The previous chapter dealt with the issues encountered by growing entrepreneurial organizations as they move through the first four stages of growth: from a new venture (Stage I) to consolidation of an established business (Stage IV). If management has accomplished the developmental tasks described, then on completing Stage IV, the enterprise will have become a professionally managed organization. This chapter continues the discussion of the organizational life cycle and presents a framework for identifying and managing the advanced stages of growth: Stages V to VII.
Some businesses will have the opportunity to grow in size beyond Stage IV, and this growth will present a new set of organizational development problems that are quite different from those during Stages I through IV. This chapter is intended to assist the senior managers of such organizations in planning for the future development of their enterprises by examining the stages of growth that occur beyond Stage IV. It can also help senior managers of organizations that have already reached those stages of growth and are either encountering certain developmental problems or wish to avoid the classic problems at each stage.
We first describe the nature of each of the advanced stages of growth and then examine the key problems and challenges that organizations must confront as they advance to each of them.
Prior to Stage V, the organization's ...