Tica procs of ening emai of tre hare tg ‘hough Where people Silibas they wi 6 lec te and emai nie Ths ion Hind of hah Chapter Six Transition, Development, and Renewal Pople products, marke ven rece, have lf-yel—birth, growth, ‘maturit,old age, and death At evry ifeelepanage «peal pater of Ibhavior emerges... As the organization pases from one pha of iif 0 ‘the est, dive roles are emphasized and the dient role combinations that real produce diferent organizational behaviors... The fife] ‘model enables an organisation oe the problems i will fe as it rows verte, arthermore, it... prensa famework for preribing the treatments roe bly ob five depending on the fee stage ofthe organi Testa Abra, “Oncanrzariona Passasts” “The idea tha organizations and societies have life eyles has been around 2 Jong time When we say thae General Motors is “lder” than Incl, we mean ‘more than thac ie was established longee ago. We talk about Europe as the Old World and America as the New World, and again, we mean more than chronology. A start-up biotech company exists in che pat ofthe organizational lifetime that we think of is its childhood’; we tall about an organization ora sociesy going through an “adolescent” phase; and everyone has a pretty good idea what we mean when we tall about a “mature” business or one that sap proaching “the end of its life” “The organizational lifecycle also provides an imporeant way to under stand some of the larger significance of many specific transitions, An ending, that launches a tanstion may be traumatic, not ast Because ofthe particular set of circumstances surrounding it, but because it winds up an important chapter of the organization’ life. And the dificulty cha an organization has launching «new beginning may come less ftom the new situation that has co ‘Transition, Development, and Renewal bbe managed than from the fact chat the new beginning represents a whole new life stage for the organization and a new and unfamiliar identi. To understand transition from this perspective ic is helpful to have a map ofthe organization life cycle that is comparable tothe human development theories cae clarfy che path an individual follows through human childhood, adolescence, and adulthood. Without such a map, a teenager’ life would look like a crazy set of purely personal problems that just happened to occur at the nd of childhood. just asthe term “adolescence” helps us vo understand what is ealy going om ina young person's life, othe diferent segments ofthe orga- ational life cycle an help organizational development (OD) specialists, and the leaders with whom they consult, ro understand noc oly why the organiza- tion is encountering certain kinds of problems when ie does, but also what they need to do about them. Ironically, what OD professionals cll organizational “development” has ‘very lle to do with the organization's movement theough his life cycle. In- stead, it usally involves various kinds of organizational “improvements” Beteer communication, wider participation in decisionmaking, and ales au thortarian style of leadership ate typi OD goals, and none of them isa de selopmental suc in the sense we ae talking about.» This is nor just a quibble bout definition: the flute of the Field of organizational development 10 deal with real “developmental” issues has left people confused about the largce significance of transition, which i that itis the eransformative process by which an organization—or a pare of i, anything from a project team ro an international divsion—becomes more complex and better adapeed (0 is ‘The Seven Stages of Organizational Life ‘Shakespeare wrote about the "Seven Ages of Man.” Here ate seven comparable stages of onganizational life The point is not that these seven stages and their names are God-given re aliis that represene fixed times in an organization’ lif. You could come up with alist of sc or weve stages and give them very diferent names, and you might have usc as useful a map. Ihave used this particular one for moe chan twenty years, and I ind ie very helpful in working with organizations in transi tion. Try ie out in your own work, and see fit docs clarify things. Thea rat bls (he fc that wheneer ‘here ica res ‘conde hiking Conder cha ag Sera Poser Cate, Age ldo ares ‘ety cy. Timor on in a smccnion of Jue is,n Manacine Traxsrrions Figure 6.1. The organizational life eee. 1. Dreaming the Dream ‘The fist sage isthe cme ofimagining and planning, when the organization se tle more than an dea inthe min of the founders. This isthe ime when che main actives are ariculting the Dream and trying vo gee people wo joi nb join in bringing ie into physical exinence and to contibue money tthe ask of realizing i Alot of {ime i spent sting around people offices and living rooms, brainstorming end azzuing There mayor may not bea demonstrable “produc” yet, forthe oan ‘ation ils "in utero” The Dream ls unis given up—and many decane ‘never grow beyond this ise phase—or uni ic is born a Venture 2. Launching the Venture ‘This dime is the organization infancy and childhood. Birth