Innovation Bytes

The metamorphosis model of organizational development describes the organizational life cycle of companies which passes through cycles of growth and decline: Emergence – Growth –Decline – Death The first phase is often entrepreneurial and innovative with a sudden burst of energy capturing a new space in the market. This creative phase is terminated in a leadership crisis. It was Schumpeter who said, ‘It is rare for anyone always to remain an entrepreneur throughout the decades of his active life.’ This cycle then progresses from entrepreneurship to an organization that becomes slow and complacent. By focusing on innovation, you may rescue an organization in the declining phase of the organizational life cycle. Re-innovation or renovation becomes important when an old, traditional company goes into decline. It provides the inflection necessary to leap frog over the down hill phase. Every organization has to prepare for the abandonment of everything it does - Peter Drucker