The primary cause of extinction of most animal species is habitat loss. Hunting and poaching are threats to species like Rhinos, but far more common are instances like the “Alagoas foliage-gleaner” where a Brazilian bird goes extinct because of Amazonian logging. 

There a two parallels when I think about this lesson

#1 – The danger of over optimization 

Many extinct or endangered animals are adapted to unique habitats. This is why we see the Amazon or islands with the highest percentage of endangered animals. These habitats were the same for thousands of years. Animals thrived by optimizing to these ecosystems, but by doing so they lost the ability to change. 

This comparison extends beyond the animal world to companies too. Many regional newspapers focused entirely on local advertising via classified ads. They were local monopolies and making money hand over fist, but when this landscape shifted, so did their business. The key point to focus on for these companies wasn’t the money they made in any one year, but the emergence of a new medium in the internet. 

The emergence of the internet has been analyzed better in other forums, but my key point is this created a “habitat loss” event. The impact of habitat loss is greatest when a habitat hasn’t shifted for a period of time. This is particularly on my mind with areas like Healthcare and Education as the 100+ small shifts likely matter less than one future megatrend.

#2 – The value of adaptability

The inverse of animals optimized to islands is those who thrive everywhere. Humans in fact are one of the most amazing animals due to how many different ecosystems we live in. Humans are rarely the best suited animal to any individual habitat; we sweat, shiver, or get sunburned everywhere, but we are remarkably adaptable to everywhere. 

Flexibility doesn’t win you awards, but it helps you stay in the game as a habitat shifts under your feet. For people and companies I interact with, the two key questions on my mind are: 

  1. What are you assuming will stay constant?
  2. What happens if it changes?  

These questions determine the habitat we operate in. For companies like Amazon that do it thoughtfully (Jeff Bezos referenced customers always wanting lower prices), they will thrive, but for companies like regional newspapers, habitat change is both the only thing that matters and a death sentence.

Categories: Uncategorized