has taken place, the Venture is “ou there,” people may even be starting o buy the products If they are, the Venture wll be growing—pethaps very rapidly. Some veneares Transition, Development, and Renewal ‘nd up serving large numbers ofeustomers even before they move on to thet next phase. They may be raking in money. What makes them “venture is not that they are not yet succesful, bur chat they ae doing whatever they ae do- ing by the seat of thei pants at this stage. There ae no formal systems yer—no hiring policies or pay scales, no fixed way of doing things. The organization ‘may actually be litle more than a bunch of people sharing a letethead and a checking account, ‘The people who thrive inthis phase of che organization’ life cycle are ‘od at improvising. Many of those people (they'l be called “old-timers” one day) subsequently look back on chese days with affection —"Wasit chat fin back when we all did everything and no one knew what the rules were?” People may have tides for che sake of the busines ards, bu the tees mean ite tle, and they may sill be living off their savings while they try to attract enough capital o takeoff ‘Some Venues do realy takeoff (Apple Computer was a $1 Bilin a year company before it lef the Venture phase), while thers move forward much ‘more slowiy In either ease, you can go only so far by “making it up as you go before che database is a mes, the computers dant network, and people ae an- sty because there is no logic to who's pid how much, Before these problems sink you, you need to Get Organized, 3. Getting Organized ‘To some people this stage fel like a step backward, since many ofthe ways to bring onder to a chaotic situation force you to slow down and do things in some sandardized way. For people who've been toting around a pocketful of the business cards that people give them on sles calls, working outa elable ‘way to ge the names into a contact management program and learning to use the program to follow up regularly on sles contacts may fe like the fst sep ‘oward “bureaucracy.” But che company has come ro the point where the nat- ‘ral energy ofthe founders is no longer enough to ensure continued good re sults. The frantic efforts oF a handful of people need o be replaced by 2 more predictable set of acvties by a growing numberof people This is the time when roles sat to become mote specialized and more formally defined. Ic isthe time when financial conttols are established, when ‘employment policies are spelled out, when company publications become ‘more than fund-raising efforts. New kinds of people are hired, people who nManacnxe Transtrions hhave actually already done what you'e asking chem ro do now. The hiting process changes as experience starts to become more important—though the ‘old-timers may feel cha such people are the catiers of something dangerous and alien to the wonderful, homegrown, “pare-ofthe-faily” quality that characterizes a Venture. Getting Organized isn't easy, and a few companies and insticuions run aground in the process. But most of them survive and ‘come out of this phase with the nev structures, practices, ystems, agree- ‘ments, and habits that they need to take thie places inthe world of“grown- up" onganizations. When tha happens, the organization enters the next phase ofits life, 4. Making Ie ‘This isthe point when the organizations “adulthood” begins. From this point ‘0, che organization has what ic needs vo be a significant Factor in its market ‘An organization that is successfully Making Ie can expand and grow more comple fora very long time without ever leaving this stage. But this is the Point at which ic begins vo reap che rewards oft succesful extly development in the Form of financial success, workforce groweh, an expanding product line, and an increasing reputation for whatever it does. Ie may fae serious (even daunting) competition, but i is now established in its market. It has sold foothold and the basis for continuing expansion, There can be many subchap- ‘ers to ths time in the organization’ life as growth leads to problems, which ‘ecessiate changes, which lead to further groweh. But through eal, the org nization’ fundamental nature continues. (rit continues until the kinds of successes chat i achieves begin to seem less attractive for its leaders than does the intangible “institutional” quality ‘hat some of its older competitors ofthe fimous organizations in other feds have. People start to feel that these other, more mature organizations have “Something that we dont." They have more significance, more importance, ‘more clas. Ofien this feling of lack ges attached ro tangible things “An org nization of our importance needs a bigger headquarters building... «corpo rate jet... a logo with a more ‘classic’ look"? Thie dissatisfaction isnot like ‘the ear signals chat ic was time to move to the nexe phase, That is, it does ‘0t signity thatthe oll way has reached the imieof is usefulness or that is ‘no longer working, The disatisfaction is more a matter of syle than of sub- stance, but is no less