The Adaptation Navigator
A 5-step process for recognizing growth limits, quantifying them, choosing adaptation strategy, executing, and reassessing.
A 5-step process for recognizing growth limits, quantifying them, choosing adaptation strategy, executing, and reassessing. Like organisms adapting to environmental constraints, includes three options: work within the limit (LVMH), expand around the limit (Walmart), or transform past the limit (Microsoft Nadella).
When to Use The Adaptation Navigator
Use when hitting a growth wall - like organisms adapting to environmental limits, this navigator helps you choose whether to specialize within constraints, diversify around them, or evolve past them entirely.
How to Apply
Acknowledge the Limit (Month 1)
Most companies deny limits for years. Honest assessment: Which limit type? How close? Can we delay or must we adapt?
Questions to Ask
- Which wall type are we hitting?
- Are symptoms early or have we already hit the limit?
- Can quick fixes delay, or is fundamental change needed?
Quantify the Limit (Month 1-2)
At current trajectory, when do we hit limit? What happens if we push through? What's the cost of adaptation?
Questions to Ask
- When do we hit the limit at current trajectory?
- What's the consequence of pushing through (collapse, margin compression, brand destruction)?
- What investment, time, and organizational pain does adaptation require?
Choose Adaptation Strategy (Month 2-3)
Three options: A) Work within the limit (accept as natural constraint, like LVMH). B) Expand around the limit (new growth vectors, like Walmart). C) Transform past the limit (new leadership/strategy, like Microsoft).
Outputs
- Selected adaptation option
- Rationale for choice
- Resource allocation plan
Execute Adaptation (Month 3-24)
Option A: Focus on margin expansion, accept 3-5% growth, return cash. Option B: Allocate 40-60% resources to new vectors, maintain core. Option C: New CEO, divest non-core, 70%+ resources to transformation.
Outputs
- Implementation roadmap
- Resource allocation
- Milestones and metrics
Reassess Every 6-12 Months
Is adaptation working? Did we diagnose correctly? Do we need course correction?
Questions to Ask
- Is growth resuming?
- Are margins stabilizing?
- Is culture adapting?
- Did we diagnose the right limit?