By far the most uncomfortable part of writing The Grid was researching the topic of adaptability.

Studying the rise and fall of empires and ecosystems forced me to reckon with just how crucial adaptability is and how drastically we undervalue it.

“Given the choice between maintaining adaptability and improving something else, adaptability is usually sacrificed.” I wrote. “And as with many things in life, you don’t miss it until you suddenly need it.”

What determines business adaptability?

Cash
If you run out of cash you can’t continue to operate the business. “Cash is a buffer that insulates you from change — buying you time to figure out what to do.” I wrote.

Scalability or capacity
The ability to scale up or down in response to changing demand is crucial, as is how effectively we manage our current resources.

Complexity and rigidity
Businesses tend to fail from the inside out, because of, “Operational and psychological baggage." That prevents us from responding to change.

Today many businesses face an adaptability crisis — too little cash reserves, too much rigidity, and major scaling issues have combined to devastating effect.

I deeply regret not speaking up about this topic more in the last year. It might have made a small difference to some.

See this post on LinkedIn