compelling for that. Ie isa Feling that ie iste for the ‘organization co take is place as not just a succesful organization in is fed but as one ofthe Big Boys—ae an Institution Trunition, Development, and Renewal 5. Becoming an Institution ‘This shift is subde bur profound: the emphasis moves from doing o being, from the results thatthe organization achieves to the external impresion that it ‘makes, The organizational imperative shi from that of aking and staking out ‘exitry to occupying ic, People alk more and more about how things ought to bbe done in "an organization lke this” and about what is appropriate oan orga- nization chat occupies a place lke this one. The shift maybe so subtle as to pass almost unnoticed, but new hies start being chosen les fr thee talent and mo tivation and more for how they will ft in with “us” Reputation is something thatthe organization has—ics no longer being ened, Pople forget that, until very recently, they were struggling to exablich themselves. Before long, there comes to bea timeless quality to this phase, a sense of having arrived and a loss of concera about moving on. Like the Making It phase, this phase can last avery long time, And during most ofthat time there isle talk about further development. fow organizations—such as [BM— succeed in launching a renewal efor fom this phase, and others (Hele Packard comes to mind) try to do so. Buc if nothing is done to deflect the nat- ural course of development, the Institution starts to clos in on itself and lose its vial connection with che word 6. Closing In ‘This phase often grows almose imperceptibly out ofthe selFsatsfaction that so ‘often marks instcutional life In an earlier time, when external competition was ‘noc as sharp in Some fields ax i is today (banking, for instance), this inward ‘uring could produce a rather attractive “aristocratic” slizaton of effort. The profesional cultures of some felds—medicine and education are xamples— serve as built-in justifications for Closing In when the organization ges to this point in is lifecycle, If che organization isa governmental body that doesit ned to achieve suces in dhe marketplace, che result is ikely co be an increas ingly unresponsive bureaucracy. If ts markee is competitive, however-—and what markets are nor competitive today?—the result is dficule o sustain. Ee ployes forget the customers and focus on intemal mattets in a way that can seem almost perverse; they argue about rules and starus while the whole oper tion is slowly collapsing. Whatever the external situation is and however ‘quickly che organization is undermined, the Closing In phase matks the loss of the vital tension berween the organization and its environment. Although ircan bbe kep alive for some time bya “life-support system” of extraordinary assets of a monopolistic postion, the natural and final outcome of closing in is— Woe imide age, tempat reali the ie and ape of is ‘ark youth invariably ‘devs bina Each tenyear ofa ment if Ir ou runes ‘wm hopes, aieFoe wana igs ay stb ating ill Ive change -Maxacine TRANsrri0Ns 7. Dying Unlike invidal fr whom dying is an erent that cn be pinned vo specie situation and dats, organizations tend to come to the end of thei ies in ways that make the it of death es obvious, They ge acid, pices of them ate split off and sol, ant becomes harder and hander eo sy ust when “the xg nization” ceased to exis. At this tage, ganizations may go into Chapter 1 bankruptcy and then remege to function ina bre burst of energy ikea dy ing sar before darknes overs them, Even if the operate fora ime, with skeleton sain lite ofcs ort a warchouse somewhere athe ede ofthe iy they come soner ola to the poin whee the actives and he deny thac once were that organization no longer exist Tey have reached the end of the lie ole ‘The Role of Transition in the Organizational Life Cycle Transitions are the dynamic interludes beoween one ofthe seven stages of orge nizational life and che nee. Theit funetion i o close out one phate, reorient and renew people in that ime we ae calling the neutral zone, and carry people into che new way of doing and being tha is che beginning ofthe nex stage. A single transition may not be enough to bing about the complete transform tion ofthe organization and the eoriemtaton ofits peoples there may instead be string of transitions each of which carries che organization a step further along the path of its development. These mult-cansicion twenings can take years finish. But however long they take, they make sense to people only in the context ofthe organization’ development. And eransitions will need co rake sense 0 people, for otherwise people will resist them and make i fr harder forthe organization to grove a it must. ‘What is called “innovation” usualy eepresents a now Dream. Mini-mills, which reprocess scrap into new steel, began as such a dream. Existing steel companies held fst co the more expensive and dfficule process of making the ‘metal directly out of ore, so for the dream ro survive, ithad todo so outside of| existing organizations. The