Company problems at different stages of growth
56 situations that bring management boards to us. Each description covers symptoms, causes that depend on company scale, diagnostic questions, indicators, the method of solving the problem and the first step. Descriptions are tagged with the area, development phase, revenue and headcount range, business model and financial situation in which the problem occurs most often.
Filters: phase, revenue, headcount, model, profitability
There is no description for this combination of filters. The closest matches will appear when you change one of the filters. Contact.
How we classify companies
The filters are based on organisational growth models and on definitions used in the European Union and by analyst firms.
Development stage
The phase names come from L. Greiner's model of organisational growth (Harvard Business Review, 1972, updated 1998): creativity, direction, delegation and coordination. Each phase ends in a management crisis: of leadership, autonomy, control and red tape. We describe the renewal phase based on Greiner's fifth phase (collaboration) and I. Adizes' organisational life cycle model (1988). We use the five-stage model by N. Churchill and V. Lewis (1983) for companies with up to 49 employees.
Annual revenue
The PLN 40m and PLN 200m thresholds roughly correspond to the turnover thresholds in the EU SME definition (EUR 10m for a small and EUR 50m for a medium-sized enterprise). The PLN 200m–1bn range falls in the lower part of the range that Gartner assigns to midsize enterprises (USD 50m–1bn in revenue).
Headcount
The 1–49 and 50–249 employee ranges correspond to the headcount thresholds in the EU SME definition (small enterprise: fewer than 50 employees; medium-sized: fewer than 250).
Business model
Six models in which the causes of the same symptoms differ the most: B2B SaaS, e-commerce and D2C, marketplaces, media, B2B services, and manufacturing and distribution.
Profitability
The financial situation, measured by EBITDA margin, changes priorities: a loss-making company protects cash and payback periods, while a profitable company can fund growth from earnings.
Development phases (Greiner model)
- Creativity phase: the founder runs sales and product, and the company is looking for product-market fit; ends in a crisis of leadership
- Direction phase: rapid growth under central management, first departments and processes; ends in a crisis of autonomy
- Delegation phase: a second line of managers and decisions pushed down the organisation; ends in a crisis of control
- Coordination phase: several business lines, markets or entities, planning and control systems; ends in a crisis of red tape
- Renewal phase: slowing momentum, a change of business model, cross-functional collaboration and new sources of growth
Sources
- Lemur Media: Greiner's growth model (article in the Insights section)
- European Commission: SME definition (threshold overview, BayFOR)
- Gartner Glossary: Midsize Enterprise (MSE)
- N. Churchill, V. Lewis: The Five Stages of Small Business Growth (SSRN)
- L. Greiner: Evolution and Revolution as Organizations Grow (Harvard Business Review)
Book an initial consultation
A 30-minute conversation about your company's situation. After the consultation we send a proposed Diagnostic scope, or let you know that the topic is outside our expertise.
