The Yellowstone Protocol
Named after the 1988 Yellowstone fires that demonstrated how apparent destruction enables renewal through nutrient cycling.
A systematic framework for deliberate organizational decomposition - extracting value from failed projects, obsolete products, and declining businesses to release capital, talent, and capabilities for emerging opportunities. Named after the 1988 Yellowstone fires that demonstrated how apparent destruction enables renewal through nutrient cycling.
When to Use The Yellowstone Protocol
Use when organizations accumulate 'organizational litter' - failed projects, zombie initiatives, obsolete products, declining businesses - that consume resources without delivering value. Apply during portfolio reviews, post-failure analysis, strategic restructuring, or when management attention is fragmented across too many initiatives.
How to Apply
Identify What Should Die
Diagnose which parts of your organization are 'dead' or 'dying' and should be decomposed rather than maintained.
Questions to Ask
- Does this initiative have negative strategic value (consumes more resources than it generates with no path to positive returns)?
- Is there strategic misfit (doesn't align with company direction, capabilities, or customer base)?
- Is this a 'resource zombie' (has budget and staff but no traction, keeps pivoting without progress)?
- Has the project been 'almost ready to launch' for 2+ years?
- Is management spending >20% of time on <10% of the business?
Outputs
- List of initiatives flagged for decomposition
- Diagnosis category for each (negative value, strategic misfit, or zombie)
Inventory Reusable Components
Before killing any initiative, systematically identify which components are reusable 'nutrients' that will feed future growth.
Questions to Ask
- What technology, code, patents, data, or designs have applications beyond this specific product?
- Which talent (specialized skills, leadership, domain expertise) is needed in growing businesses?
- What customer insights, market intelligence, or brand associations could inform other products?
- Which physical assets, contracts, or financial assets can be redeployed?
Outputs
- Component inventory categorized by: Technology/IP, Talent/Capabilities, Customer Insights, Physical/Financial Assets
Extract Maximum Value Before Termination
Don't just shut down - deliberately extract reusable components first through phased approaches.
Questions to Ask
- Can we use a phased shutdown (decision → extraction → wind-down) to preserve value?
- Is there an acquirer who would value these components more than we do?
- Should we open-source technology or spin out the initiative?
- How do we transition customers while maintaining relationships?
Outputs
- Extraction strategy (phased shutdown, strategic sale, or spinout)
- Timeline with extraction milestones
- Customer transition plan
Redistribute Components to Growth Areas
Actively redistribute extracted components to areas of growth - this is organizational nutrient cycling.
Questions to Ask
- Which growing divisions need the talent, technology, or insights from this shutdown?
- Do we have internal talent marketplaces or job matching to facilitate transfers?
- How do we ensure technology and knowledge actually transfer (not just 'available')?
- What retraining programs support employees transitioning to new roles?
Outputs
- Redistribution assignments for all components
- Talent transition plans with retention incentives
- Technology transfer documentation
Institutionalize Continuous Decomposition
Build decomposition into regular organizational rhythms rather than waiting for crisis.
Questions to Ask
- Do we have regular portfolio reviews with explicit 'kill targets'?
- Do we reward teams that shut down failing projects quickly?
- Do projects have built-in expiration dates forcing renewal decisions?
- Is failure treated as data (celebrated for learning) or shame (hidden until crisis)?
Outputs
- Portfolio review cadence and criteria
- Failure reward/recognition program
- Sunset policy for new initiatives