Conservation (9)
Lifecycle Stage
In the Conservation Stage, all goals are achieved, and the value stream is in decline.
Initiation • Expedition • Formation • Validation • Stabilization • Acceleration • Crystallization • Expansion • Conservation • Termination
Purpose
“No matter whether a business model still stands on its own or is part of a larger company, the Conservation stage (9) is the point where atrophy sets in. It is the beginning of the end for your business model. Customers are moving elsewhere, sales and profits are dropping, and there could be a negative cash flow. The business is now a senior citizen, with an eye on a retirement home.
Despite having enjoyed a dominant position in the market, the organization is mostly concerned with cutting costs and putting most of its energy into younger, alternative business models. It will help sustain the current one for as long as is reasonable, but it will expect the business model to collapse at some point.”
Notes
The text on this page is adapted from the book Startup, Scaleup, Screwup by Jurgen Appelo.
Rules / Constraints
We have identified no rules/constraints yet.
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“Life is in stages. There is a stage where, like grasshoppers, we hop from grass to grass. And another, where we move from grass to grace.”
(Source: Michael Bassey Johnson)