The document discusses the principles of adaptive leadership. It states that adaptive leadership is a practical approach to solving business issues by identifying important aspects and guiding leaders. It provides several principles of adaptive leadership, including building on the past rather than abandoning it, anchoring change in enduring organizational values, and leading through experimentation and managing losses from change. The document also distinguishes between technical problems, which can be solved with existing knowledge, and adaptive challenges, which require new solutions and changes in behaviors and mindsets. It outlines a nine-step process for adaptive leadership that includes discerning challenges, designing interventions, and analyzing emerging factions.