Transition Zones

Transition zones are periods of change a business goes through as it exits one Stage of Growth and enters the next. Transition Zones happen to every business as they move from one Stage into another.

During this period of change, businesses commonly experience a period of chaos where things feel disconcerting and overwhelming. Transition Zone are like rough waters. These periods can be especially perplexing because the organization is often experiencing positive advancement and growth right up to the point the transition begins.

Flood Zones and Wind Tunnels

There are two types of Transition Zones: Flood Zones and Wind Tunnels.

In a Flood Zone the organization is flooded by work and the complexity suddenly becomes overwhelming. Often, the reaction of the leader is to throw more people at the problem. That is rarely the right answer, however, because adding more people just means adding more complexity.

In a Wind Tunnel, the organization finds that what has worked up to this point—processes, methods, tools, structures, etc.—no longer works. Those past approaches need to be blown out and replaced with new approaches that fit the new Stage. This can be unsettling since it can require significant change for the organization. Think of a Wind Tunnel as a period of “Out with the old, in with the new.”

Transition Zones often feel chaotic to an organization because it is a time of transformation, or growth, from one Stage to another. Knowing to expect them can help an organization get through without panicking or retreating.

Transition Zones across the Stages of Growth

Each Transition Zone starts at the end of one Stage and continues through the beginning of the next. For example, in Stage 1, which is 1-10 employees, the organization will enter a Flood Zone around the time they reach eight employees. It will remain in a Flood Zone as the company transitions into Stage 2 until they reach around 12 employees.

At around the 13th employee, the business will have completed the transition and will enter a Functional Zone. A Functional Zone is the period where a business is solidly within a Stage and can have its priorities dictated by the Gates of Focus. For example, in Stage 2 the Functional Zone is from 13 to 17 employees, which is the range of employees between the incoming and outgoing transitions. 

Leadership in a Transition Zone

When in a Transition Zone, the organization needs the leader to emphasize Structure, Clarity, and Focus. These three things will help maintain the confidence of the organization through the inevitable turbulent times, allowing it to navigate the chaos as gracefully as possible. Picture a group white water rafting: when they encounter rapids, the rafting guide barks out warnings and gives clear directions on what everyone needs to do, all the way until calm waters are once again reached. 

A leader can provide Structure by ensuring the team understands their role, setting clear expectations, and demonstrating how to effectively accomplish the work. 

One way a leader can provide Clarity is to forewarn the organization of upcoming Transition Zones. Armed with this knowledge, the rough waters experienced by the organization will not cause so much anxiety; the Transition Zone won’t feel as unexpected or shocking as it otherwise would.

An example of how a leader can provide Focus is by narrowing responsibilities, reducing the number of new initiatives undertaken, and painting a clear picture of what success looks like for each team member.


Transition Zones are a dimension that impacts businesses at every Stage of Growth. Each of the 7 Stages of Growth Guidebooks has an application section for business owners that explains the unique challenges and solutions to navigating that particular transition. Get the guidebook to growth for your business today to learn more about Transition Zones and how they apply to your business!