Adaptive Cycle Phases/States in the Lower Right Quadrant

Growth or Exploitation
Conservation
Collapse or Release
Reorganization
Description
  • This state is characterized by rapid growth and the exploitation of resources. It's a period of expansion where entities take advantage of opportunities and resources available to them, leading to increased productivity and growth.
  • In the conservation state, the system becomes more established and stable. Resources are conserved, and there is a focus on maintaining the status quo. This stage is characterized by efficiency, predictability, and control.
  • This state is marked by a sudden, often unexpected, collapse or release. The system can no longer maintain its structure, leading to a breakdown or collapse. This can be due to a variety of factors such as resource depletion, external shocks, or internal failures.
  • In the reorganization state, the system begins to restructure itself and adapt to the new conditions after the collapse. It's a period of innovation and experimentation where new opportunities and structures can emerge.
Example
  • For example, in the business world, a start-up company in its initial stages might be in the growth or exploitation phase. They would be focused on rapid expansion, gaining market share, and leveraging all available resources.
  • A mature, well-established organization would be in a conservation phase. They would focus on maintaining their market position, conserving resources, and optimizing their operations for efficiency.
  • An example of the collapse or release stage could be the financial crisis of 2008. The banking system collapsed due to a combination of risky investments, poor regulation, and a lack of transparency.
  • After the financial crisis, the banking system entered the reorganization stage. New regulations were introduced, banks had to adapt their business models, and there was a surge in financial technology innovations.

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