Strategic Management: Formulation and Implementation

Revitalization

Unlike organization development, revitalization is not focused on one specific organizational function (managing people); instead, it focuses on the management of strategy, structure, and behaviour.

There are three basic stages of revitalization:

Contraction
During contraction the organization decreases in size and scope, cutting back on expenses, work force, facilities, and so forth. The basic purpose of contraction is to generate resources that can be used for new initiatives.
Consolidation
During this period the organization learns to live with a leaner, tighter way of doing things.
Expansion
In this stage, expansion, true revitalization occurs. The organization can begin to build on its new base for operations, perhaps entering new markets, gradually expanding production again, adding to its work force as the need arises.

Typically, revitalization efforts involve a new or reoriented strategy, a new or significantly altered organization structure, and new pattern of behaviour among all managers and employees of the organization.