Framework

Organizational Prescribed Burns

TL;DR

An annual operating rhythm of intentional small disturbances to prevent catastrophic organizational collapse.

An annual operating rhythm of intentional small disturbances to prevent catastrophic organizational collapse. Modeled on forest management prescribed burns that keep fuel loads low.

When to Use Organizational Prescribed Burns

As ongoing organizational hygiene, not just crisis response. When organization has survived regeneration and wants to prevent future crises. As regular discipline during profitable times.

How to Apply

1

Annual Talent Calibration (Q4)

Rank all employees by contribution/potential. Manage out bottom 5-10% (performance-based). Maintains performance culture, prevents standards slipping, stops accumulation of dead weight.

Outputs

  • Bottom performers managed out
  • Performance culture maintained
2

Quarterly Product Portfolio Review

Measure all products: revenue, margin, strategic value, trajectory. Kill bottom 10-15% of portfolio with clear migration path. Maintains focus, concentrates resources on winners, frees innovation capacity.

Outputs

  • Zombie products eliminated
  • Resources concentrated
3

Biennial Organizational Structure Review

Audit organizational layers (should be ≤7 from CEO to front-line). Eliminate redundant roles, consolidate overlapping teams. Maintains decision velocity, prevents bureaucracy calcification.

Outputs

  • Layers reduced
  • Redundancy eliminated
4

Annual Process Audit (Q1)

Identify bureaucratic processes (approvals, meetings, reports nobody reads). Kill 20% of least-valuable processes. Keeps organizational metabolism high, coordination costs low.

Outputs

  • Unnecessary processes eliminated
  • Organizational speed maintained
5

Regular Strategic Review (Every 3-5 Years)

Question fundamental assumptions: business model, target customer, core capabilities. Exit declining niches before forced out by crisis. Maintains strategic flexibility, avoids trapped positions.

Outputs

  • Assumptions stress-tested
  • Strategic flexibility maintained

Organizational Prescribed Burns Appears in 1 Chapters

Framework introduced in this chapter

Related Mechanisms for Organizational Prescribed Burns

Related Companies for Organizational Prescribed Burns

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