Thursday, March 18, 2010

Evolution is Sustainable

We are not talking about some prehistoric bacteria crawling out of some swamp and becoming humans here, but rather evolution as the term for forward moving change. Businesses, products, societies and nature all change, or adapt to improve their position in their environment. The evolution process does not just apply to how a dolphin grew fins, or a tiger developed strips, but how entire systems are in a constant state of change.




The best example of this process is the life of a successional forest. The principle is simple; rocky non vegetated areas slowly become populated by weeds, those weeds are eventually overcome by annual grasses, then perennial grasses. After years of growth and topsoil development species such as pine begin to establish growth, followed several years later by poplars and maples. After years of growth, slowly hickories and oaks begin to move into the area eventually becoming established hardwood forests. During this process changes to micro climates, wildlife population and hydrologic cycles are in constant motion. Then one day a lighting storm strikes, burns the forest to the ground and we are right back to a rocky non vegetated patch of land.


What does this process have to do with the economic environment? Would you consider any of the habitats during the succession to be unsuccessful? Did a prairie become a pine forest because no wildlife lives on prairies, or grasslands just are ‘cool’ among bison anymore? No. These environments evolved in response to competition, available resources, and species demand. In the same way businesses must be able to evolve to provide products and services that best benefit their consumers. AT&T still sells land line services, but they have changed their business model over the years to focus on cellular services. That doesn’t mean that they never should have sold land line services, or should drop that service to their existing customers, but be prepared to change with market demands and develop new technologies. But the trick is they must also be prepared to go back to selling land lines (emerging markets, developing countries, etc) if the opportunities arise.


What is the lesson here? Don’t be afraid to change and grow, but also don’t be afraid to narrow your market or scope. Big is good and so is small. And you can start from nothing, make it to the top and then suddenly find yourself back at the bottom.




What companies do you think have evolved well to remain viable?

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