Succession Stages Model
Framework for diagnosing which succession stage your company or market occupies, then matching strategy accordingly.
Framework for diagnosing which succession stage your company or market occupies, then matching strategy accordingly. Just as ecological succession follows predictable stages (Pioneer → Early → Mid → Climax), business succession follows a similar pattern.
When to Use Succession Stages Model
When determining optimal strategy, resource allocation, team structure, and success metrics based on market maturity. When you're unsure why 'worse' competitors are winning or why your strategy isn't working.
How to Apply
Diagnose Market Stage
Use quantified criteria to identify whether your market is in Pioneer (<5 years, <3 competitors), Early Expansion (5-15 years, 5-20 competitors), Mid-Succession (15-30 years, 3-5 dominant), or Climax (30+ years, 2-3 oligopoly).
Questions to Ask
- How old is your market?
- How many well-funded competitors exist?
- What are typical growth rates?
- What do customers expect as 'standard'?
Diagnose Company Stage
Assess whether your company stage matches your market stage. Misalignment (climax-optimized in pioneer market, or vice versa) is the danger zone.
Questions to Ask
- What is your revenue range?
- What is your growth rate?
- What are your operating margins?
- How is your team structured?
Match Strategy to Stage
Pioneer: Focus on survival, burn capital for speed. Early: Focus on growth, scale over profit. Mid: Balance growth and profit. Climax: Defend position, maximize margins.
Outputs
- Appropriate burn rate
- Correct success metrics
- Right team structure
- Stage-appropriate goals
Identify Succession Trap Warning Signs
Check for: best people leaving, constant reorganization, conflicting metrics, 'worse' products winning, culture blocking change.
Questions to Ask
- Are top performers leaving?
- Do you reorganize every 18-24 months?
- Are you demanding both growth AND profit at transition points?
- Are competitors with 'inferior' products gaining share?