From Organizational Decline to Organizational Renewal: The Phoenix Syndrome

Although much has been written about how organizations renew themselves, little attention has been given to why they go into decline. Mary Guy’s groundbreaking new study looks at both sides of the issue, first analyzing the symptoms of and reasons for organizational decline, and then exploring the requirements for renewal. Drawing upon her own original research and a detailed examination of case studies in both the public and private sector, Guy takes as her conceptual framework the theories that have informed organizational development research. She traces the decline-followed-by-renewal process, proposing an integrated model of organizational decline that includes certain identifiable stages of health and resilience common to all organizations in turmoil.

Guy’s analytical framework can be effectively used to pinpoint the position of any organization--large or small, public or private, old or new. She explains how people behave in organizations under stress and outlines the enduring characteristics of organizations in the decline and renewal stages. Numerous examples illustrate the actual process of decline and renewal in real-world settings--small businesses, large corporations, hospitals, schools, voluntary agencies, and government agencies, including the Johnson White House during the Vietnam War. An entire chapter is devoted to tracing the path of decline within NASA’s manned space flight program and looking toward its future. Students of organizational development and management theory will find here important new insights into the dynamics of organizational decline and the period of renewed vigor that often follows.

MARY E. GUY is Collins Professor of Public Administration at the Askew School of Public Administration & Policy, Florida State Univerity Her previous works include Professionals in Organizations: Debunking a Myth, as well as articles in publications such as Group and Organization Studies, Hospital and Health Services Administration, and the New England Journal of Human Services.