Framework
The 70% Solution Diagnostic
TL;DR
When evaluating whether to eliminate an apparent inefficiency.
A diagnostic tool for identifying which inefficiencies are ecosystem investments (forests) versus pure waste, based on evolution's optimization for 70-80% efficiency rather than 100%.
When to Use The 70% Solution Diagnostic
When evaluating whether to eliminate an apparent inefficiency. Use before cutting costs, tightening policies, or optimizing systems that may have hidden long-term value.
How to Apply
1
Quantify the Cost
Measure direct and opportunity costs of the inefficiency
Questions to Ask
- What is the direct annual cost?
- What is the opportunity cost?
- What is total annual cost?
Outputs
- Total cost of inefficiency
2
Identify Long-Term Value Created
Determine what the inefficiency enables
Questions to Ask
- Does this build customer trust/loyalty?
- Does this enable operational speed/flexibility?
- Does this support team morale/retention?
- Does this create future optionality?
- Does this strengthen ecosystem health?
Outputs
- List of enabled values
3
Estimate Value at Risk
Calculate what would be lost by eliminating inefficiency
Questions to Ask
- What revenue would be lost?
- What speed would be lost?
- What resilience would be lost?
Outputs
- Total value at risk
4
Calculate Value/Cost Ratio
Compare long-term value to annual cost
Outputs
- Ratio: Value created / Cost of inefficiency
5
Make Decision
Apply decision rules based on ratio
Questions to Ask
- Ratio > 2×: KEEP (ecosystem investment)
- Ratio 0.8-2×: CALIBRATE (adjust to optimal level)
- Ratio < 0.8×: ELIMINATE (pure waste)
Outputs
- Decision: KEEP, CALIBRATE, or ELIMINATE