same thing happened with the dream of using transistors in radios instead of vacuum eubes. The big Ametican electronics companies thar were successfl using vacuum suber sefused to embrace the nev cechnology, and chat dream was left tothe Japanese to nurture. Looking at each ofthese cases as simply “innovation” underestimates the challenge they Transition, Development, and Renewal faced. What innovations champions are actually doing is creating & new orga ization, and todo tha they must go back wo che start ofthe ie cycle, What ‘we all ‘an innovation" is relly new Dream. The organizational word is all of leaders with big dreams, bur to conver Dreams into Ventures, leaders have o go through a transition: many of they are not ready to do chat. They have wo let goof the perfec ideal oF the eon, les vision chat the Dream represented and begin the hard work and the com promises that it cakes to launch the Venture. Some who lec themselves be pilled into that tansition—oen with grave misgvings—never manage i emerge fiom i. Years later they reminisce ineffecually about “the days when, swe sit around Chali office and talked about che whiz-bang new computey [or the knockout taining program or the world-class consulting fem] that ws could create” They remain wholeheartedly committed to the Dream, but they have found a dazen reasons why they eannot and should not go ehrough the «edi that will be necessary if they are ro make the transition into the secu age of organizational if, cutning the Dream ino the Venture [Not everyone finds the taniion fr cul of course for Forcunately there are people who are nota interested in the Dream a they ae in creating an actual organization based upon it They miy ‘1 relly fel comfortable, in at, with che saked idea. They much prefer have an office and a phone, an ad in the paper, and an actual produce to de the Dream to the Vensue 0 dil liver toa rel live customer. They are ready to tartan actual company, The Laws of Organizational Development ven at this early point inthe organizational lif cycle, the Fist Law of Orgs rational Development is evident: thse whe were mont at hone with themes sary activities and arrangement of one phate ae the ones who are the mas likely experience the rubrequent phase as a severe prsanal serback They wil talk abo i as a “strategic misake,” as “dumb,” “unnecessary,” and “too expensive They will ry to debate ie om any other vem they can eink of, but what sey ae relly saying scar the transition i Forcing them tole goof what they find most meaningful about the undertaking. And those who are well lated anf adjusted tothe Ventuce will say the same things aboue the nex stage, Getting, ‘Organined, ln each ofthese cass, people who do not want to go though 4 transition will object tothe change that caused i m Mov iar whch "0 bt eos “meBy ne maz Be ro Of fned oe in fe ‘aed ht ep is he mo iia to mabe ‘apart thon fut, ont ve, te ‘ould piers ene ‘heft and mere ‘he pasion Manacine Trasstrions ‘The Venture sage was exemplified by Hewlett-Packard in the late 1930s, by Apple Computer in the eaty 1980s, by AOL in the 1990s, and by thou, sands of lesser endeavors in beeween, The organization docs fine for a while in a litral or gurative garage with 2 handful of people who ae caught up inthe foundes enthusiasm. Roles and routines ate vague, and the ony ching that -maters isto get problems solved whenever and wherever they present them selves. Oh, yes and the other rule: the worst mistake i to miss an opportunity, ‘The Venture stage demands entrepreneurial hustle. How things are done doesn matter much, for in the cisis-driven atmosphere of most ventures re re commitment, the ability co intrest others in the undertaking, and 2 Pragmatic exible approach ate more important than careful plans and tested systems Although cher ini likly co be much hierarchy in the Venture stage, there is alo not much doubt about who has the power. The vals are those of the founders, and this personalities define the syle ofthe whole organiza There is no formal decisionmaking process. The founders decide--or ell someone ele to decide. The kind of people who cluster around such Founders tend oe comfortable wth someone else elling the shots, andthe ae ily ‘0 admire and idealze the founders, Loyalyis personal As noted earlier, a Venture can last fora lng time. But as it grows the pope who are bese ited to ts needs are likely to become somewhat ambives lent about its sucess, Th sucesis what they have ben tying to ceaes and icvaldates ther effors. But success leads to growth—and especialy to inceas ing complexy—thar cannot be contained within and rationalized by the old forms and the old outlook. As the Venture becomes less and les able man ‘ge is own succes and Getting Organized becomes more and more obvignay ecesty, we encounter the Second Law of Organizational Development, she succes outcome of ey phase of organizational deelopment ries is dot y ‘eating challenges that ts not equipped to handle The sequence of Dream-o-Ventue-o-Genting Organized isthe growth atten coded into the