Stress Accumulation Diagnostic
A 90-point diagnostic tool for evaluating whether a business unit should be separated from its parent organization.
A 90-point diagnostic tool for evaluating whether a business unit should be separated from its parent organization. Measures stress across three dimensions: Strategic Fit, Growth Trajectory, and Cultural/Leadership Stress.
When to Use Stress Accumulation Diagnostic
Run quarterly for any business unit that feels 'misaligned' with core. Also use when activist investors pressure for spinoffs, when key talent is leaving a business unit, or when growth rates diverge significantly between units.
How to Apply
Evaluate Strategic Fit (0-30 points)
Assess customer overlap, technology/capability sharing, and competitive moat contribution.
Questions to Ask
- Do core and unit share customers? (10 = 100% overlap, 0 = 0% overlap)
- Do core and unit share technology/capabilities? (10 = fully shared, 0 = completely distinct)
- Does unit strengthen core's competitive moat? (10 = essential, 0 = irrelevant)
Outputs
- Strategic Fit Score (0-30)
Evaluate Growth Trajectory (0-30 points)
Compare unit performance against core on growth rate, profitability, and capital efficiency.
Questions to Ask
- Unit growth rate vs. core growth rate? (10 = unit growing 3×+ faster, 5 = same rate, 0 = unit declining)
- Unit profitability vs. core? (10 = unit more profitable, 5 = same, 0 = unit unprofitable)
- Unit capital efficiency vs. core? (10 = unit requires less capital, 5 = same, 0 = unit requires more capital)
Outputs
- Growth Trajectory Score (0-30)
Evaluate Cultural/Leadership Stress (0-30 points)
Assess leadership satisfaction, talent mobility, and collaboration quality.
Questions to Ask
- Are unit leaders satisfied with autonomy? (0 = frustrated, 10 = satisfied)
- Is talent transferring between core and unit? (10 = frequent, 0 = never)
- Do core/unit leaders collaborate easily? (10 = strong collaboration, 0 = conflict)
Outputs
- Cultural Stress Score (0-30)
Calculate Combined Score and Determine Action
Sum all three dimensions and apply decision thresholds.
Outputs
- 60-90 points: Healthy integration - maintain connection, monitor quarterly
- 30-59 points: Moderate stress - run 90-day deep analysis before deciding
- 0-29 points: High stress - begin controlled calving planning within 30 days