Martin Reeves pitched a hypothetical "Human Immune System" product to illustrate principles of resilience to a skeptical manager named Bob. Key features highlighted were redundancy, diversity, modularity, and adaptability.
Martin Reeves studied resilient biological systems to identify 6 key principles for making a company last 100 years: redundancy, diversity, modularity, adaptability, embeddedness, and prudence. Examples included the 1,418-year-old Kongo Budi company and Toyota's supplier network.
Martin Reeves argued that in addition to "mechanical thinking" (goal-setting, analysis, efficiency), companies need to master "biological thinking" embodied by the 6 resilience principles, especially as small entrepreneurial firms lose this ability over time.
Meeting Notes:
The Human Immune System Product Pitch
Martin Reeves is pitching a hypothetical product called the "Human Immune System" to illustrate principles of resilience to a skeptical manager named Bob
Key features highlighted by Martin Reeves:
Redundancy: Millions of components like leukocytes, B-cells, T-cells, and natural killer cells to handle unexpected threats
Diversity: Different types of immune cells (B-cells, T-cells, natural killer cells) to tackle a wide range of threats
Modularity: Surface barrier, innate immune system, and adaptive immune system work together as modular components, so if one fails, others can take over
Martin Reeves: "If one system fails, another can take over, creating virtually foolproof systems."
Adaptability: Can develop targeted antibodies to new threats and remember past threats for future encounters
Martin Reeves emphasizes the product is embedded within the larger human body system and works in conjunction with it
Bob expresses skepticism, calling the product inefficient, overly complex, siloed, overreacting, and designed for someone else's benefit rather than the user's
Martin Reeves argues that following Bob's philosophy of efficiency and simplicity would result in an immune system unable to handle new threats, leading to the user's death within a week of encountering a new virus strain
Lessons from Biological Systems for Business Resilience
Martin Reeves studied resilient biological systems like rainforests and managed forests to identify principles for making a company last 100 years (longer than average 30-year lifespan of U.S. public companies)
6 key principles underpinning resilience:
1. Redundancy
2. Diversity
3. Modularity
4. Adaptability
5. Embeddedness
6. Prudence
Examples illustrating the principles:
Kongo Budi (1,418-year-old Japanese company) failed due to lack of prudence by over-borrowing
Strictly Film survived by diversifying and adapting its portfolio while Kodak failed
Toyota's supplier network showed resilience through modularity, redundancy, and being embedded within an integrated system
Ecolor tackles disruptive technologies through prudence (early acquisition) and adaptability
The Need for "Biological Thinking" in Business
Martin Reeves argues traditional "mechanical thinking" (goal-setting, analysis, efficiency focus) is insufficient in dynamic, unpredictable environments
Martin Reeves: "In addition to the mechanical thinking, we now need to master the art of biological thinking, as embodied by our six principles."
Small entrepreneurial companies naturally think and act "biologically" due to lack of resources to control their environment
Large companies often lose this "biological thinking" ability over time and need to rejuvenate it to survive and thrive
Companies should consider two key questions:
1. How good is our competitive position? (traditional strategic question)
2. Martin Reeves: "How long will that game last?" (resilience question based on biological principles)