very DNA of organizational if, but an understanding ofthe transitions chat che sequence requires isnot. What you ind in 4 young onganization that is trying to gee organied is chaos. Mose of what mae the ‘original core group of employee valuable tothe Veneure makes them dete ‘mental to the proces of Getting Organized. The founder may be one of those asses-ture-labiliy. The disorganized creativity now blocks plans to bring ou commercially viable product. And the founders inuiive way of elon ig opportunities where and when they arse—which, he keeps reminding Transition, Development, and Renewal yous uel al enh ga gi ik Inet now a hg: handicap the manger ea wha te now sang toh thy could minal the founder So wept the Thi La of OrunizatoalDewopment: nay i can anton, hig Bathe oanication neo th ing th or asf Dvr hat span pec when you el cha you oephings th people ecu, ye of management o he eu aro Aa pwn pasa pg the yeoman thle pany ret td no youre thr you dort eed my ls ayer The orpnizaton hs ‘oun’ me you sy? Wel I hint tthe th tha you have no gate no in ay re ae ech anf ae enindrs of the Fourth Lae of Organizational Develop rent when thoi pif, bl in it gnats depp tl ninons pod ping on Teterible mae hein coli at these din prot at yt eying e del wth ae a orp. toms of th anand teal ang on people, sch ube ae ‘ery drape, ou may sid making the won yeu dda, Jeon a Ont Dvn of ihe ile deagh Mat agent mae «sin ben (inet rere oee lens dace dato nto raion Neer growth yeoman bu che condos thr dpe avec ore by Jor widancof he anand indheend th waragn l heaen dey evens othe onan Theres thst might lla deveopmenal npr tatdes company an otto though the ase othe ist al a the oa fatal le Bur ae an ognon hes pel that poi gs ‘hang: AU inthe ae ess ht Becoming an Inston i thing ‘more than the next step onward and upward. Bur gradually people sat ro no- Sh fm i bcming mr pn iC cess vo bea Way ge though vo hers and begin oboe ay fo demonstrate an scl and manne Pepe pow es and es iy ey with those who ned to knot and orl ‘hough channel sts that involve though chane’—and to compan when eters do nox. Eon Sci ann iteniy se peeve dott oe ding ngs tzuualy wl hip to “bring everyone om bear Inthe inna phase of The important ing thas tobe eet any scrife what sear for wh we eal bena6 Maxactne TRANSITIONS ‘own practices and the sanctiy oftheir values that chey cad up generating the very problems that initiate the transition eo the next phase of organizational life: Closing In. “Typically the crises cha bring instiutionality co an end and initiate the transition to Closing In ate external threats to maker positon or financial stability, brought on (be ie noted) by the behaviors that are the downside of institutionality. Under these external challenge, the institutional concern for rules and policy becomes an obsession with showing tha everything has been done properly and chat expecting anything other than the unhappy ‘outcome that actually occurred isin itself improper, The emphasis on fol- lowing the proper channels wens the organization into a warcen of organics tional tunnels into which request disappear and fom which results and an- swers never emerge. “Most ofthe organizations we cll bureaucracies are in this phase of their life cyte, bur actually there are bureaucratic elements in any complex under: taking char is past the Geetng Organized stage. So itis important to remember thac the mos telling signs of being Closed In are not just that routine squeezes ‘ut creativity and even efciency—though these are actual ucomes, The real hallmark of Closing la is chat the organization sal itself off from effective ‘communication with its environment and becomes preoccupied with its own inner workings to the point whete operations are ritualized into sctet and magical acs Lec meilustate the behavior ofa Closed In organization withthe story of hhow the U.S. Navy handled the idea of “continuousaim fring” a century ago.? Around 1900 an American naval ofcer named Sims discovered that, British silrs had developed a way to compensate for che rll ofa ship and to hold steady che barel ofa shipboard cannon that would otherwise be tiling up and down with the action ofthe waves. He was able to demonstrate that British warships, using the new sytem, were dozens of times more accurate than theie American counterparts, He showed roo that instead of having to time the fi 1g £0 moments of relative stability berween rolls, British naval fzunners could aim and fire continuously. ‘Sims sene off his findings tothe U.S. Bureau of Ordinance and the US. Bureau of Navigation, and he waited. And waited. Ie was only after he began circulating his reports through unofical channels, in 2 fshion chat his super 1 fel co be “improper” that he even received a reply. Which was esentially 1. Our equipment is as good a that ofthe British, the ference must be in the training ofthe gunners 2. ‘The taining of gunners isnot the responsibilty of the bureau you have contacted but of the officers ofthe ships in question. |, ‘Therefore, and mos important, “continuous-aim fring is