Branch Abscission
Companies should actively prune underperforming business units rather than letting them slowly die.
The tree actively kills the branch rather than letting it die passively. This is portfolio pruning.
Plants prune themselves through branch abscission - deliberate shedding of branches. Three triggers: (1) Shade-induced abscission: lower branches receiving <5% full sunlight where photosynthesis no longer exceeds respiration - branch costs more to maintain than it produces. (2) Damage-induced abscission: branches broken by wind/ice may be sealed off and discarded rather than repaired if repair cost exceeds future production value. (3) Age-induced abscission: even healthy branches on very old trees (200+ years) may be shed as vascular connections become less efficient.
The trigger is hormonal: ethylene (stress hormone) rises in the branch, auxin (growth hormone) drops, an abscission layer forms at the branch base, and the branch detaches. The tree actively kills the branch rather than letting it die passively. This is portfolio pruning - continuous evaluation of which branches produce net positive photosynthate.
Business Application of Branch Abscission
Companies should actively prune underperforming business units rather than letting them slowly die. SAP sunset 70+ legacy products (2015-2020), Berkshire closed textiles after 20 years of losses. The key is pruning before branches die - SAP waited 10 years too long and nearly failed.