Alex Sander is a new product manager whose drive and talents are attractive to management, but whose intolerant style has alienated employees. This tension is presented against the backdrop of a 360° performance review process. Sander works in the Toiletries Division of Landon Care Products, which has recently been acquired by a European beauty company. Sander is leading the launch of a European skin care product into the U.S. market, which requires working with a multinational product development team. Sander's interactions with peers and direct reports in the case paint a picture of a tough, inflexible high achiever who uses temper as a management tool. At the end of the day, Sander's supervisor Sam Glass will provide Sander with 360° performance feedback-the first time this process has been used at Landon. Sander remains skeptical about the value of the process and feedback, and of a long-term fit with the organization. On the other hand, Glass has a very high personal interest in keeping Sander at the company, but wonders how the organization can best develop and manage this star performer.

The influence of history on an organization is a powerful but often overlooked force. Managers, in their haste to build companies, frequently fail to ask such critical developmental questions as, Where has our organization been? Where is it now? and What do the answers to these questions mean for where it is going? Instead, when confronted with problems, managers fix their gaze outward on the environment and toward the future, as if more precise market projections will provide the organization with a new identity. In this HBR Classic, Larry Greiner (professor of management and organization at the University of Southern California's Marshall School of Business) identifies a series of developmental phases that companies tend to pass through as they grow. He distinguishes the phases by their dominant themes: creativity, direction, delegation, coordination, and collaboration. Each phase begins with a period of evolution, steady growth, and stability, and ends with a revolutionary period of organizational turmoil and change. The critical task for management in each revolutionary period is to find a new set of organizational practices that will become the basis for managing the next period of evolutionary growth. Those new practices eventually outlast their usefulness and lead to another period of revolution. Managers therefore experience the irony of seeing a major solution in one period become a major problem in a later period. Originally published in 1972, the article's argument and insights remain relevant to managers today. Accompanying the original article is a commentary by the author updating his earlier observations.

A study of 318 executives indicates a consensus among executives on the specific characteristics that constitute a participative style, and general agreement that certain participative leadership characteristics produce more effective results. The participative leader prototype that emerged from the study is a sensitive, extroverted and emotive leader who is in close contact with his or her subordinates and is attuned to their needs. The managers in the study emphasized high performance of subordinates as an important part of a participative style.

Many organizations are now adopting a revolutionary attitude toward change. There are a number of approaches: those that rely on unilateral authority, those that share the power, and those that delegate authority. The goal is the same: to get all levels of management psychologically redirected toward solving the problems and challenges of today's business environment.