Organizations develop through different stages of management philosophy, employee involvement, customer relationships, and organizational effectiveness.
Understanding where an organization stands is the first step toward improving it.
The following are t four phases of organizational development.

The organization is built around authority and control.
Problems are often hidden rather than corrected. Employees learn that challenging decisions or reporting unfavorable information can have negative consequences.
The result is an organization where authority takes precedence over contribution.

The organization begins recognizing the importance of customers and employees, but control remains central.
However, the philosophy of the customer always being right has limitations.
If a doctor always agreed with the patient, there would be a lot of dead patients!
The lesson is that customer service must be balanced with professional judgment, sound decisions, and organizational effectiveness.

The organization begins recognizing the value of its people and the importance of working together.
The expression "Hey, you're not too bad!" represents a significant change in organizational behavior.
People begin appreciating what other departments contribute.
The organization starts moving beyond individual departmental accomplishments toward shared organizational success.

The organization becomes an integrated, performance-focused system.
The objective is a:
CSQ3 Fundamentals, Optimum, and Metrics are implemented.
FUNDAMENTALS — CHANGE
Significantly improve organizational performance by establishing the foundation for organizational improvement.
OPTIMUM — MANAGE
Establish a system that manages organizational performance.
METRICS — MEASURE
Measure organizational performance, identify opportunities, and support continuous improvement.
The organization becomes focused on delivering value, empowering people, making effective decisions, and continuously improving results.
Move your organization toward Phase Four.
A Flat Organization. Empowered Employees. Focused Management.
Implement CSQ3.
Achieve Organizational Excellence.
Create a Competitive Advantage.
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