Phase III: The stage of Consolidation: solid survival and success

Consolidation is a phase in which organizations strive to continue their successes while trying to eradicate the risks involved. The focus is on improving and controlling what already exists. The keyword for the organizational climate is ‘safe’. We usually find a larger staff, who manifest themselves more strongly, and who engage in (and sometimes win) power struggles with line management.

Although phase three organizations are primarily concerned with production, they are also engaged in perfecting their procedures all around – often to the point where the procedure becomes more important than the process or its outcomes. The firm is in danger of becoming arrogant: “Clients should be grateful that they can profit by our services and products.”

Decisions are made based on memo’s, notes and exposé’s, in an attempt to gain perfection and control.

The pitfall for phase three is precisely in the striving for perfection. This leads to inflexibility, and arrogance, which make firms lose contact with the market. Innovation is also problematic, since innovation tends to draw on good market vibes and pleasure in learning or changing. Phase three firms tend to view outside pressures as troublesome.


Phase I: The pioneering stage: high energy, wild growth

Phase II: The stage of Growth: think first, act flexibly

Phase IV: The stage of Decline: keeping up appearances