Adizes Corporate Lifecycles Class 6 Slides pDF-CLASS-6-EN-WM

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Leadership Development Programs
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Adizes Methodology for Mastering Change
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Predicting Corporate
Problems - The Lifecycle In
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of Organizations
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USA · Mexico (Monterrey, Guadalajara, Mexico City) · Argentina · Brazil
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Spain · Turkey · Greece · Serbia · Croatia · Slovenia · Poland
Lithuania · Latvia · Ukraine · Belarus · Russia
India · Thailand · Australia

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© Ichak Adizes, Ph.D., 2004 - 2021
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Delivered by
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Ichak Adizes, Ph.D
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Founder,
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Adizes Symbergetic™
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Organizational Therapy and
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Collaborative Leadership
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Methodology.
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Dr. Adizes Virtual Conference
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at Adizes Global Convention, 2019
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Sydney, Australia
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“Adizes is the Darwin of corporate evolution.”
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— Monroe E. Price, Dean, Benjamin N. Cardozo School of Law, Yeshiva
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University
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Session 6
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Predicting Problems -
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The Lifecycle of Organizations
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Adolescence In
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Summary of previous
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classes
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EXPLANATION
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What causes problems to be
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normal, abnormal or critical
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PAEI In
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Behavior vs Function vs Personality

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Organizational Lifecycle
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Adolescence
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PaEi
In
Go-Go
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Paei Infancy (Startup)

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paEi Courtship
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ADOLESCENCE
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What triggers the transition from Go-Go to
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Adolescence usually is a crisis
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The hyper ventilating Go-Go company
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will get into trouble. Eventually:
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Quality control problems
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Clients are abandoning the company
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Franchisees suing the company
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The government suing the company

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Surprise, company is loosing money

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WHY?
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ADOLESCENCE
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Building a high-rise on
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single-home foundations
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Undertaking way over-ambitious projects
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Pushing the envelope
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Founder treating even a public company
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as his private domain.
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Treating investors not as equity owners,
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but as people who gave him a loan.

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WHY?
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The Go-Go Legacy

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Abnormal Problems
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ADOLESCENCE
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The need for order becomes obvious
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The company needs more (A)
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and/or more (I)
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Order, predictability, efficiency
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Organizational procedures adhered to
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Organization sees the leader as the
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source of the problem
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Challenges the leader

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Problems with capi transition

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ADOLESCENCE
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Needed transition:
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From entrepreneurship
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to professional management
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ADOLESCENCE
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capi
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Adolescence pAEi
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Adolescence P
PA
Aei
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capi
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Go-Go PaEi
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Infancy Paei
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Courtship paEi
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capi
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Transition conflicts:
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Culture
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Leadership style
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ADOLESCENCE
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Company identity getting separated
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from Founder’s identity
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Organization is reborn with life force
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apart from the Founder.
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ADOLESCENCE
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“When do you stop making love to a gorilla?”
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Who is managing whom?
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“Is Tesla managing Elon Musk, or is
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Elon Musk managing Tesla?”

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Organizational Lifecycle
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PAei / pAEi Adolescence
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PaEi
In
Go-Go
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paEi Courtship
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ADOLESCENCE
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Decision Making
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PROCESS
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STRUCTURED UNSTRUCTURED
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PROCESS
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PRIORITY
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PACE
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RESULTS
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FAST
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LOCAL GLOBAL
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FOCUS
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ADOLESCENCE
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capi
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Adolescence pAEi
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PAei
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Adolescence
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capi
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Go-Go PaEi s
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Infancy Paei
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Courtship paEi
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capi
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Abnormal
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Adolescence
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pAEi
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PaEi
In
Go-Go
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paEi Courtship
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ADOLESCENCE
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Trying to keep high (E) and building (A)
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at the same time
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Abnormal Adolescence
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pAEi
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Mission,
Structure Process People
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Vision +
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Values
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Foggy
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Yo–yo Authority Confusion, Cliques:
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transfer between what is Policies Old + new
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founder and hired

vs Rules vs guard
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professional
Guidelines
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manager
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ABNORMAL Problems
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Founder hates doing (A)
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Founder is first to violate rules/policies he made himself
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Old-timers follow suit.
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Brings in “professional manager” with a (PA) style
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Founder resisting loosing control
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Yo-yo delegation of authority
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Difficulty in changing leadership style

