Joseph L. Bower on Resource Allocation and Strategy

"Where you stand depends on where you sit."

In this exclusive episode of The Innovation Show, Harvard legend Joseph L. Bower shares the untold story behind his groundbreaking work on Resource Allocation to Strategy — a theory that has shaped generations of business leaders, strategists, and scholars.

Bower reveals:

How real strategy emerges through the decisions of middle managers
Why structure drives strategy more than PowerPoint slides do
What we can learn from Lou Hughes at Opel, and the power of acting before HQ gives permission
Insights into companies like GM, Timken, and even Tesla

This is a masterclass in how strategy really works — not in theory, but on the ground.

Revisit the origins of strategic thought that still matter today.

00:00 Introduction and Sponsor Announcement

00:42 Introducing the Guest: Joseph L. Bower

03:16 The Origins of Resource Allocation Theory

05:30 Insights from the Field: Case Studies and Key Learnings

17:26 The Role of Empathy and Perspective in Management

20:57 Case Study: Opel's Strategic Response to the Berlin Wall

35:38 Case Study: Timken's Bottom-Up Acquisition

38:04 The Importance of Learning and Adaptation in Strategy

52:59 Conclusion and Final Thoughts

53:25 Closing Remarks and Sponsor Acknowledgment

Thanks to our sponsor Kyndryl:

https://www.kyndryl.com/us/en

From resource allocation to strategy

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