One half of all new organizations will close their doors forever after only five years. Those organizations – started with vision, enthusiasm, and hope for the future – will leave employees, clients, and constituents in limbo. Within sixteen years only twenty five percent will still be viable. There are a number of reasons for failure but some result from their own success.
There is a definite cycle in the life of organizations. It is not chronological but a functional cycle. A simplified pattern might include five phases; Initial Structuring, Formal Organization, Maximum Efficiency, Institutionalization, and Disintegration.
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About the Author
William F. Johnson is an award winning author writing primarily in the field of leadership and personal development. His background includes starting and leading three different business entities and he is currently CEO of a non-profit organization. Bill can be reached at www.wfjohn.blogspot.com.
Bill’s book, Disorganize or Bust (Aslan Press), provides an understanding of organizational development, traces some real life organizations through their life cycle, and is provided as a tool for leaders and entrepreneurs to avoid or slow down the institutionalization process. It will be uncomfortable for some whose main desire is a smooth operation, but growth is not smooth.
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