Monday, March 24, 2008

Distinctive about renewal stage of an organization

Some of the distinct characteristics of renewal stage are
  • Renewal begins after the mature stage, preventing serious decline to rejuvenate the organization.
  • Existing products and service need to run side by side with the new products both compete for scarce resource. Old product, which is a cash cow and new product which is promise of future need to co exist and a delicate balance should be maintained between the old and the new. Old products need to be maintained and supported while developing the new products.
One could ask a question that what happens to an organization after mature stage that an organization needs to go through renewal stage. It is because of Organization's inability to sustain its growth in mature stage, which can be attribute to internal and external factors.

Innovation of new and products and services that obsoletes the existing market players, major economic disaster, ecologic disaster or New competition with deep pockets are some of the external forces which are inhibitors to organization growth.

Departure of key talent or organizational breakdown, obsolete information system, decline in major source of revenue or supplier, outdated equipment are some of the internal forces that prevents the organizational ability to sustain its growth.

Can Organization's be in Mature stage all the time ? In my opinion, they can provided they constantly fine tune all aspects of their organization constantly and be ahead of the curve. For eg for many years GE has been in growth stage and now it is still considered to be one the market leader in several consumer good sector.

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