impossible emonsration of “improptiny.” Sims Ina final and completly shocking demons a broke through the evasions and denial by communicating diecly with Presi- dene Theodore Rooscrel. TR recalled Sims from the unofficial exe in China to wich he ad bee anid by the avy top bas and appointed hi inspector ‘tearger practice, post in which he was abl o demonstrate che fetveness the new techniques, The naval historian Eking Morison described he results, Io rests conducted thee years before Sims took over the gunnery pos, 7 (had) fired ive minutes each at Sve ships ofthe North Atlantic Squadron (had fi 1 lighthip hulk at the conventional ange of 1,50 yards just under & tile. After 25 nines of banging away, evo hits ad been made onthe vis ofthe elderly wel. Six years later (ie thice yeas inco the new Sims sate) one naval gunner made 15 hts in one minute at a eaget 75125 fet atthe same range: half af chem hic ina bullseye 50 inches square! This is more than simply “one of those ssf esac co change Is an example of te normal behavior that one Binds in an organization in the {Closed In phase ofits existence, Organizational Renewal and the developmental course of organizational ie not only or tance to innovation but mis- ct ny pte oe ad the aa rn the mtn, What mich ee teen Rec cmt arg oe penal te ey oh you is a ‘Transition, Development, and Renewal 87 Thar no grt imei fof eed ore tmsome god 1.B.sHsowefame Ufone at ne gong 0b nfs "han hat one ba er, 88 Mawacine Teanstrions ‘he organization ad eal init life eycle—i ier in its ie cycle—isin fac wired sizational life eyele. What you have to do is choos, Path of Renewal—as shown in this figure ight inc the orga ‘not Closing fa, but the Figure 6.2 Organizational renewal. sn nes sing tou ly ve wo doe be ih pu make fio san he pros of eptictionl enrltay Fre ok onal mune seis 4p eh reno rg such choice. Leaders who wold go down hs path mst areal sarge at ya ding and the xu ay of eran sons fen Geneal Fle the US Avram Somatic Cl Hi US. Arya stow a on ecand nizations (well on thee way o Dying) can in fice Asthe figure suggests, renewal lays involves ind senda ys involves finding ways co recapture and porate the energy ofthe fist three phases of the organivational fe ue |. Redreaming the Dream: Renewal muse begin with Redreaming the Dream ‘on which the organization is based. The new Dream might be the ides of becoming service business (IBM) i busines (IBM) or reinventing the ides of leadership (che Transition, Development and Renewal 9% US. Army). Ie mightinvolve getting into entirely new busines areas or sin- ply redefining the organization’ approach to existing ones. But in some sig- rifeant way, organizational renewal always involves geting a new central idea around which to build the organization activites and sructres. 2 Recapturing the Venture Sprit: Next, the organization must Recaptue the ‘Venture Spi hat style was natural tothe Young and justlaunched orga nization, but now iis locked away in the past. This canbe done wich the hep of new roles and structures (which propely belong tothe third step of renewal). But che Venture Spice is also more likey co be revived when a ‘new cultural emphasis and syle of leadership ate encouraged, usualy with the help of «new leadership development initiative. Anyone who would Jead a reneval effort needs to behave lke the founder of a new Venture— breaking down the walls berween diferent functions, encouraging looser and faster moving decisionmaking proces, and creating much close ink ages to customers 13. Getting Reorganized: Renewal must alto eevsic che Getting, Organized stage by emodeling che policies, oles, and struccures of the organization to more nearly approximate those of young, organization, This time, of ‘course, you ae approaching Getting Organized from the other sie, a8 i were, recovering the elements of successful organization rather than devel ping them fom scratch, Sometimes this requires that you break up large tanits into smaller ones and treat the small units as litle start-ups-within- the-company. You may need eo reinvent the compensation system so that more of people’ pay is tied directly tothe results they achieve. You will probably need to move toa new and less qualfication-bound kind of hi- ing sacrificing certifications and formal experience for clear evidence that 1 job candidate can do the work thatthe organization currently needs to be done, Needless to say, enewal pus any organization into a far-reaching state of Noahingine deoray teansicon. People who have grown used the practices and clue ofan Lsti- sh ye hou tation will have to lee go of expectations and assumptions that have been re= red for some time—expectations and assumptions, member, that were natural to that phase and instrumental in geting the results thar phase was de Signed ro generate, These people are noe flakes and slackers. Until dings took an unexpected turn jus escent, they were the organization brightest and bes.90 Manacine Transitions ‘hace wy asin lia, and why represent sin ano spe Ieisa adden nd complete reveal he ecco