This paragraph on organizational model is super relevant to understanding how tech companies are responding to LLMs today. > Aoki’s key insight was that the J-

This paragraph on organizational model is super relevant to understanding how tech companies are responding to LLMs today. > Aoki’s key insight was that the J-mode had a comparative advantage in environments of moderate volatility: situations where conditions changed frequently enough that rigid central plans would be outdated before they were executed, but not so radically that only top-down strategic intervention could cope. In an environment of stable, predictable demand, the H-firm did fine; in an environment of extreme disruption, where the whole product line had to be rethought, centralized authority was indispensable, and the H-firm also did fine. But in between—where the challenge was to make constant small adjustments in a changing but recognizable paradigm—the J-firm excelled. See for example https://aakashgupta.medium.com/microsofts-ceo-just-became-a-product-manager-that-s-a-80-billion-failure-signal-f21ce2369841 https://aakashgupta.medium.com/microsofts-ceo-just-became-a-... or https://www.bloomberg.com/news/newsletters/2025-06-12/zuckerberg-snaps-back-into-founder-mode-on-ai-for-better-or-worse https://www.bloomberg.com/news/newsletters/2025-06-12/zucker...