Framework

The Root System Test

TL;DR

Component of Regeneration Readiness Assessment that evaluates whether fundamental organizational value (brand equity, customer relationships, core capabilities) survived a crisis.

Component of Regeneration Readiness Assessment that evaluates whether fundamental organizational value (brand equity, customer relationships, core capabilities) survived a crisis.

When to Use The Root System Test

As first step in regeneration assessment. When evaluating distressed acquisition targets. When deciding whether turnaround is feasible.

How to Apply

1

Rate Brand Equity (0-10)

10 = Iconic, trusted brand. 7 = Strong brand, temporarily damaged. 5 = Known brand, trust eroding. 3 = Declining recognition. 0 = Unknown or toxic.

Questions to Ask

  • Do customers still recognize and trust your brand?

Outputs

  • Brand equity score
2

Rate Customer Relationships (0-10)

10 = >90% retained through crisis. 7 = 75-90% retained. 5 = 50-75% retained. 3 = 30-50% retained. 0 = <30% retained.

Questions to Ask

  • Did you retain >70% of customers through the crisis?
  • Are relationships transactional or loyalty-based?

Outputs

  • Customer retention score
3

Rate Core Capabilities (0-10)

10 = Fully intact (key people, IP, processes functional). 7 = Mostly intact. 5 = Partially intact. 3 = Severely damaged. 0 = Lost entirely.

Questions to Ask

  • Do you still have key talent?
  • Is technology/IP protected?
  • Are critical processes functional?

Outputs

  • Capabilities score

The Root System Test Appears in 1 Chapters

Framework introduced in this chapter

Related Mechanisms for The Root System Test

Related Companies for The Root System Test

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