The combination of the two axis leads to a 2x2 matrix with 4 distinct quadrants, where one can position an individual company, or it's various business units serving various markets/industries:ġ️⃣ The MIGRATOR 🦆 (High Degree of Change, Low Turbulence) -> in this category, companies or BUs have to focus on leaving their old & obsolescent business models behind and focus towards more promising ones, using specific and voluntarily deliberate processes (i.e. ✅ Turbulence (rate of change and unpredictability): Depends on 3 main parameters 1/ Volatility in market positions, 2/ unpredictability of outcomes, 3/ widening gap in performance between winners and losers

(see BCG Paper for more details on each 'Degree').įurthermore, BCG argues that the optimal choice of adaptive style (of a given company or Business Unit) depends on the Environment, and essentially two dimensions: Effective 'Recursion' takes place using the VSAM Loop: Variation (V), Selection (S), Amplification (A), Modulation (M) (see BCG Paper for more details).īCG highlights that companies are going to execute this VSAM loop in various ways according to mainly four factors: → Recursion (evolution): Experimentation, Learning, Mobilization, Iteration, Modulation based on experience. → Resilience (robustness): Redundancy, Diversity, Loose coupling, reserves and buffers, insurance and hedging, environment shaping → Responsiveness (agility): Short cycle times (continuousness), modularity, decentralization, signal transduction, fast mobilization, rough plans → Readiness (anticipation): Environmental sensing, Scenarios / megatrends, External networks and openness, system shaping To be successful at implementing action plans in this new business environment, BCG identified four key success factors or 'The Four Rs of Adaptive Strategy': The paper advocates that the increasingly higher levels of 'turbulence' on markets is progressively shortening the life span of classical business strategy frameworks, therefore opening up new conceptualisations to navigate in this new business environment, where forecasting is becoming tougher to apply. In January 2010, BCG (The Boston Consulting Group), the renowned strategy consulting firm published a paper called 'Adaptive Advantage' (Martin Reeves, Michael Deimler, Yves Morieux, and Ron Nicol).

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