking about ambitious plans. Their commitment to risk signals the beginning of the next phase.

2. Infancy, where the founder's attention has shifted from ideas and possibilities to results. The desire for sales drives this action-oriented, opportunity-driven stage. No one spends much attention on paperwork, controls, systems, and protocols. The founder works 16 hours a day, six or seven days a week, trying to do it all himself.

3. Toddler phase, which is a phase of rapid growth. Sales is still king. The founder believes they are doing everything right at this point because he sees everything as an opportunity, which often sows disaster. They prefer to organize the business by people rather than function. The founder still makes all the decisions.

4. Adolescence, in which the company adopts a new pattern. The founders hire a Chief Operating Officer (COO), but find it difficult to hand over that passion. Conflicts between the old and the new (the COO and his supporters) hamper operations. People have too much conflict and too little time for customers. The company's picture is temporarily compromised.

5. In its prime, the company establishes a balance between control and flexibility according to the new vision. There is a combination of discipline and innovation. New businesses are sprouting in the organization and it offers the opportunity to start a new life cycle respectively.

6. Stabilization, stable: This is the first aging stage of the life cycle. At this point, the company usually has a stable market share and is well organized. People tend to be conservative, internal networks are increasingly important, and there are more good old boys.

7. aristocracy: basic characteristics such as money often spent on control systems, welfare measures and general equipment; pay attention to the way of doing things; pay attention to the dress and title; lack of innovation; adhere to the tradition.

8. Bureaucratic early: the main behavioral characteristics of like to pursue the responsibility for the problem; internal struggle is intense, but the customer is ignored; paranoia binds the enterprise, and so on.

9. Bureaucratic period, success in the company is not how to satisfy the customer, but to look at its political maneuvering. Thick protocol manuals, tons of paperwork, rules, policies, etc. stifle innovation and creativity. When the disease is terminal, it enters death.

10. Death, Death: It can come suddenly or last for years. It can come suddenly, or last for years, when the company is unable to generate the cash it needs, expenses drain any income, and the company finally collapses.