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Conflict between partners or decision-makers

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(E) - (A) conflict

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capi in turmoil
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ADOLESCENCE
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ABNORMAL
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Problems (cont.)
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The (PA) brings his own people
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Divide and rule management
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Old-timers are threatened by loss of special deals and
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transfer of power to the “new guys”
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They hate the changes
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Old-timers complain to the Founder about the
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(A) manager
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Revolving door of (A) or (E) people

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Loosing (I)
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ADOLESCENCE
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ABNORMAL Problems (cont.)
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Paralysis from endless power shifts
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Board of Directors, some are a fig leaf - legacy of Go-Go
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Difficulties to institutionalize capi
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Temporary loss of vision
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Inconsistent, conflicting goals, paralysis
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(E) (A) conflict

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ADOLESCENCE
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ABNORMAL
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Problems (cont.)
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Fight for control destroys trust and respect between
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Founder, professional managers, Board and investors.
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Love-hate relationship between the organization
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and the entrepreneurial leader
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Leader surrounded by fifth column people (traitors in
hiding) In
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Paranoia
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1,
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No MT&R
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Loss of (I)
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ADOLESCENCE
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CRITICAL
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Problems
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No energy
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Low morale
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Apathy
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Revenue and profits decline

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ADOLESCENCE
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The (A) aligns the Board against the Founder
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Transition:
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From absolute monarchy
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to a republic
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CRITICAL
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Systemic (PAEI) Problems
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If the Founder looses control,
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The Founder gets fired, or leaves,
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The company goes into premature Aging
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Excessive and expensive controls
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Cutting fat and muscle

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1,
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Rising profits, flat or declining sales

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©
Too much (A)

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ADOLESCENCE
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DIVORCE
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Professional manager bring in
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their team to implement
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processes, rules, policies,
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procedures, systems and
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structures.
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pAEi
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• Founder (E) and Professional
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Premature
Late Adolescence Aging

Manager (A) in conflict
itu
Divorce
PAei E Polarized company
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Early Adolescence •
In
Unfulfilled
PaEi s Entrepreneur
• Loss of focus
PøEø
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Go-Go • High turnover
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Founder’s or
Family Trap
Too much internal conflict, no
A
Paei •
Pøøø energy to compete in the
1,
Infancy
02
Infant
Mortality market
️2
paEi øøEø • Divorce

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Courtship Affair
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ADOLESCENCE
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“Sculley was hired by Jobs to run Apple when the
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company got too big to manage and the two of them
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became inseparable friends - the visionary kid and the
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experienced manager. But Sculley and Jobs were too
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different to stick together for more than a few years… The
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loss to Apple was much larger than the departure of the
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company’s founder. It faltered as its vision faded. When
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Jobs walked out, Apple began turning into just another
big computer company.”
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— From The end of Innocence at Apple, by Al Fasoldt
Copyright 1989, The Syracuse Newspapers

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ADOLESCENCE
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“(Steve) took it as a personal attack, started attacking
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Sculley, in which, you know, backed himself into a corner.
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Because he was sure that the board would support him
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and not Sculley… Apple never recovered from losing Steve;
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Steve was the heart and soul and driving force; it would be
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quite a different place today; they lost their soul.”
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— Andy Hertzfeld, a key member of the original Apple Macintosh development team
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ADOLESCENCE
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CRITICAL Problems (cont.)
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If the Founder still in control, the (A)s get fired and
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the Founder tries to implant (A) by himself:
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Structure the company around people,
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Job descriptions around people’s capabilities,
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Premature profit sharing scheme,
itu
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Profits responsibility delegated without capability
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to manage it,
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Bonuses for individual achievement while organization loosing