the reaniaton hasbeen flowing ce snes ouding, Tha oer he sur acest if he ranzation urn aay om the at ine tenia cline, fc hat fat dos noe ak the necesy ending any se no eope I is imporane or ltd comprehend the npc of eh thea ting tached ool het anesanng dat cel So sccal Mind them w the psn anos tha wl be neesey vo nae things tr ut as intend alo inert for che HR sod OD secang ‘ho advise the lars cgi hat wason manages mas eb ino he very of npn tena ere And iia important fr the adie to mak te hihi pow uo “developmen” contes and repent s way help thee ‘ation move dong the atu path of sic ev iene one that dcson and go back ak a sh egg with» fal oe inv Awe have saps del of called oneal deel bas nothing whasoser do wih dopant busily acne fing mechanical problem, Mecha thing af oe, fo nouns your cars acting aang the mechani dot sy that he apes ae fing hugh hs orale fen ve ery withthe divers" Bu an onanzaton may inde Be og teh peas foreach ofthe delopmental pha prsens employes sd ln ido izabl cllenges. And the tansions between the pues pee pele with all oF he dif that send leng 150. getting dhrough the neuteal zone, and making 4 new beginning. (Choosing the Path of Renewal The nail kof orion dolpen ike other onic eles fold”—which is what “d ‘ ¥ e-velop-ment” originally meant—out of an initial seed-dream as surely as an oak unfolds out of an acorn The frst four stages represent “growth” in the postive meaning of that term. An organization chat ees to skip one of them is headed for troubles ax an organization tha refuses to move on fro re _ ron from one tage into the next one. But the fifth stage—Becoming an Insicucion—is different. Ke feels ike a seep for, ward to most peopl, although some may complain thatthe customer i war. ‘Transition, Development, and Renewal ing to get overlooked and decisions are starting to take roo long, But in time the downside of the institutional phase begins to cause more serious problems Icis then that farsighted leaders, with an instinctive sense of where things are headed, stare ro think about whar i would tke 1 revitalize the organization These leaders should start by asking themselves these the transition based questions 1 Wie fr ow oo ener an hepa mn Motch ono holm fg ng ne eh te wy bad nite vt ne cee eer teat dice shart rpm's (go Ween nding tx poe wy can cn ai hemes Wher py ay eee ee and enh ey Tene mp epee ngs ee he Pat enw” lg “Es flune samc at gun il moe dove sa damp near omc cori iy cng tpg eon 2. How will we spend our time in the neutral zone? The impatient leader is Tikely to wane to Redream the Dream and Recapeue the Venture Spirit and ge the renewal-generating organizational infastructue in place and ‘working fomeorou! (Why wait when so much is iding on the outcome?) But you cat skip this "rime in the wilderness” That neutal zone wilder ress was where Moseds people discovered their renewal, remember? It fine to ger started with changes right away but from the start you need 10 think of this 8 along, complex process you are tackling, The transition is going o take months, athe last, and if the renewal involves large, com= plex organization, il take years before ifs complete. And most of the time will be spent in the neutral ne, so get comfortable there. How can ‘you make others more comfortable dhere? What are the temporary rules tnd structures and resources that will make people’ time in the neutral tone less anxiety-producing and more productive? Ac the very las, people ate going to have co undersand why they ae in chs crany place and how they can gt through it. (Remember he Four P? See pp. 60-69} 3, What is this new beginning gong to rogure ofa ana oforers in he orga cation? The sooner you start embodying the behaviors and actudes that x Tai mom eee 1 se ‘han opal Ard tol nd gonna if fede2 Only growth form ai HE ace mont Manacsne Teansirions fhe nw being he sono inh ongization leery nee. But emer in your commen vos eg spekto where people ano nto whee ouwant toed thy nel ou help not inating the enon you ne ec sat to weach, bin ang the nen stp inthe renee ey Ba themes in Bese of your ig change What Kind norco willy hel people doap the new aude bceron heal ecu ifehebeiningiowone The wansion that mak th beginning and endings ofthe sage of oe ‘psn if ae not limited vo corporations snd nen tes an gore the lnes and developmental paths of componce: use win tatiations. Anew rgonl ofc in x gopipieal ses who a oe meting busines oppor bins ws someatcs Dram, Nee pre desl breaktugh roca begin ass eam, don siole ee ‘witha firmer competion new eel ines ture The orgnatoa ieee, wih tnd te cea these undertakings. They ar dees kinds of opvaional ence but se begin and develop in xy theme wy Lede need ee sand ths and “lading” neo be cone whe hoses hn fen hep ome pa fan one mol tas ae of ne atthe top to eae slong ie dovopmencloa ‘hough preicabe quence fonda pa nn” ‘ra new governance stu the seven phases we have described inthe moving Conclusion Transition is more chan just the human side of cha An side of change, ces through whch people go when a change occurs or the way people