The Innovation Show Robert Burgelman on Strategy Making Intel and Resource Allocation
Jun 20, 2025
Robert Burgelman, Professor Emeritus of Management at Stanford University, shares insights on corporate strategy and innovation. He discusses Intel's transformation from DRAMs to microprocessors, emphasizing emergent strategies and strategic dissonance. Burgelman explains how internal insights can shape corporate strategy and the balance between top-down planning and autonomous initiatives. The conversation also explores the significance of strategic leadership and resource allocation in navigating competitive landscapes, illustrating how adaptability is key for businesses.
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Bottom-Up Decisions Shaped Intel
- Andy Grove revealed that middle-level managers made technical decisions that limited top management's choices.
- This showed the power of bottom-up actions shaping overall corporate strategy.
Rubber Band Theory of Strategy
- Strategic dissonance occurs when daily actions diverge from stated strategy, signaling a firm's struggle.
- The "rubber band theory" illustrates tension that must be managed to avoid organizational fracture.
Resource Allocation Reveals Culture
- Resource allocation rules reveal deep company identity and cultural values.
- At Intel, allocating capacity by highest margin reflected its identity as a differentiator.