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money,
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Succession by bloodline not by competence

02
️2
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The company falls into the Founder’s/Family Trap

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Bad (A)
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GO-GO
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FOUNDER’S / FAMILY TRAP
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From shirtless to shirtless, in
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ll
three generations. (English)
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LC
pAEi
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te
Late Adolescence
From peasant shoes to
itu
peasant shoes, in three
st
generations. (Chinese)
PaEi
In
PøEø
s
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Go-Go
di
Founder’s or
Family Trap
A
Paei Pøøø Father businessman, son

1,
Infancy playboy, grandson beggar.

02
Infant
Mortality
(Mexican)
️2
paEi øøEø
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Courtship Affair
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HOMEWORK
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Identify a company at ABNORMAL
LC
ADOLESCENCE stage, founder lost control,
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company went into Premature Aging. What
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was normal and what abnormal, and why, and
itu
st
what happened to this company (15 minutes).
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Choose the best case
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Present the case to the large group
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(2 minutes)
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Breakout rooms instructions
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1. Leave the Zoom Webinar Session open
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2. Join the Google Meet link that is placed on the chat
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box (on Zoom)
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3. When participants join the Google Meet, you will be
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redirected automatically to your room (the group will
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be based on your language)
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4. The time for discussion will be setup for 15min
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5. When the 15 minutes are over, the breakout room will
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be ending, and you will have to come back to the
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Zoom Webinar Session
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6. In case you lose connection, the Zoom Webinar

02
Session will remain open the whole time so you can

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rejoin again
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Healthy Transition
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in Adolescence
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In
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Adi
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In
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QUESTIONS?
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For more from
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ADIZES
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Leadership Training https://adizes.training/
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Bookstore https://adizesbooks.com
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(Class slides and ebooks available for sale)
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Institute Website https://adizes.com
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TopLeaF videos https://adizesbooks.page.link/vod

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Dr. Adizes Blog https://ichakadizes.com

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©
Dr. Adizes YouTube Channel

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https://www.youtube.com/c/drichakadizes-channel
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d.

USA · Mexico (Monterrey, Guadalajara, Mexico City) · Argentina · Brazil

Spain · Turkey · Greece · Serbia · Croatia · Slovenia · Poland

Lithuania · Latvia · Ukraine · Belarus · Russia

India · Thailand · Australia

Dr. Adizes Virtual Conference

at Adizes Global Convention, 2019

Behavior vs Function vs Personality

Paei Infancy (Startup)

The government suing the company

Surprise, company is loosing money

but as people who gave him a loan.

The Go-Go Legacy

© Ichak Adizes, Ph.D., 2004 - 2021

Challenges the leader

Problems with capi transition

Elon Musk managing Tesla?”

Paei Infancy (Startup)

Paei Infancy (Startup)

founder and hired

Difficulty in changing leadership style

Conflict between partners or decision-makers

(E) - (A) conflict

Revolving door of (A) or (E) people

(E) (A) conflict

Revenue and profits decline

Cutting fat and muscle

Rising profits, flat or declining sales

Too much (A)

Late Adolescence Aging

paEi øøEø • Divorce

Copyright 1989, The Syracuse Newspapers

Bonuses for individual achievement while organization loosing

Succession by bloodline not by competence

The company falls into the Founder’s/Family Trap

Paei Pøøø Father businessman, son

Infancy playboy, grandson beggar.

Present the case to the large group

Zoom Webinar Session

6. In case you lose connection, the Zoom Webinar

Session will remain open the whole time so you can

© Ichak Adizes, Ph.D., 2004 - 2021

TopLeaF videos https://adizesbooks.page.link/vod

Dr. Adizes Blog https://ichakadizes.com

Dr. Adizes YouTube Channel

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