Joe Bower and Clark Gilbert - From Resource Allocation To Strategy

What if everything you knew about strategy was wrong?

In this profound and candid episode, legendary Harvard Business School professors Joseph Bower and Clark Gilbertdismantle the myths of top-down strategy and reveal what actually drives innovation inside organizations — resource allocation.

Hosted by Aidan McCullen, this conversation connects over 50 years of organizational research with real-world disruption—from Clay Christensen’s disruptive innovation, to Intel’s strategic shifts, to why academic institutions resist change.

🔥 You’ll learn:

• Why strategy emerges from internal decisions—not just executive planning

• The role of middle management and customer capture in strategic failure

• How organizations can manage dual transformation

• The secret behind Harvard’s innovation blind spots

• Advice for innovators, executives, and scholars navigating complex systems

This is not your typical leadership podcast. It’s a masterclass in innovation thinking, organizational change, and deep system insights — directly from the architects of the field.

00:00 Introduction and Sponsor Message

00:21 Introducing the Guests: Clark Gilbert and Joe Bower

01:02 Clark Takes Over as Host

01:33 The Connection Between Resource Allocation and Strategy

05:26 Challenges in Strategy Implementation

09:03 Case Studies and Real-World Examples

11:11 Issues in Academic Research

19:48 The Harvard Business School Case

28:10 The Teradyne Case Study

32:41 Elon Musk's Unique Management Style

35:21 The Power of Structural Context in Education

37:50 The Concept of Undermining in Business

39:23 Managing Cognitive Framing in a Changing World

44:06 The Importance of Deep Industry Knowledge

49:16 Advice for Future Scholars

55:56 Final Reflections and Gratitude

📚 Resources and People Mentioned:

• Book: From Resource Allocation to Strategy – by Bower, Gilbert & others
• Dual Transformation – by Clark Gilbert & Scott D. Anthony
• The Innovator’s Dilemma – by Clayton Christensen
• Case Studies: Intel, Teradyne, Kodak, Harvard Business School

💡 Featured Thinkers Mentioned:

• Clayton Christensen – Disruptive innovation pioneer, HBS
• Tom Eisenmann – Strategy & entrepreneurship expert, HBS
• Donald Sull – Former HBS faculty, expert on execution and volatility
• Yves Doz – INSEAD professor, known for multinational innovation research
• Howard Yu – IMD professor; explored tech disruption in Asia
• Tomo Noda – Japanese academic and innovator in business education reform
• Robert Burgelman - MIT professor and prolific author