Strategic Radiation Triangle
The organizational analog to the biological Radiation Triangle.
The organizational analog to the biological Radiation Triangle. Three ingredients for organizational adaptive radiation: market opportunity (underserved customer needs, emerging technologies, regulatory changes creating new niches), organizational modularity (ability to recombine capabilities into new offerings without rebuilding from scratch), and structural separation (divisions or subsidiaries that operate independently enough to specialize without interference).
When to Use Strategic Radiation Triangle
Use when considering organizational diversification strategy, evaluating conglomerate structure, or diagnosing why diversification efforts are succeeding or failing.
How to Apply
Assess Market Opportunity
Identify underserved segments, emerging technologies, or regulatory changes creating new niches.
Questions to Ask
- Are there underserved customer segments?
- Can you access these niches with existing capabilities?
- Is competition for these niches weak?
- Is the market growing?
Evaluate Organizational Modularity
Assess whether capabilities can be recombined into new offerings.
Questions to Ask
- Do you have modular capabilities with API-like interfaces?
- Do you have standing variation in talent and ideas?
- Can you iterate rapidly on new ventures?
Check Structural Separation Feasibility
Determine whether new ventures can operate independently.
Questions to Ask
- Can you create independent P&Ls and reporting lines?
- Can you prevent resource competition with core business?
- Can you tolerate divergent cultures and practices?