Framework

Hibernation Decision Scorecard

TL;DR

A quantitative scoring system (0-100 points) to rigorously evaluate hibernation viability across five dimensions.

A quantitative scoring system (0-100 points) to rigorously evaluate hibernation viability across five dimensions. Provides clear decision thresholds: 75-100 = Hibernate, 50-74 = Conditional, 25-49 = Pivot Recommended, 0-24 = Exit.

When to Use Hibernation Decision Scorecard

Use after initial qualitative assessment suggests hibernation may be viable. Use when presenting hibernation decision to board or investors. Use to identify specific weak areas that need strengthening before entering hibernation.

How to Apply

1

Score Temporary vs. Permanent Scarcity (25 points max)

Rate 5 questions on 1-5 scale: evidence scarcity will end, similar companies affected, historical recovery patterns, customer demand status, structural vs. temporary cause.

Questions to Ask

  • Do you have clear evidence the scarcity will end?
  • Are similar companies also affected?
  • Has this pattern occurred before and recovered?
  • Do customers still want your solution?
  • Is the scarcity caused by temporary vs. structural factors?

Outputs

  • Step 1 Score: ___/25
2

Score Reserve Adequacy (25 points max)

Rate 5 questions: reserves vs. requirement ratio, access to additional capital, calculation accuracy confidence, ability to cut burn rate, asset liquidity.

Questions to Ask

  • Reserves vs. calculated requirement ratio?
  • Access to additional capital?
  • Confidence in reserve calculation accuracy?
  • Ability to cut burn rate quickly?
  • Asset liquidity if needed?

Outputs

  • Step 2 Score: ___/25
3

Score Predictability (20 points max)

Rate 4 questions: duration estimate confidence, recovery signal identifiability, real-time monitoring capability, regulatory predictability.

Questions to Ask

  • Can you estimate duration within +/- 30%?
  • Are recovery signals identifiable?
  • Can you monitor conditions in real-time?
  • Regulatory/policy predictability?

Outputs

  • Step 3 Score: ___/20
4

Score Restart Capability Protection (20 points max)

Rate 4 questions: core team retention, customer patience, technical capability maintenance, supplier/partner availability.

Questions to Ask

  • Can you retain core team?
  • Will customers wait for you?
  • Can you maintain technical capability?
  • Will suppliers/partners be available?

Outputs

  • Step 4 Score: ___/20
5

Score Opportunity Cost (10 points max)

Rate 2 questions: competitor dominance during hibernation, market window closure risk.

Questions to Ask

  • Will competitors dominate during your hibernation?
  • Will market windows close?

Outputs

  • Step 5 Score: ___/10
  • TOTAL SCORE: ___/100

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