The concept of company life cycles

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This concept of new business was created by Ichak Adizes, a modern Macedonian and American business consultant, a leading specialist in effective process management in business. He explained it in his book “Corporate Life Cycle Management”.

Pragmatic concept

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Adizes believes that every organization has uruguay mobile phone numbers database its own life cycle. It, like you and me, is born, grows, ages and dies. At each stage of the cycle and in the process of transition from one state to another, the company faces specific difficulties or temporary problems, and they must be able to cope with them. Moreover, the organization must learn to avoid unforeseen circumstances.

Adizes lists several stages of the life cycle of an organization. These include courtship, infancy, the stormy period of "giving back", adolescence, flourishing, aging, final decline and death. The book explains how to quickly detect the signs of an aging organization and prevent its decline and death.

PAEI Methodology
This is the second most famous concept of Ichak Adizes, described in his books "The Ideal Manager" and "How to Overcome Management Crises". The PAEI code includes four management styles:

Producer style (P) – focused on specific results;

Administrator style (A) – creation and adherence to clear norms and rules;

entrepreneurial style (E) – aimed at transformation;

Integrator style (I) – focus on creating a cohesive team.

It is impossible for one person to perform all four roles at the same time. The solution: form a team of members with different management styles so that they compensate for each other’s weaknesses. The group must have a leader whose job it is to ensure that no one style becomes dominant. That way, says Adizes, the company will not face a crisis.


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The difference between a mission and a business concept
Your company has a stated mission, but you've learned about another concept called a "statement vision." If the former is the star that guides your company, the latter is the compass. It gives your team a clear sense of where the company is headed (mission) and how to get there (vision).

The concept reinforces the stated mission and is firmly linked to it. It helps to define strategic goals, the achievement of which contributes to the fulfillment of the company's purpose. However, creating a business concept takes time and effort.

A vision is a road map that shows the direction a company is moving and explains how and why the mission will be accomplished to achieve the overall goal.