

Joseph L. Bower on Resource Allocation and Strategy
19 snips Jun 9, 2025
Joseph L. Bower, a Harvard Business School professor and author, shares insights from his influential work on resource allocation and strategy. He discusses how real strategy often emerges from the decisions of middle managers rather than high-level plans. Bower emphasizes the importance of empathy in management and learning from case studies like Opel and Timken. He explores how structure can drive strategy more effectively than traditional presentations and highlights the power of proactive decision-making in organizations.
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Miles' Law on Perspectives
- "Where you stand depends on where you sit" captures how differing roles shape perspectives on resources.
- Each department advocates what it believes best suits its priorities, leading to natural conflict requiring empathy.
Lou Hughes' Bold Opel Strategy
- Lou Hughes at Opel acted swiftly post-Berlin Wall, buying an East German plant and building local distribution.
- He earned HQ support by pushing a bold vision, leading Opel's growth against conventional strategy.
Act to Learn Incrementally
- Act incrementally and learn from each step when facing new situations.
- Use resource allocation for small experiments that build towards a larger strategic goal.