Installing Thermal Windows
A framework for pre-identifying components that can be cut to reduce temperature without damaging core operations.
A framework for pre-identifying components that can be cut to reduce temperature without damaging core operations. Creates a ranked list of 'thermal windows' - products, services, geographies, features that can be shed when overheating occurs. Key insight: companies with pre-identified thermal windows can cool 50% faster than those identifying during crisis.
When to Use Installing Thermal Windows
Use during annual strategic planning, when temperature diagnostic shows risk of overheating, before crisis hits (preparation), or when considering new initiatives (assess their cuttability).
How to Apply
Map All Business Components
Create comprehensive inventory of products (core, adjacent, experimental), services, geographies, customer segments, features, infrastructure, partnerships, marketing channels.
Calculate Thermal Load
For each component measure: direct costs, indirect costs, opportunity costs, revenue contribution, profit contribution.
Classify by Cuttability
Uncuttable Core (>20% revenue, strategic moat); Difficult to Cut (5-20% revenue, 6-month wind-down); Cuttable (<5% revenue, 3-month wind-down); Easily Cuttable (negative/minimal revenue, immediate cessation).
Create Cutting Sequence
Design cascade plan: Level 1 (10% reduction): Easily cuttable. Level 2 (20%): Add cuttable. Level 3 (30%): Add difficult. Level 4 (40%): Restructure core.