Managing Temperature Transitions
A framework for changing corporate operating temperature - from hot to cold (maturing startup) or cold to hot (transforming incumbent) - without killing the organism.
A framework for changing corporate operating temperature - from hot to cold (maturing startup) or cold to hot (transforming incumbent) - without killing the organism. Key insight: fast transitions kill (thermal shock), too-slow transitions lose to competitors (thermal inertia), oscillating transitions destroy culture (thermal oscillation). Gradual, controlled transitions survive.
When to Use Managing Temperature Transitions
Use when business model must fundamentally change (perpetual to subscription), when market conditions require different operating temperature, when transitioning from growth to profitability or vice versa.
How to Apply
Recognition/Preparation Phase (3-6 months)
For cooling: Acknowledge overheating publicly, set new temperature target, communicate timeline. For heating: Build cash reserves, hire growth talent, upgrade infrastructure.
Gradual Transition Phase (6-12 months)
For cooling: Reduce burn rate 10% per quarter, slow hiring from 50%→25%→10%, increase focus from 10→5→3 initiatives. For heating: Launch new initiatives, increase marketing, accelerate hiring, accept margin compression.
Stabilization Phase (6 months)
Achieve target temperature, maintain for 2 quarters to prove model works, adjust if needed.
New Normal Phase (Ongoing)
Operate at new temperature, monitor for drift, maintain discipline.