Each stage is defined by a conflict between two forces. This conflict offers a spectrum of results. Failure to resolve the conflict positively results in a break in the cycle. If the conflict is not resolved positively or is resolved by default this makes dealing with the next conflict more difficult.
For example if the survival vs. failure stage does not result in a successful mission statement, dealing with delegation vs. control issues will be impossible. It will require the organization to go back and reevaluate and resolve the survival vs. failure issues.
Survival vs. Failure
This stage determines if the new organization is able to identify and execute the factors necessary to insure the organization's survival.
A positive resolution results in a strong mission statement.
A negative resolution is the failure of the organization.
Delegation vs. Control
As the organization grows the owner(s) or dominant person(s) are no longer able to control all aspects of the organization. The conflict at this stage is between delegating certain aspects of the organization to non-owners or less dominant members of the organization and keeping control of the day-to-day activities.
A positive resolution allows the new leaders / managers to make mistakes within their area of control.
A negative resolution does not allow delegation and the growth of the organization is limited to the ability of the owner(s) or dominant person(s).
Mission vs. Special Interest
As control is delegated to a larger number of leaders / managers the focus of each separate sphere of control narrows. The conflict at this stage is between the special interest of each separate sphere of control and the need to fulfill the mission statement.
A positive resolution requires each separate sphere of control to balance its needs against the mission statement.
A negative resolution allows each sphere of control to set their own agenda independent of the mission statement.
Reevaluation vs. Diminishing Returns
As each sphere of control directs its efforts toward the mission statement efficiency increases until further effort yields little or no results. The conflict at this stage is between the status quo and a reevaluation of success.
A positive resolution results in a redefined mission statement allowing for further development.
A negative resolution allows the organization to slip into complacency.