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Monday, April 21, 2014

The Red Queen Hypothesis


The Red Queen hypothesis is a theory in evolutionary biology that suggests that an organism must constantly adapt and evolve, not just to have a competitive advantage, but in order to survive. The term is taken from a saying in the book Through the Looking-Glass by Lewis Carroll. The Red Queen says to Alice “Now, here, you see, it takes all the running you can do, to keep in the same place.” The Red Queen hypothesis suggests that over time the organisms that survive are not the ones that are the quickest, strongest, fastest, or smartest, but rather the ones that are most adaptive. When people think of Charles Darwin, they immediately think “survival of the fittest.” However, Darwin actually said “It is not the strongest of the species that survives, it is the one that is the most adaptable to change.” I believe this same concept applies to business as it does to evolutionary biology.

For a variety of reasons, businesses are changing more than ever before. Part of this has to do with an increase in competition. Ideas can circulate more freely due to the interconnectedness of our society. As a result of this, businesses are forced to be ever responsive to their changing environment. This often manifests in a change in the business itself.

However, it is not actually the business that does the adapting – it is the people the business is comprised of. One of the biggest detriments to success (however you may define it) is complacency. Yet this has always been the case. In more recent times, not only is complacency a threat to success, but continuing to grow at the same rate is also a danger. Due to this, is it necessary to be adaptive.

This begs the question, how can we be adaptive?

There are a few key ways in my opinion. The first was discussed in the very first post on GenYus. It is helpful to be open to changing one’s mind. Circumstances change. So too should one’s thoughts and opinions when warranted. Author Daniel Kahneman was once asked the following by a fellow author:

When I asked Danny how he could start again as if we had never written an earlier draft, he 
said the words I’ve never forgotten: “I have no sunk costs.”

Sunk costs are costs that have already been incurred and thus cannot be recovered. In remarking this, Kahneman is implying that he is willing to change his mind because he does not consider anything lost. He is open to changing his mind and in this specific example, changing his work. This is a beneficial attitude to have when being adaptive.

A second way to stay adaptive is to avoid becoming satisfied. Let me clarify this by explaining a scene from the TV show Mad Men. There is a great scene where the main character Don Draper is trying to land a big client. The client comments that they are happy because they have more than 50% market share. Don responds with the following:

I’ve been looking at what you’re doing and I think you’re in desperate need of change. … Even though success is a reality, its effects are temporary. You get hungry even though you’ve just eaten. … You’re happy with 50 percent? You’re on top, and you don’t have enough. You’re happy because you’re successful. For now. But what is happiness? It’s a moment before you need more happiness. I won’t settle for 50 percent of anything. I want 100 percent. You’re happy with your agency? You’re not happy with anything. You don’t want most of it, you want all of it. And I won’t stop until you get all of it. Thank you for your time.

And then Don walks out. I would highly encourage you to view the scene here.

Overall, the Red Queen hypothesis, while meant for evolutionary biology, can provide us with some valuable suggestions about how to remain relevant as a business and also as individuals. Remaining open-minded to change and avoiding becoming satisfied are two good ways to start.

-Joe


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