The so-called Second Diffusion of the Doctrine (Tib., spyi dar) - also known as Sarma (Tib., gsar ma), the period of the "New Translations" - was more complex and varied than the earlier one. This new diffusion is sometimes regarded as having started with the introduction of the Tibetan calendar (first Kalachakra initiation) in the year 946, yet sometimes with the arrival of Atisha (in 1042). Most likely, however, both these events are simply the most visible signposts of the new period, and were preceded by a multitude of less formal, unrecorded yet equally important activities.
Meanwhile, in India, where most of the Tibetan import of ideas came from, Tantra was reaching its greatest dispersion while original (Hinayana) Buddhism in general was already on its way out; its main sphere of influence having moved to Sri Lanka and Southeast Asia. No wonder then that this new diffusion was even more of a mixture than the two previous ones. The teachings reaching Tibet now ranged from strictly celibate monasticism to purely philosophical speculation to shamanic vision oriented ritual to sex-magical Tantra of both the left and right-handed varieties.
More or less the same variation of impulses coming together in this phase of Tibetan development can be recognized by taking a look at the major players now on the stage:
Although many of the individuals named here did found major monasteries - often starting a slightly different school or lineage of teachings as a result - this was not always done with premeditated intent; it simply turned out that way when viewed by later generations. Especially people such as Tilopa, Niguma or Milarepa are all too easily regarded as "founders" - although they had no such concern nor intent.
Another misconception concerns the motivation of some teachers of this time, not all of who were primarily concerned with the liberation of all beings. Not unlike the presently existing "spiritual market place" in large parts of the (affluent) world, Tibet and all the Himalayas had become something of a market known for its demand of all things Indian - and thus attracted quite a number of those who demanded large sums of gold for transmitting their knowledge; a fact shown all too clearly in the quest for teachings undertaken by the 11th century Khyungpo Naljor.
All in all, this phase in history - mainly the 11th and 12th century - did bring about a crystallization of lineages and the establishment of many schools and sub-schools (Kadampa, Sakya, Shangpa- and Dagpo-Kagyud, Chöd and Shijed), a development that also resulted in the formal establishment of a Nyingma school and a so-called "Reformed Bön".