AI and Augmentation
Martin's framing of AI for leaders: the strategic question is not whether to adopt but augmentation versus substitution. He sketches levels of augmentation, from AI as faster clerical labour up to AI as a genuine thinking partner that extends human judgment.
He sketches levels of augmentation, from AI as faster clerical labour up to AI as a genuine thinking partner that extends human judgment. The strategic choice is to climb the augmentation ladder deliberately rather than harvest substitution savings and stop.
Why substitution-first is a trap in his logic: cost reduction is available to every competitor simultaneously, the AI version of Operational Excellence Is Not Strategy. Under Winner-Takes-Most Dynamics, parity tools produce no advantage; advantage comes from configurations rivals can't or won't copy (The Cant-Wont Test), proprietary data that compounds, workflows redesigned around augmented judgment, capabilities built jointly between people and models (Must-Have Capabilities).
The leadership burden is a cascade question: where does AI change Where to Play (new served problems), where does it change How to Win (compounding, asset-specific intelligence), and what Enabling Management Systems make augmented work the norm rather than a pilot.
Seam with the OKR system: the same position held throughout, AI as the accelerant, not the point. Substitution-first adoption is the AI version of an all-operational OKR portfolio.
Our synthesis of Roger Martin’s published work, sources credited. Read the originals: they’re excellent.
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