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How to Use the Adaptive Cycle to Lead Your Business to Success

the adaptive cycle
Knowing how the adaptive cycle works can help you anticipate changes and stay ahead of the game.

What is a Business Ecosystem?

Think of a business ecosystem as a community where different companies work together to create value for their customers.

It’s not just about competing—it’s about teaming up to grow and succeed together.

For example, in the fitness tech world, companies like Apple, Fitbit, and Garmin are not just competitors.

They also push the industry forward together by collaborating in certain ways, making the whole ecosystem stronger.

The Adaptive Cycle

The adaptive cycle is a way to understand how businesses go through phases of growth, stability, change, and renewal.

It’s like the seasons of the year—spring, summer, fall, and winter—each bringing something different. Here are the four main phases:

  • Growth (Exploitation): This is the “spring” phase. Think of a startup just starting out—everything is fresh, exciting, and growing fast, with lots of new opportunities popping up.
  • Conservation: Next comes the “summer” phase. Business is doing well, and things are stable. The focus is on keeping things running smoothly, but there might be less innovation as the company works to maintain success.
  • Release (Destruction): This is the “fall” phase, where big changes—like new technologies or economic shifts—cause the old ways of doing things to break down. It can be tough, but it also makes room for new ideas.
  • Reorganization (Renewal): Finally, we have the “winter” phase. The old methods have fallen away, and now it’s time for reorganization and creativity. This phase is all about finding fresh opportunities and starting the cycle over.

Adaptive cycle

Knowing which phase you’re in can help you plan for what’s coming and make smarter decisions for your business.

How to Apply the Adaptive Cycle to Your Business

Understanding the adaptive cycle is great, but how do you use it in real life? Here’s how:

1. Identify Your Phase

First, figure out which phase your business is in. Are you growing quickly, maintaining stability, facing big changes, or reorganizing? This will help you make the right decisions going forward.

To start, look at your current growth, market position, and any recent changes. This will give you a clear idea of where you stand.

adaptive cycle

2. Adapt Your Strategy

Once you know your phase, adjust your approach. Here’s how to plan for each phase:

  • Growth: Focus on innovation and seizing new opportunities.
  • Conservation: Focus on efficiency and maintaining what you’ve built.
  • Release: Be flexible and ready to make big changes.
  • Reorganization: Get creative and explore new paths forward.

Then, create a simple plan based on your phase. For example, if you’re in the growth phase, think about launching a new product or entering a new market.

adaptive cycle

3. Stay Flexible

The business world changes fast, so being flexible is key. Make sure you’re ready to pivot when needed, whether that means adjusting your strategy or trying something new.

Have regular check-ins with your team to discuss what’s working and what’s not. This helps you stay ready for whatever comes next.

adaptive cycle

By knowing where you are in the cycle, you can prepare for the next step, stay flexible, and keep moving forward.

Conclusion

Understanding the adaptive cycle gives you a clear roadmap to guide your business through growth, challenges, and change.

Remember, being able to adapt is what will help your business thrive no matter what happens. Keep learning, keep growing, and be ready to lead your team through any phase.

For more leadership development tips, follow my LinkedIn or check out my podcast, Next-Gen Leaders.

Until next time, keep striving, growing, and leading with purpose.

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Picture of Bianca Cardenas, PhD
Bianca Cardenas, PhD

My mission is to empower next generation leaders to make an impact and get to the next level.

About Me
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