1. A SHORT GUIDE TOORGANISATIONAL AMBIDEXTERITY THE

2. KEY 3. TO 4. DRIVING 5. LONG-TERM 6. GROWTH 7. AND 8. SUCCESS Written by Matt Stocker & Debbie Stocker Designed by Matt Stocker 9. HUMAN AMBIDEXTERITY is dened as...the ability to use the right and left hands equally wellPiano ngers by seriousbri on Flickr: www.ickr.com/photos/seriousbri/4148739768/ 10. Clearly, organisations dont have hands...Prosthetic hand mod by atomic-kitteh on Flickr: www.ickr.com/photos/atomic-kitteh/6655487057/ 11. ...but that doesnt stop them being ambidextrous Prosthetic hand mod by atomic-kitteh on Flickr: www.ickr.com/photos/atomic-kitteh/6655487057/ 12. Research has shown that ambidextrous businesses have... ENHANCED SUSTAINABILITYREDUCED RISKINCREASED COMPETITIVE ADVANTAGETHE ABILITY TO OUTPACE OTHERSIMPROVED PERFORMANCE PROFITABLE GROWTHMORE SATISFIED CUSTOMERSONGOING STRATEGIC RENEWALMORE NEW PRODUCT INTRODUCTIONSREDUCED INERTIALONG-TERM SUCCESS Ahuja & Lampert (2001). Entrepreneurship in the large corporation: a longitudinal study of how established rms create breakthrough investions. Strategic Management Journal, 22:521-543. Birkinshaw & Gibson (2004). Building ambidexterity into an organization. MIT Sloan Management Review, 45(4):47-55. Birkinshaw & Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Brieng. He & Wong (2004). Exploration vs exploitation: an empirical test of the ambidexterity hypothesis. Organization Science, 15(4):481-494.OReilly & Tushman (2011). Organizational ambidexterity in action: how managers explore and exploit. California Management Review, 53(4):5-22. Sarkees & Hulland (2009). Innovation and efciency: it is possible to have it all. Business Horizons, 52:45-55. Venkatraman, Lee & Iyer (2007). Strategic ambidexterity and sales growth: a longitudinal test in the software sector.Working Paper. 13. Organisational Ambidexterity IS MADE UP OF2DIMENSIONS 14. EXPLORATION TOY GO LDL BOIn the pursuit of new knowledge and opportunities, you venture into the unknown. You search for new ideas and possibilities. You learn and experiment. You adapt quickly to change. You are proactive, innovative, and keen to avoid complacency. Critical conversations are encouraged.EXPLOITATION WRINGING OUT EVERY LAST DROPYour activities are aligned and efcient. You are extremely effective at managing todays business demands. You use, extend and rene your existing knowledge. Existing products, capabilities and competences are exploited. Existing advantages are continuously reinforced. Improvement and incremental innovation build upon and enhance value for today. 15. An organisation that is adept at EXPLOITATION has the following characteristics...1A laser-like focus on maximising returns2A fearsome ability to implement and execute plans Operational excellence is driven throughout3if improvements and renements can be made, they will be made4Efciency, margins and productivity are the order of the day5Incremental gains are constantly pursued6It functions like a well-oiled machine 16. 1It creates room for diversity and discovery, both internally and externally2 3Staff are encouraged to experiment and playPioneering, radical and disruptive innovations are supported and pursued4 5Creativity, exibility and adaptability are its modus operandiRisks are taken in pursuit of game-changing outcomes and breakthrough growthAn organisation that is adept at EXPLORATION has the following characteristics... 17. Professor Robert Duncan first coined the termOrganisational Ambidexterity in1976 by Juho Holmi on Flickr: http://www.ickr.com/photos/juhoholmi/3415061695/ 18. Organisational ambidexterity depends on a companys ability to...CE AN AL B ExploitationExploration 19. and its ability to...SWITCH between the two as requiredExploitationExploration 20. ALANCE BBeing able to do this within your organisation results in... SWITCHial nc an ed e as nc re Inc orma rf peed sk uc r i ed nal R er xt eion re isat o an r, m org tte le A ab pt da a 21. For any organisation... ADVENTURERZOMBIEMINERLowHighLowEXPLORATIONHighExploration can be LOW to HIGHCONQUERORat the same time as... Exploitation being LOW to HIGHEXPLOITATION 22. ADVENTURERZOMBIEHighOrganisational AmbidexterityLowMatrixEXPLORATIONHighMINERLowIntroducing our....CONQUEROREXPLOITATION 2012 Stocker Partnership Ltd 23. Resulting in HighCONQUEROR24ZOMBIEEXPLORATIONofLow4 1ADVENTURERMINER31LowHighpotential states an organisation can be in EXPLOITATION 24. Organisational Ambidexterity Meet the crewThe Miner Exploiting but not exploringThe Adventurer Exploring but not exploitingThe Zombie Neither exploring nor exploitingThe Conqueror Exploring and exploiting 25. Meet the AdventurerMeet the ConquerorExploring but not exploitingExploring and exploitingSuperpowerSuperpowerSeeks out out new ideas like nobodys business. Ninja at spotting market shifts. Unafraid of risk.Explores the unknown while wringing every last drop out of today. Does both with equal dexterity.Meet the ZombieMeet the MinerNeither exploring nor exploitingExploiting but not exploringSuperpowerSuperpowerKeeps going despite the odds. Makes other businesses look amazing by comparison!Keeps head down and stays focused on the immediate task at hand, regardless of distractions. 26. Meet the AdventurerMeet the ConquerorExploring but not exploitingExploring and exploitingFatal flawFatal flawStruggles to put ideas into practice. Much strategic intent but little effective action. Weak on driving day-to-day performance.Can sometimes overstretch in both directions at once without the strength or resources to support this strategy.Meet the ZombieMeet the MinerNeither exploring nor exploitingExploiting but not exploringFatal flawFatal flawAKA the walking dead. Lives in denial and on borrowed time. Without signicant action may cease to exist at any moment.Shies away from the future and disruptive change. Vulnerable to market shifts and innovative competitors. 