raen themselves to do things a new way. Ici also the experince people have when an organization is moving from one stage ofits development tothe nexe Often at such times no specific ch specific change has occurred to connect the tans peopl know sha things fet : eranaa the psychological pro “feel ferent” around the onginzation. As with the coming of a new season, the weather of everyay activity may slip back and Forth for awhile, and you may be unsure whether the new season is real and, But in a ine while che early signals ten into unmiseakable signs, ‘everyone can recognize that a significant change sat hand. Transition, Development and Renewal So i is with the end of one of the stages ofthe organizational life eee. There’ seldom any big. publicly vsble change-event ro serve at a marker— jst a gradual end to “the way we used 0 do things.” Under the pressure of ‘ew demands, thing simply stare to take on anew shape. Looking back, you will probably be abl ro say just when and how things changed. With che help ‘ofthe material in this chapter, youl lo be able to say why change occured “Time makes many things clear. Executive teams I have worked with can ofen in hindsight, lay outa clear chronology of the stages of ther organization's de- velopment and the events that triggered the transition from one stage the next But in the moment these same people found it very difcule co describe ‘exactly what was happening, "The same ambiguity is usually presen in the cate of renewal. "Do we need it now? Have we reached the poine where we are really ‘closing it?” That is ‘why leaders need to lear all chac they can about organizational development. [eis heir easlero answer those questions—and todo so in the absence of defin itive evidence, Is their ask to make alls on developmental issues—and al ‘most always, ro do so onthe basis of incomplete data. Unfortunately, thet fo litmus test for whether an organization needs to be renewed, but it does help a great deal ro know at what stage in the organizational life gle ate rnewal is most likely to be needed and easiest ro cary off. It helps to know the hallmarks ofthat developmental sage and to know that the transition that 0 cuts at that point is disturbing to people. And ie helps enormously ro know how co manage the transition in a way that will help people move through the three phases of transition without undue distess. Then they will undersand wy they fel uncomfortable and wort take cheir frustrations out on the “st pid change” thac is happening a the company Transition and Renewals A Checist Yes No Do I unders _ ul the seven stages of the organizational lifecycle and how moving from one of them to the next puts an organs (Can Tidemify where the organization I workin (or some ther or ganization [nov well isin ts own eyle of developmen? (Can I distinguish berwcen che deals of my organization’ curent situation and its present stage of development? %4 Manactne Traxsrrions Can I identify the original Dream that represented the fis stage of my organization’ lifecycle? Can I explain the characteristics of che Vencure developmental stage and how they ultimately ead tothe demise of tha tage? Do I understand the difference berween everyday efforts to do things ina more organized way and the developmental sage called esting Organized? (Can [explain the new concems and atiudes that develop as an “organization moves from Making Ito Becoming an Insticuion? Do I understand why Becoming an Institution represents 2 “mo- rent of ruth” fr an organization—a time when it must make a critical choice that will determine whether the organization sur (Can [ explain this statement: “Ther is relly nothing ‘develop. mental’ about most ‘organizational developmenc. Ie’ really just organizational ‘eps, __ Do I know the three transiton-based questions to ask whenever 1 am tying to plan how the organization can move through one of the transformative times between one developmental phase and the next? Alita, which deen wo be bn append ogi in Organizational 2. Pans of his chapter appeared a “Tuning Pisin the Organizational Lie Cyc” in my ninng Orgel non, book hat wa ial plied n 198 by Dow aay ad ino saa fem Wl Beg 8 A information. One prt of th caper appeared (pain Developmen” in Voth oral of te Bay Aree Ongena De =e Transition, Development, and Renewal 5. Foran dab f his gunn, mye "Whats Developmental Akous Oxi onl Developmen” ee nate). {Thee “aga daw on Alin’ ting, bu sey have been reshaped by mo des of mp seh the sve ten Hi, "A chi ing ongniaron whe | war wr S.A one making np rine ch pnt might dei sade = ig mae impesive boardroom wih 2 Fp ipl Excyone bean ough, andthe CEO rane ed Head js had ich ble iwc 6 Looking tthe epigaph vot chapter, you wil thar Adis es the ports of lavundig he fee oles.» [end diferent oguiationl bev” that wil Be re ‘font by these phan inthe onto fe we. He i aking about he ita “Mame tht onion ping o mabe, 0 the mewn tai gingo have 0B ‘etal ng Tha ry import of coe, but our concen hr cet This story sonnei Eng Moron, Cte at Se: Cant oer New Te Engng end Sac 1950 9s