Framework

Root-to-Shoot Ratio Diagnostic

TL;DR

A diagnostic tool to calculate and assess your organization's balance between visible growth metrics (shoots) and invisible infrastructure capacity (roots).

A diagnostic tool to calculate and assess your organization's balance between visible growth metrics (shoots) and invisible infrastructure capacity (roots). Based on the biological principle that plants allocate 30-60% of energy to roots, this framework helps organizations identify whether they're over-investing in growth at the expense of foundation.

When to Use Root-to-Shoot Ratio Diagnostic

Use quarterly to assess organizational health. Especially critical before major growth initiatives, during fundraising, or when experiencing operational strain despite revenue growth.

How to Apply

1

Quantify Shoot Investment

Calculate last 12 months of visible, external-facing investments

Questions to Ask

  • What was total sales & marketing spend?
  • What was product development spend (new features, not infrastructure)?
  • What were geographic expansion costs?
  • What was brand/PR spend?
  • What were customer acquisition costs?

Outputs

  • Total Shoot Investment figure
2

Quantify Root Investment

Calculate last 12 months of invisible, internal capacity investments

Questions to Ask

  • What was infrastructure/tools/systems spend?
  • What was documentation/knowledge systems investment?
  • What was training & development budget?
  • What was spent on process improvement projects?
  • What was invested in relationship building (non-sales)?
  • What was quality systems/technical debt reduction spend?

Outputs

  • Total Root Investment figure
3

Calculate Ratio

Determine your actual shoot/root percentage split

Outputs

  • Shoot %
  • Root %
4

Compare to Stage Guidelines

Assess ratio against targets for your company stage: Seed (0-2 years): 70/30, Growth (2-7 years): 50/50, Scale (7-15 years): 40/60, Mature (15+ years): 30/70

Outputs

  • Gap analysis
  • Reallocation recommendations
5

Track Over Time

Monitor quarterly trends in root investment

Outputs

  • Trend analysis
  • Stage-appropriate adjustment plan

Root-to-Shoot Ratio Diagnostic Appears in 1 Chapters

Framework introduced in this chapter

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