Robert Balentine is Chairman of Balentine and author of First Generation Wealth.
As a business leader, you likely recognize the enduring truth: Change is the only constant. Whether leading a startup, scaling a thriving enterprise or stewarding a mature organization, navigating change is the defining challenge of leadership—many businesses falter not because of external pressures, but because they fail to evolve at critical moments in their growth.
Years ago, I was introduced to the Adizes Organizational Life Cycle model, which maps the evolution of businesses from infancy to prime and, if mismanaged, into inevitable decline. Seeing this framework laid out so clearly resonated with my own experience—both in my own ventures and in advising entrepreneurs and wealth creators.
The challenge for leaders is to recognize where their business stands on this classic curve (first introduced in the 1960s) and to make the necessary adjustments to sustain growth rather than drift into complacency.
The Early Stages: From Infancy To Growth
When we launched my company, it wasn’t with a grand corporate infrastructure—it was a handful of partners working from rented furniture in temporary office space, full of energy, vision and the weight of risk. That’s infancy, and in this stage, businesses are fueled by passion, urgency and often, financial constraints.
As a business moves beyond startup into adolescence, the biggest challenge becomes scaling without losing the entrepreneurial spirit that made it successful in the first place. This is when growing pains set in—when the processes that worked for a smaller team begin to break down. It’s also where leadership teams start to take shape. Some thrive in this transition, while others struggle with the added structure and discipline required to scale.
One of the most valuable lessons to learn in adolescence is that the people who got you there may not be the same ones who can take you to the next level. Leaders must be willing to make tough decisions about talent, ensuring the right people are in place for the future. It’s no time for sentimentality.
The Go-Go Years And Prime: The Temptation Of Complacency
For businesses that successfully navigate adolescence, the next stage is what Adizes calls the “go-go” phase—the fast-growth years, which are filled with opportunity but also the risk of losing focus. Success can be intoxicating, but the moment a company starts to believe it is invincible is the moment it begins to stagnate.
The goal for any business should be to reach—and sustain—what Adizes calls “prime.” Here, the company is established, profitable and well-managed. Sustaining prime requires discipline, reinvestment and continuous improvement.
The most dangerous enemy of a successful business is complacency. Businesses that reach the prime stage can quickly slip into what Adizes calls “aristocracy,” where leaders focus more on protecting the status quo than on creating new opportunities. This can be the beginning of the end.
Avoiding Decline: The Role Of Leadership In Change
I saw this dynamic firsthand at a previous trust. By the time I arrived, the company had been around for over a century and had built a storied reputation. But what I quickly realized once I joined was that the organization was in the aristocracy phase—it was operating as if past success guaranteed future stability. The mindset was, “We’ve been here for 100 years, we’re not going anywhere.”
But of course, things went wrong. The financial crisis exposed weaknesses, and within a few years, the firm was forced to sell. It was a stark reminder that no company is too big, too established or too historic to fail if it stops adapting.
A leader’s job is to ensure that their company stays in prime as long as possible. That means fostering a culture of innovation, reinvesting in talent and ensuring that internal incentives align with long-term sustainability rather than short-term profits. It also means staying clear-eyed about external forces. The competitor that takes you out isn’t always the one you see coming. Like a famous quote attributed to Henry Ford says: “If I asked my customers what they wanted, they probably would’ve said a faster horse.”
One of the ways I aim to codify the culture at my current company is through a focus on the fundamentals, specifically, 30 behaviors we expect our team to exemplify. Culture isn’t something that happens by accident; it must be reinforced daily.
The Key To Managing Change: Communication And Transparency
I think one of the most overlooked aspects of change management is communication. People don’t resist change—they resist the uncertainty that comes with it. When we announced our recent partnership with an external capital partner, we knew the way we communicated the news internally would be just as important as the decision itself.
Instead of a sudden announcement, we introduced the idea gradually, much like letting the air out of a balloon slowly. First, we engaged our partner group, then expanded the conversation to our leadership team, and then to the broader firm. By the time we held our town hall, our employees weren’t hearing about the change for the first time; they had already been brought along on the journey.
When leaders take the time to explain not just what is happening, but why, and—most importantly—how it impacts employees personally, they can create alignment rather than resistance. Along the way, it’s a good idea to solicit input; after all, people can’t resist their own ideas.
Lessons For Leaders
For leaders navigating change, here are three fundamentals:
1. Recognize where your business is on the life cycle curve. Don’t let success lull you into complacency. Said another way, if you’re not growing, you’re dying.
2. Keep reinvesting in your people. The team that got you here may not be the team that gets you there. Prioritize talent and culture.
3. Communicate openly and often. People resist change when they feel left in the dark. Bring them along for the journey.
Managing change proactively rather than reactively means staying hungry, staying humble and staying committed to the long-term vision—especially when things are going well. Because if history has taught us anything, it’s that nothing stays the same forever.
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