Hibernation Protocol
A three-phase operational playbook for executing strategic hibernation: Entry (4 weeks), Dormancy (ongoing), and Emergence.
A three-phase operational playbook for executing strategic hibernation: Entry (4 weeks), Dormancy (ongoing), and Emergence. Includes week-by-week checklists, stakeholder communication templates, success criteria, and common failure modes.
When to Use Hibernation Protocol
Use after deciding to hibernate (scoring 50+ on Hibernation Decision Scorecard). Use as operational guide during hibernation execution. Use stakeholder templates for board, employee, customer, and vendor communications.
How to Apply
Phase 1: Entry (Weeks 1-4)
Swift entry within 4 weeks. Week 1: Board approval, reserve audit, communication prep. Week 2: All-hands announcement, stakeholder comms, Tier 1 cuts. Week 3: Deep cuts, contract renegotiations, credit line drawdown. Week 4: Final cuts, dormancy entry.
Questions to Ask
- Is board approval documented?
- Have reserves been verified?
- Are stakeholder communications prepared?
- Has monthly burn reduced 60-80%?
- Are essential employees retained and committed?
Outputs
- Reduced burn rate (60-80% reduction)
- Verified reserves at 3x+ requirement
- Essential team retained
- Dormancy operations manual live
Phase 2: Dormancy (Ongoing)
Operate at minimum burn. Maintain only essential functions. Track burn weekly. Monitor emergence signals across market, financial, and operational indicators.
Questions to Ask
- Is burn rate stable and predictable?
- Are monthly stakeholder updates happening?
- Are emergence indicators being tracked?
- Have at least 3 market indicators turned positive?
- Have at least 3 financial indicators turned positive?
Outputs
- Weekly burn tracking
- Monthly investor updates
- Emergence signal monitoring dashboard
Phase 3: Emergence
Gradual restart, not flip-switch. Rehire in stages. Resume projects in priority order. Ramp burn gradually. Test demand before committing capital.
Questions to Ask
- Do reserves exceed emergence cost by 50%+ buffer?
- Is core team (75%+) committed to restart?
- Is customer demand verified (not assumed)?
- Is supply chain ready?
- Has revenue shown 3+ months growth trajectory?
Outputs
- Revenue returned to sustainable level
- Burn rate below revenue
- Reserves rebuilding