Posts from — October 2007

The answer lies in the Greiner Model. The following is  a description about how it works and what it means for everybody in a comapny who wonders why things seem to be stagnant adn don’t move forward.

To begin, it is important to review the background of the founder of the Greiner model, Larry E. Greiner himself. Searching through the Internet (http://www.uwf.edu/mcd/vitae/greiner.shtml) one can summarize professor Greiner’s professional career.

Dr. Larry Greiner is a professor of Management and organization in the Marshall School of Business at the University of Southern California. He is also the Academic Director of the USC Executive MBA program. He holds a D.B.A and M.B.A degrees from HArvard Business School, adn a BA form the University of Kansas.

Black& White International (2005) claims that:“All businesses move through phases as they grow - like a child moving through to adulthood it is an incremental process and subject to a multitude of ‘crisis’! (crisis literally translated from Chinese means - dangerous opportunity). The inability to recognize the Phase in which a business is in and manage through the crisis is probably the single most important reason why businesses fail. Each phase calls for a different approach. Sometimes strong leadership other times a more consultative approach. Some phases require more systems and procedures others more cooperation between staff. Many founders run the business in exactly the same way it started, ending up with a big small company rather than a small big company.”  (blackwhite-international, 2005)
 

The Star Group and Mardon Century Experts, Inc (mardon-y2k, year) supports the argument of a structured growth by stating that Larry Greiner’s  1972 Havard Business Review article, “Evolution and Revolution as Organizations Grow”,  is as relevant today as it was originally. His article outlined the stages, management crisis, and general solutions that a company goes through from its inception to maturity. In the 1972 timeframe, most companies were growing for two to three years, and then decaying for one to two years. The transition times between each of the Greiner growth phases were lengthy and, in most cases, orderly. Being nearly thirty years old, the Greiner’s model might seem irrelevant today. Technology has altered the business world since 1972 and as a result of this, companies such as INTERNET and E-Commerce, will move through the phases in a much shorter time than they would have done back then. What is still true though, is that a company moves through the five phases regardless of time frames. The problems and solutions still tend to change in-line with Greiner’s model as the number of employees, customers, and sales volume increase. What is needed today is the ability to move to the mature, centerless organization model in the shortest time.

Figure 1

Stage I: Creativity

For the first phase called Creativity, Greiner (1998) points out 4 main characteristics:

      The founders are usually technically or entrepreneurially oriented.

      Communication is frequent and informal.

      Long hours of work are rewarded with modest salaries and the promise of ownership benefits.

      Decisions and motivations are highly sensitive to market feedback

Stage II: Direction

The second stage in Greiner’s model is characterized by the following characteristics:

      Functional organizational structure.

      Different departments are designed.

      Formal communication results as hierarchy and employees increase.

      Increased efficiency.

      Systems need to be set up for inventory control, accounting, and order processing

Stage III: Delegation

      Divisional structures -The successful application of a decentralized organizational structure.

      Greater empowerment of managers -Greater responsibility given to lower management.

      Profit centers and bonuses are used to motivate employees.

      Diversification of products.

Stage IV: Coordination

      Formation of product groups: Strategic Business Units, which are decentralized units grouped together.

      Each group is treated like an investment center.

      Staff members are hired to initiate company-wide control programs.

      Stock options and company wide profit sharing are used to motivate employees.

      Capital allocation decisions are carefully reviewed and analyzed.

      Growth of the headquarters needed to review initiatives of the line managers.

Stage V: Collaboration

      Matrix structure to handle the right teams for the right problems.

      Social control and self-discipline replace formal control.

      Formal control systems are simplified.

      Conferences are held weekly.

      Rewards are geared for team performance.

Stage VI: Networked

      Emphasis on the market vs. hierarchy.

      Alliances for learning, and access to complementary resources.

      Company may choose between keeping activities in house and outsourcing.

       Identification of core competencies.

Axel Meierhoefer, President AMC LLC 

For most people when they think about energy they think about power outlets and cables. In some cases they realize that there is other energy when they walk across a cheap carpet and then touch a door handle only to be shocked by the static energy their shoes collected form the plastic carpet.

Lately we hear a lot about climate change and energy conservation. We read about renewable energy and energy consumption. Very little is heard about life energy, unless you count some of the TV series that make us believe there is life after death, or some resemblance of it – like the new series “Pushing Daisies”. 

I am writing today in some way to put a quick phrase into your minds that is reflecting back to the movie “The Secret”. This movie and the associated movement which has formed in the last few years talks mainly about the law of attraction. It is argued that all things are connected with the universe and therefore interact with each other. I believe that is true. 

What is not always clear is that our thoughts are energy. This can be measured through brain function. The reaction to our thoughts are measurable with polygraphs. What I am focusing on today is the fact that energy has a certain power level (amplitude) and a certain frequency. Some of you may have heard about the human aura. The Heart Math Institute in

 If it is try that thoughts are energy with a certain amplitude and frequency, it begins to make sense why we are drawn to some people we don’t even know or just met or not interested in others. All of us probably recall cases where we meet a person and immediately get the feeling that something is wrong or weird about him or her.

New research claims that this is a sign that the frequency of the energy that surrounds us and emanates from our heart is not in harmony with this person. At the same time we get to know someone and almost instantly feel drawn to him or her. That’s when the energy is in harmony. Another term often used is “resonance”.  For the leaders among you, Richard Boyartzis has written a great book called “Resonant Leadership”. If you don’t want to dig that deep, try to remember this: 

“What you think about is what you bring about in your life. Focus your energy on what you want to achieve and what it takes to get there in harmony”! 

Axel Meierhoefer, President AMC LLC

In continuance of the last few blogs, I like to shed some light on what can actually make a difference in your life. I am not a psychologist but have been working as a coach and educator for a long time. In addition I held and hold executive level positions and have a lot of experience working with people in small, medium, and large groups and organizations. What I find fascinating is the simplicity with which things often resolve or problems can be eliminated. That is not only true when it comes to a process, but also when it comes to behaviors. In coaching I often inquire about the things people have done to overcome the issue or problem they are facing. Frequently it is the cause for the coaching in the first place.  I ask people to start telling me exactly what they like to achieve, what the problem is and how it came about. It’s is not unusual for them to tell me: “We have tried everything and nothing really worked”. Going a little deeper it often becomes obvious that a number of real action steps are needed to overcome the blockade, barrier, or hurdle. Most people actually know what these steps could and should be. On the other hand they are very quick to explain why they haven’t done or taken them yet. The bottom line we should all be aware of is: 

Your life will not change when you know what to do. Your life will change when you do what you know! 

Admittedly this requires some reflection and the help of a coach is a good idea. Still, in many cases, after some reflection and maybe some exchange with colleagues, the steps required to overcome a problem and really resolve it at the root or cause point is no longer unknown. We have been conditioned to identify the obstacles, rather then the opportunities. The latter are the stepping stones to solutions and success. Focusing on them will actually lead to change – for ourselves and those we lead. 

Axel Meierhoefer, President AMC LLC

One of the issues many individuals face when they are in an established, recurring rhythm is the realization that things seem to stand still. The work starts at the same time every day. The weekly meetings are on the same day each week. The calls to the partners and clients around the globe are pretty much at the same time and often revolve around the same issues. Projects change but the work needed to complete them is repetitive.

Once, or in some cases, twice a year, the performance review is the point in time to reflect and find out if what you have done has put you in a place that allows for advancement, or at least a raise. One of the questions that will be answered in that process is:

• Did you achieve the goals we have said since the last review?

If things went half way they always do, that is probably answered with a resounding YES!

Next comes the question: