The Greiner Growth Model by 50Minutes.com

Author:50Minutes.com
Language: eng
Format: epub
Publisher: 50Minutes.com
Published: 2017-03-03T00:00:00+00:00

Delegation phase

The solution to the autonomy crisis leads to the delegation of power from senior management to middle managers. These managers are free to react quickly to opportunities and threats from new products, markets, competitors, technologies, and customer desires and expectations. In this way, the organisation continues to grow.

The people who inject capital do not necessarily run the company themselves. In most cases, they appoint an agent to represent them and ensure the efficient use of their capital.

This delegation may then lead to a control crisis. The chief executive, who wants to continue to solve the fundamental problems of the organisation on their own, finds it difficult to let go. However, the structure of the organisation has become too large for a single leader. Thus, out of pride, many founders unwittingly bring about the downfall of their organisations.

The solution to this crisis requires thoughtful delegation, involving the creation of head of department positions and new offices (departments or subsidiaries). To move forward, it will be necessary to clearly redefine the objectives, tasks and responsibilities of the new leaders and support them in their new assignments.

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