Strategic Planning with the Growth Phases Framework
Growth Phases is a technique that enables better strategic planning in business.
According to the Growth Phases, model, there are six stages of growth. Each stage requires its own strategies and structures.
- Growth through creativity is the initial phase of a company, characterized by hard work and poor pay. The
company is typically small, relatively unstructured, and highly adaptive. Eventually the company reaches a size that
required additional leadership and management capabilities.
- Growth through direction is characterized by sustained growth, the development of management systems and
- Growth through delegation gives middle management decreased authority and autonomy. Top management intervenes
only when necessary, and reviews are done periodically to manage from a distance.
- Growth through coordination and monitoring constitutes the separation of the company into divisions (e.g.,
product groups), a corporate staff that oversees and monitors critical control structures, and division-level managers with
Profit and Loss accountability. Formalized structures and bureaucracy eventually results in a red-tape crisis.
- Growth through collaboration accounts for decentralization, cross-functional teams, and innovative development.
At this stage the company reaches an internal growth crisis.
- Growth through extra-organizational solutions is a sixth stage added in the 1990's. It describes mergers, and
networks of organizations as an additional path of growth.
Other Strategic Planning Frameworks
- 4P's Marketing Mix
- Seven S (7S) Management Framework
- AIDA - Attention, Interest, Desire, Action - Buying Process
- Ansoff's Matrix - Product-Market Growth Matrix - Expansion Strategy
- BCG Growth-Share Matrix
- Bass Diffusion Model - Product Adoption and Innovation
- Blue Ocean Strategy
- Choice Model for Decision-Making Behavior
- Competitive Advantage
- Core Competence - Collective Learning in the Organization
- Cost-Benefit Analysis
- Delta Model
- ERG (Existence, Relatedness, Growth) Theory of Motivation
- Experience Curve
- Framing Effect on Psychology and Marketing
- GE (McKinsey) Matrix
- Growth Phases
- Predicting Industry Evolution and Change
- OODA Loop - Observe, Orient, Decide, Act
- PDCA (Plan, Do, Check, Act) - The Deming Cycle
- PEST Analysis - Political, Economical, Social, Technological, Environmental, and Legal Factors
- Perceptual Mapping - Brand Marketing
- Porter's Five Forces
- Product and Marketing Positioning
- Product Lifecycle (Industry Lifecycle)
- Root Cause Analysis
- SWOT Analysis - Strengths, Weaknesses, Opportunties, Threats
- Technology Adoption Curve
- Value Chain
- Balanced Scorecard
- Customer Segmentation
- Pricing Strategy & Price Optimization
- Mergers and Acquisitions (M&A)
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