The Phase 2 Problem

Money buys motion. It doesn't buy capability. I ran a reorganisation once that worked perfectly on paper. New teams in six weeks, new structure, new names on the chart, a launch everyone applauded. Then I sat in with one of those teams a few weeks later and watched them push every real decision straight back up the old chain. WHAT YOU'LL TAKE AWAY The line: Money moved at the speed of a memo. Capability moves at the speed of learning. The tell: More capital approved than people who can land it. If that sentence is true of an organisation, it's living the problem, and the strategy deck doesn't get a vote. The question: Are you staffing for the phase you're actually in? Or still paying for the one you just left? I'd changed the drawing. I hadn't changed the company. The boxes had moved. The power hadn't. The incentives hadn't. The habits hadn't. The new structure was running on the old logic. I'd moved the structure at the speed of a memo, and capability moves at the speed of learning. I hadn't waited for it. That mistake scales. For a long time transformation has been told as a story about money: who's funding what, how big the number is, which sector's next. Then the easy money tightens, and it stops being about deploying more and starts being about using what you already bought. Phase one asked whether we could fund it. Phase two asks the harder, quieter question. Can we absorb it. Most of the market is still answering the first question while standing in the second. The written version of this episode is on Substack: [PASTE EP1 POST URL] New episode every Wednesday. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.builttoabsorb.com