Adizes Change Management

Adizes Change Management is a method of introducing organizational changes developed by the Adizes Institute in the USA, based on the theory and practice of the corporate lifecycle. Prime is the desired phase in the lifecycle. Is your organization growing or aging? The answer is crucial in determining what actions you need to take to reach Prime. Is there a need for rapid yet controlled growth? Or maybe rejuvenation is required in order to dispense with rigid procedures and processes. Each phase has its own unique yet predictable challenges and problems. The lifecycle is a truly distinctive and predictable model. How an organization is managed is of critical importance to its progress towards success or its rush towards destruction. We help organizations achieve better results and move towards Prime. There are three key differences between organizational therapy and classical organizational consulting.


The first is that we believe that all organizational solutions and all organizational changes must be viewed in the context of lifecycle stages. Simply put, organizational change in organizations shifting from a startup to professional management will be marked by different goals, different degrees of decentralization, and different rewards systems from the change which is necessary in bureaucratized companies. A precise definition of the stage a company is at in the lifecycle – a precise diagnosis – is a necessary step in organizational therapy.

The second difference lies in the method by which organizational therapy is implemented. This approach assumes that there are no set solutions, there are only principles which, together with experience, produce success. Our consultants find solutions by working actively with people from the company, thereby ensuring a high probability of the implementation of the proposed solution. Our goal is not to invent changes, but to make them possible and to implement them together with the client. This requires that we include in the process not only those who are in authority, but also those that will be impacted by our organizational solutions.
Adizes Southeast Europe has been counseling and assisting organizations in Southeast Europe and far beyond for over twenty years. All of our consultants have years of practical experience with companies they have worked in as managers. Additionally, the forty-year experience of the Adizes Institute, the continuing professional development of our people and the implementation of various management concepts provides an excellent basis for solving an organization’s problems.

A typical program based on the Adizes method lasts six months to a year, depending on the size and structure of the company. However, when they reach a certain level of development, they need help reaching the next developmental step. A large number of clients return to us year after year, seeking support in overcoming increasingly complex challenges. We are proud of our successful partnerships, some of which, in varying levels of intensity, have lasted for over ten years.

The third difference assumes the coordination of all phases in such a way that the results of the diagnosis can be used in team problem-solving and in the company’s mission. The results of the diagnosis and mission form the basis for the structure. The mission and structure form the basis for the accountability system, while all previous phases provide inputs for the rewards system. This connection forms the basis for the beginning of successful solutions as well as for regular verification and enforcement.

As a result of all of this we can avoid situations where one person never gets any sleep, but rather at least fifteen people sleep one hour less!

Characteristics of growing and ageing phases

Areas in which ACM is implemented

Syndag is a detailed synergetic diagnosis of an organization. It is synergetic because it is performed by a team which includes key people who contribute relevant information from various positions within the organization. The diagnosis involves an analysis and structure of the company and the processes it uses in order to identify and perform its mission. The diagnostic workshop helps the company discover opportunities to improve its organization and determine where it is in the corporate lifecycle, and then provides specific steps that the company must take in order to return to or continue its path toward Prime. It is assumed that this phase of therapy will birth a desire to make the necessary changes, and the company must clearly demonstrate that it is prepared to firmly commit to executing them.
Many of the problems identified by the Syndag are recurring or long-established. These are not problems that individuals can immediately correct, because if they were then they would have been resolved already. In order for these difficult problems to be solved, usually various functions and various individuals need to work together, and for a lot of organizations this level of cooperation does not come easily.


Managers and other employees who work well individually need to learn effective teamwork and problem-solving skills. During this phase teams perform and receive instructions on how to solve problems assigned to them, and do so in such a way as to simultaneously meet the four objectives – problem-solving, team-building, personal style development, and mastery of cognitive management skills.

The next assumption is that we know where we are going, that is, where we want the company to go in the next three years. This implies that we have a clear MISSION for the company with appropriate POLICIES, OVERALL OBJECTIVES and STRATEGIES. Defining the mission involves identifying markets and customers for the company to target with its services, analyzing the company’s strengths and weaknesses in the spheres of marketing, production and distribution in comparison with the competition, and projecting the future environment, both inner and outward, and its likely impact on the company.
Organizational structures should facilitate the achievement of the objectives defined in the company’s mission statement. This phase, one of the most complex in the entire program, should ensure the inclusion of profit logic and the separation of short-term and long-term functions within the company. Hierarchical structures of responsibility form the “skeleton” of any organization. Creation of a hierarchical structure begins with the appointment of units responsible for income and expenses, i.e., units responsible for profit. In accordance with the organization’s profit logic we assign other units to work for them, which can serve as internal profit centers, services or facilities centers and cost centers.
The goal of introducing an accountability system is to offer full support to decentralization into profit, cost, and service units. It is meant to complement the existing accounting system, not replace it. It is not just a reporting system, and it focuses on the informational needs of the manager for management. It enables the organization to find an acceptable way of assigning all expenditures to those who control them. From an organizational standpoint it makes results completely transparent to both the organizational unit and the management. Clients are supplied with PT&RS software (Profit Tracking and Responsibility  System) for profits monitoring and business planning, in such a way that they can monitor each organizational unit individually and collectively.
To implement this phase, all previous phases must be completed – here we deliberately stress the importance of the proper sequence. A rewards system should encourage employees to behave in accordance with the mission, policies, objectives and strategies of the company, respecting both their own and others’ positions and roles, while accepting full personal responsibility for the consequences of their decisions and the commitments they have made. Rewarding employees is directly related to their performance, and their performance is directly related to the company’s performance.

Practical Examples

A Lack of Entrepreneurial Spirit

The company’s diagnosis was Premature Aging, which means that there was a lack of entrepreneurial spirit in the company. This was especially evident in the conduct of the operating units, which were organized by type of construction. The directors of the units operated them like classic production lines. They waited for someone to bring them work…

How to Rapidly Expand to Five Countries

A very successful IT distributor got the opportunity from its principal to expand to five more countries as a result of its excellent work. This was a chance that had to be taken advantage of quickly, however the company was not ready to take this step in terms of its organization.

Our diagnostic revealed that the company was very healthy and was located somewhere between Go-go and Adolescence in its lifecycle. The five owners worked in the company and there were no pathological problems. It is common for a company to at first be organized in terms of products, and this was the case here as well, however it was impossible to continue with this structure. The company needed to be reborn…



If you are interested in Adizes Change Management, we will be happy to answer your questions and advise you in more detail in this area.