It shows how as leaders rise to senior levels, their roles become less about doing things that directly drive results and more about directing and supporting others to achieve objectives. Using case studies and research insights the authors reveal how leadership success is thus not so much about having the right core capabilities, but about creating the right environment.

Using the analogy of a smartphone operating system (OS), the book presents a new way of thinking about leadership. The authors provide a clear and practical framework to follow and show how your leadership OS becomes the impact you have, the imprint you make and the foundation of your legacy as a leader.

Leadership OS quote

After reading it, you will learn:

How to diagnose the impact you have as a leader and understand the OS you create
How famous business and societal leaders have created effective – and sometimes ineffective – OSs
How to optimise your OS to produce the best results
How to get people working together effectively, and be a high-performing leader

Providing you with practical and easy to follow advice, this book will show you how leadership success is not about having the core capabilities, but about creating the right operating systems for your organisation.

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Research Information & Knowledge Hub for additional information on IMD publications

This book is part of a series

Leadership OS in 3 ideas
Leadership OS: The operating system you need to succeed

This book is part of a series

Leadership OS in 3 ideas
Leadership OS: The operating system you need to succeed

Hardcover

eBook

You can also buy the book on Barnes & Nobles, Book Depository, Orell Füssli and Routledge.

Publisher

Palgrave Macmillan

ISBN

9783030272920

Leadership OS: Creating an environment for success

3:19

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By Michael D. Watkins
Case reference: IMD-2726 ©2025

Summary

The case study examines the organizational transformation challenges faced by MedTech Diagnostics, an 850 million medical diagnostics company attempting to balance innovation speed with regulatory compliance and quality standards. CEO Patricia Chen must navigate the tension between traditional, reliability-focused operations and agile innovation pods, while facing a critical contract renewal worth 187 million that represents 22 of the company's revenue. The case illustrates the complexities of dual operating models in regulated industries. MedTech's traditional divisions generate 120M in EBITDA and are FDA-compliant but are declining at 8 annually. Innovation pods achieve 120 growth and high customer satisfaction but face higher post-market issues and lower FDA approval rates. Hybrid teams intended as a compromise satisfy neither approach, demonstrating the difficulties of organizational ambidexterity. Chen faces three strategic options: controlled evolution over 24 months, creating a separate subsidiary for innovation, or transforming into a platform company. Each option carries significant costs, risks, and uncertain outcomes. The case explores critical organizational design questions, including culture change, stakeholder management, resource allocation, regulatory navigation, and leadership alignment in transformation contexts. Key themes include managing organizational culture during transformation, balancing innovation with quality in regulated environments, addressing internal resistance and political dynamics, developing effective dual operating systems, and making high-stakes strategic decisions under uncertainty. The case is designed for classroom discussion on organizational change, innovation management, and strategic decision-making in complex operating environments.

Reference IMD-2726

Organization MedTech Diagnostics (Fictionalized)

Available Languages English

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