放收 Dynamic Strategy: The Fang-Shou Cycle, Outside-In & Inside-Out

"长江后浪推前浪 (As in the Yangtze River, the waves behind ride on the ones before).” - Chinese proverb -

While conducting research, I encountered the concept of 'fang-shou,' prompting me to contemplate a straightforward yet elegant approach to strategy that resonates with my understanding.

Researchers of Chinese politics noticed an apparently oscillating pattern of political relaxing and tightening over the years, known as the fang (放: relaxing)-shou (收: tightening) cycle. This cycle manifests as expansion/contraction, ideological relaxation/control, and administrative decentralization/recentralization. (Read the paper here)

• Fang (放): Represents periods of openness, external focus, and integration of new ideas.

• Shou (收): Represents periods of consolidation, internal focus, and reinforcement of existing structures.

This brought to mind the cyclical 'Outside-in / Inside-out' strategic approach I encountered during interactions with bureaucratic professionals.:

• Inside-Out Approach: Focus on internal processes and efficiencies.
• Outside-In Approach: Focus on external demands and market conditions.

Alternating between two distinct cycles are simple and common approaches to strategy. The following opposing forces or perspectives interact in a dynamic and cyclical way to drive progress and balance:

• Exploration-Exploitation Framework: Similar to the fang-shou cycle, this model alternates between innovation (external focus) and optimization (internal focus).

• Harvesting and Investing Cycle: Reflects the balance between maximizing current assets (internal focus) and investing in future opportunities (external focus).

• Alignment and Adaptation Cycle: Aligns with the fang-shou cycle by alternating between internal alignment and external adaptation.

• Centralization and Decentralization Cycle: Alternates between consolidating control (internal focus) and fostering autonomy (external focus).

• Stability and Change Cycle: Similar in alternating between maintaining stability (internal focus) and embracing change (external focus).

As simple dialectics, these apparently oppositional forces are useful for understanding how strategic balance and adaptability is achieved.

Of course, these things are not black and white and it is possible to pursue seemingly opposing strategies concurrently.

韬光养晦 😂

More on this later.