Theory of the Business

Biological Parallel

Every species occupies an ecological niche—a "theory of the business" about how to convert environmental resources into survival and reproduction. Darwin's finches evolved different beak shapes based on seed-size theories: small beaks for small seeds, large beaks for tough seeds. When drought shifts seed availability, finches with mismatched theories die while adapted ones thrive. Kodak's theory ("people want physical prints") worked until the environment changed, just as the medium ground finch's theory fails during extreme droughts. Drucker's insight: your theory of the business must match current reality, and reality doesn't wait for you to adapt.