Innovation in the various stages of organizational development

The metamorphosis model of organizational development, passing through the cycles of growth and decline, describes the organizational life cycle of companies: Emergence-Growth-Decay-Death Focus on innovation, 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. 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 progresses from entrepreneurship to an organization that becomes slow and complacent.