Organizational Development (OD) and its Five Stages.

Organizational development is a crucial and science-based mechanism that helps business management to build their capacity for transformation and increase business performance. Hence, by designing, refining, and enhancing policies, systems, and processes.

Business management consultants geared OD towards organizational effectiveness. It is not about trying something out and seeing what is going to happen, it is an evidence-based, organized procedure. The main goal is to use empirical observations as inputs and to create a formal and regulated mechanism. Therefore, practitioners evaluate hypotheses, whether the findings represent the purpose of the intervention.

OD has a range of business consequences. They can vary between organizations’ nature, but typically include financial results, customer loyalty, dedication to the company, and improved capacity to adapt and refresh the organization.

OD often refers to improvements in policy, function, and/or procedures. This means a business strategy, where we focus overall operational system. This involves within a participatory approach a whole company, one or two sites, or a single department.

Besides, IT management is reinventing how conventional market models operate, producing creative firms with the potential to scale their offerings to a global audience in just a few years.

The Induction of Five Main Stages in Business Management

Business management consultants typically define five phases of organizational development. While there is some agreement among practitioners and those with an interest in organizational development that the five phases referred to bear a multitude of different terminologies.


The formation stage is the point at which usually individuals who have a vision for the business organization management lead the idea of an organization and its activities. The CEO or the global manager has a major influence on the company during its strategic management process.

Early Period

Global management consultants commonly define the early stages of an organization’s life cycle as the storming and youth periods. The early stage of the creation of organization development is chaotic and emerging. This stage usually lasts from three and five years, but there is no clear timeline set for meaningful intervention.

Normalization Period

The third stage of OD may better be called the normalization phase. Organizational practices and protocols become the rule within an organization during the standardization process. Managers distribute roles connected with the activity of the company. These entities have a propensity to behave coherently and as a team at this period of development.

Peak Period

Business management consultants refer to the peak stage as an effective or mature process. This is the level at which the company generally proves to be the most profitable. At this point, the company depends on well-established policies and procedures. In addition, new leaders may begin to grow within an organization during the peak time, where competition between individuals starting to grow, at least to some degree.

Reassessment Period

The last step of OD is reassessment. A systematic re-evaluation happens as an organization hits this level. This requires a study of strategies, processes, and staff. Based on this review, business management consultants expect that there will be different improvements in everything from management to policy and practices to the structure of the company itself.

By recognizing the five steps that usually exist within the growth cycle of an organization, people associated with an organization have a greater sense of fulfilling their assigned tasks. The five phases of organizational growth therefore include a framework through which global management consultants execute successfully short-term and long-term planning.

Streamline Consultancy Is Your Expert Organizational Development Consultant Partner

Streamline Consultancy specializes in business management to help organizations obtain critical bottom-line results. We have 20 years of cumulative experience in management consultancy services, helping in enhancing and growing organizations in different industries.

Take the next step and contact us, if you want to know how we can help your organization succeed.