In the world of business, success often appears to be a complex mix of luck and logic.
Drawing on insights shared by Irene Roele during her recent session at AMBS's Festival of Business 2025, this piece explores whether it is the fortunate alignment of external factors that propels a company forward, or is it the rigorous application of strategic thinking and organisational design that truly makes the difference? Delving deeper into this question reveals that while luck may play a role, it is the deliberate and logical approach to strategy and organisational ambidexterity that forms the backbone of sustained business success.
The challenge of sustained superior performance
One of the fundamental challenges for firms is achieving differential superior performance over the long term. This means not only excelling today but remaining relevant and competitive into the future. Organisational ambidexterity captures this dual requirement: firms must be operationally effective now while simultaneously innovating for tomorrow.
Operational effectiveness demands efficiency, control, and incremental improvement, qualities often associated with mature industries. Innovation, however, requires experimentation, flexibility, and a tolerance for uncertainty. Balancing these contrasting capabilities is a complex leadership challenge.
Stages of organisational growth and crisis
Strategy, at its core, is about diagnosis. According to Richard Rumelt, strategy is “a cohesive response to a challenge”. It is not merely a document or a forecast but a clear and logical diagnosis of the forces at work inside and outside the organisation.
This diagnostic process involves understanding macro-environmental factors such as technological shifts and social trends, as well as internal assets like people, intellectual property, and operational capabilities. Crucially, effective strategy requires a shared viewpoint, not groupthink but a consensus on priorities, threats, and focus areas.
The complexity of this work cannot be overstated. Strategic diagnosis is “gnarly,” to borrow a term from practice, full of knots, requiring rigorous analysis, experience, and a willingness to grapple with uncertainty.
Strategy as diagnosis and cohesive response
Strategy, at its core, is about diagnosis. According to Richard Rumelt, strategy is “a cohesive response to a challenge”. It is not merely a document or a forecast but a clear and logical diagnosis of the forces at work inside and outside the organisation.
This diagnostic process involves understanding macro-environmental factors such as technological shifts and social trends, as well as internal assets like people, intellectual property, and operational capabilities. Crucially, effective strategy requires a shared viewpoint, not groupthink but a consensus on priorities, threats, and focus areas.
The complexity of this work cannot be overstated. Strategic diagnosis is “gnarly,” to borrow a term from practice, full of knots, requiring rigorous analysis, experience, and a willingness to grapple with uncertainty.
The role of theory and practice
While practical experience is invaluable, theory provides essential tools to enhance strategic thinking and execution. Frameworks and models help organisations test assumptions, focus on competitive positioning, and craft bold strategic actions. Firms known for their success often invest heavily in developing deep theoretical expertise alongside practical insights.
In today’s rapidly evolving digital environment, the scientific approach to strategy is increasingly important. Technologies such as AI and advanced analytics enable richer market and customer understanding, improving the precision of strategic decisions. Ignoring these tools can place organisations at a significant disadvantage.
Organisational culture vs. structure in ambidexterity
An important question in the pursuit of ambidexterity is the relative role of organisational structure and culture. Both are critical, yet their impact can vary by context. Some organisations may find that formal structures, governance models, and architectures play a dominant role in enabling operational effectiveness and innovation. Others may lean more heavily on a culture that encourages flexibility, risk-taking, and collaboration.
Ultimately, ambidexterity requires alignment across both dimensions, structures must enable innovation and control, while culture must support the behaviours and mindsets that allow the organisation to thrive in complexity.
Case study: IKEA vs. Vitsoe
The contrast between IKEA and Vitsoe provides a compelling example of different paths to success rooted in strategic clarity and organisational design.
IKEA, the global furniture giant, is famed for its mass-market approach, flat-pack furniture designed for efficiency and affordability. Its strategy emphasises operational effectiveness, leveraging scale and standardisation to deliver low-cost products worldwide. However, this has sometimes led to challenges in maintaining product durability and customer satisfaction, showing the limits of focusing primarily on efficiency.
Vitsoe, founded by Dieter Rams, takes a different approach. Vitsoe’s strategy centres on timeless design, sustainability, and long-term customer relationships. It focuses on quality and repairability, encouraging customers to keep and maintain products for life. This approach embodies ambidexterity, combining operational excellence with innovation in customer experience and environmental responsibility.
Both companies are successful but demonstrate how logic and strategic clarity, rather than luck, underpin sustainable business models, whether through scale and efficiency or through quality and longevity.
Final thoughts
While luck can influence timing and external conditions, business success is fundamentally shaped by logic, strategic clarity, and adaptive leadership. Organisations that navigate growth challenges thoughtfully, balance efficiency with innovation, and combine culture with structure are better positioned for sustained success. The examples of IKEA and Vitsoe show different but equally valid strategic paths, proving that success is more about deliberate navigation than chance.
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