In Biology, growth is not maximized in order to increase chances of survival, which is the converse of traditional business model of “Grow or Die”. Get these quick tips on what biology can teach us about growth.
1. What Biology Can Teach
Us About Growth
Based on Research from Edward Hess, University of Virginia (“Grow to Greatness)
with additional notes (no copyright infringement intended)
Powerpoint Created by The Supernova Advisory Group
2. Lesson #1
In Biology, growth is not maximized in order to increase chances of survival
Converse of traditional business model of “Grow or Die”
3. Lesson #2
Increase in the size of an organism sometimes increases risk of it being eaten
by predators
Predators typically prefer the biggest prey
As species gets larger, they are easier to see and cannot move or respond as fast
Growth can create survival risks, leading to conclusion being bigger not always
better
4. Lesson #3
Many organisms have a finite amount of expendable energy and therefore,
must allocate that energy across competing functions:
Reproduction- the natural process among organisms by which new individuals are
generated and the species perpetuated
Growth- an increase in size, number or significance; a stage of development
Maintenance- care or upkeep, as of machinery or property; means of upkeep,
support, or subsistence; livelihood
Survival- the act or fact of surviving, especially under adverse or unusual
circumstances; a person or thing that endures
As a result, at any given time there is a limit to the amount of energy available for
growth.
Organizations must have excess managerial capacity in order to grow (effectively).
5. Lesson #4
Growth requires trade-offs, resulting in periods of growth and periods of no
growth
Growth is not linear and not continuous without there being a compromise in the
presentation of earnings, value of assets, reserves and other valuation methods
6. Lesson #5
In plants there appears to be two different strategies:
Growth dominated plants- invest their energy in growth processes
Example: Walmart
Strategy consistent with “Grow, Grow, Grow”
Other Plants- invest in processes to differentiate themselves
Example: Apple
Strategy consistent with Seth Godin’s “Purple Cow” argument
Consistent with business theory that businesses can either be high-volume or niche
players.
Either strategy is not good or bad, just need to be sure which one your business or
organization competes in and spend resources on that strategy.
7. Lesson #6
Growth can be continuous or not, determinate or not, but few things in
nature can grow without limit
8. Why Consider These Lessons?
Growth must be explored and exploited but not at the
detriment of a company’s:
People: human capital and potential
Processes: systems (such as procedures) setup to
ensure consistency and effective utilization of
resources
Controls: governance tools setup to maintain integrity
and accountability
9. Get Your Growth Checklist
Contact us to get our “Growth Checklist” that is based on these lessons from
“What Biology Can Teach Us About Growth” and includes exercises for your
management team to consider where your company resources are being
utilized (reproduction, growth, maintenance and/or survival)
QueVerse Strategies
www.queverse.com
Email: que@queverse.com