"The idea of the three-box solution has its roots in Hindu spirituality," explains Govindarajan. "The ancient scriptures portray life as a continuous cycle of preservation, destruction, and creation. Every entity in the universe invariably passes through these three phases." We've seen how the principles of the three-box solution, inspired by 5,000-year-old texts, are relevant for companies today. To build immortal companies, you must master this preservation, destruction, and creation cycle. "It's a mission that's never fully accomplished because change is the only constant," concludes Govindarajan. You can watch my full interview with Professor Vijay Govindarajan on how the three-box solution helps address the biggest challenges in building an AI-powered organization.

Creating a new business and optimising an existing one are fundamentally different management challenges. It's doing both simultaneously that is the real challenge for business leaders, innovation guru Vijay Govindarajan tells Kanika Datta The three-box paradigm sets out an ideal for management. What goes wrong in practice? The Three-Box Solution essentially covers everything an organisation should be doing. Box 1 involves managing the business at peak profitability, which addresses the efficiency angle.