The Innovation Show Joe Bower and Clark Gilbert - From Resource Allocation To Strategy
Aug 20, 2025
Harvard Business School legends Joe Bower and Clark Gilbert dive deep into the essence of strategy, challenging conventional top-down approaches. They emphasize the critical role of resource allocation in driving innovation, revealing how strategic decisions often emerge from internal dynamics. The duo shares insights on structural barriers to innovation, the importance of customer-centric problem-solving, and the disconnection between academia and practical application. Their rich experience offers invaluable wisdom for innovators and leaders alike.
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Structure Creates Strategy
- Strategy emerges from how resources are actually allocated inside organizations, not from top-down plans.
- Performance measures, pay, and promotion rules shape those allocations and thus determine strategy.
Strategy Is A Multi-Level Process
- The resource allocation process is multi-level, iterative, and conflict-ridden, not a one-time top-down event.
- Executives must accept complexity instead of seeking oversimplified top-down designs.
Allocate By Business, Not Project
- Allocate resources at the business level, not merely by evaluating isolated projects.
- Stop funding dying businesses because individual project proposals look profitable on paper.
