ELI5: Explain Like I'm 5

Organizational life cycle

When people start a new thing together, like a company or a club, it's like having a new baby. They have to take care of it, help it grow, and make it strong. The same way babies grow up and become kids and then adults, organizations grow and change too.

Organizations have different stages they go through as they grow and change. It's called the organizational life cycle. There are four main stages: start-up, growth, maturity, and decline.

The start-up stage is like the baby stage. It's the beginning of the organization, and everyone is excited and working hard. The people in charge are figuring out what the organization will do and how to do it. They might be making a plan or creating a product.

The growth stage is like the kid stage. The organization has started to get bigger, and more people know about it. They might have more money and more employees. Everyone is working hard to make the organization successful.

The maturity stage is like the adult stage. The organization has become established, and people know about it. They might have a lot of employees or a lot of customers. They have regular income and are making money. They still have goals to meet and things to do, but they are more settled.

The decline stage is like the older adult stage. The organization has gone through all the other stages, and things might not be going as well now. They might be losing money or customers, or they might not be as successful as they used to be. They might have to make changes to survive.

So, just like you grow up from being a baby to an adult, organizations grow and change too. It's important to take care of them at each stage so they can keep growing and stay successful.