27. ?So what are you 28. The Miner Exploiting but not exploring You are a mining organisation if: You are primarily focused on maximising returns from your existing resources and the capabilities that you have nowYou tend to shy away from disruptive innovation and activities that impact your short-term gainsYou focus on efciency and incremental improvement as you seek to hit your monthly or quarterly revenue targetsYou fear the impact that change might have upon your existing businessYou tend to keep your head down and focus on the work at hand, only discussing the future every once in a while You assume that all is stable and little is likely to disrupt your status quo Your long-term revenue planning is based upon past performance and assumptions of security 29. You are an adventuring organisation if: New ideas are aplenty andYou invest a great deal of thought,You are responsive and open toYou focus on exploringinnovation is strongtime, research, resource and nancethe changing environmentwhat you could do andinto tomorrows businesswhere you could goYou feel as though the quality of your ideas is not alwaysYou nd it difcult to createreected in their deliverystrategic alignment and driveYou struggle to deliver when faced with thecontinuous improvementreality of changes in demand Existing resources are not always exploited effectively You experiencecontinuouschange You have much strategic intent but little effective actionThe AdventurerExploring but not exploiting 30. The Conqueror Exploiting and ExploringYou are a conquering organisation if:You consistently have one eye on the future and the other on the present You maximise returns from your existing competences, capabilities and resourceswhile simultaneously exploring and adapting to the changing environment You place high value not only on organisational effectiveness but also on responsiveness You are equally skilled at exploring new opportunities and exploiting the opportunities you nd You have a strong focus on current gains and efciency but, at the same time, ensure you remain exible and well able to cope with expected and unexpected change You are nimble, adaptable and strategically aligned 31. The ZombieNeither Exploiting nor ExploringYou are a zombie organisation if: When you are really honest with yourself, you are strugglingand failingat both exploration and exploitation Your organisation continues to exist thanks to your historical success and latent demand but, in reality, you are becoming less and less effective over time You do not adequately exploit the resources you have at your disposal and neglect to maintain your current capabilities You fail to explore and adapt to your changing environment, resulting in a gradual (or sudden) decline in your ability to compete You feel as though youre living on borrowed time or scraping by on a wing and a prayer Youre concerned that signicant action will be needed to ensure you remain a viable concern 32. ?What do you want to be 33. ADVENTURERLowHighHighMINERLowThe Conqueror takes it all!EXPLORATIONClearly, the top right quadrant is the place to be...CONQUERORZOMBIESo where should you be?EXPLOITATION 34. CONQUERORZOMBIEMINERLowHighHow do you get there?LowEXPLORATIONHighADVENTURERIn reality, its not always a straightforward journey...EXPLOITATION 35. ADVENTURERIf youre an organisation with a long-standing heritage, you may have been comfortable as a miner for years. Be aware: you could nd yourselves rudely awoken by the competition, leading to a mad dash to adventure in a bid to stay alive.MINERLowHighLowOrganisations with heritageEXPLORATIONAs your ideas begin to develop and stabilise, you may become a minermaximising gains from your new found opportunity by exploiting the competences and resources youve worked so hard to cultivate.HighStart-ups are likely to begin as adventurers, looking for opportunities to exploit.CONQUERORZOMBIEEarlier stage businessesEXPLOITATION 36. ADVENTURERLowHighHighMINERLowAs an organisation with heritage No matter how good your organisation is at exploitation, one day change will be required to stay in the game.EXPLORATIONThe abilities to both explore and exploit need to be masteredeven if not simultaneously. As a start-up If you never develop an ability to implement and exploit, then no matter how brilliant your idea, business failure is likely to result at this early stage.CONQUERORZOMBIEIn either circumstance...EXPLOITATION 37. ADVENTURERAre resources tight? Its likely that, at least for a time, youll need to ip op between exploring and exploiting as you build strength. Either way... The quicker you start making changes, the greater your chances of survival and success!LowHighHighMINERLowDo you have resources available? You may be able to improve both exploration and exploitation simultaneously starting today!EXPLORATIONAdmission is the first step to recovery! Although it can be a wake up call to recognise that your organisation is a zombie, in most cases, all is not lost.CONQUERORZOMBIENo hope for zombies?EXPLOITATION 38. ?How are you going to get there 39. You need to be able to...VE RI DSWITCH CE AN AL B 40. Represent both dimensions at the topBuild a shared culture Ensure understanding at all levels of your organisation through clear goals and key priorities that are backed up by consistent communication.ExploitationCreate a leadership structure in which both exploration and exploitation activities have at least one advocate. Grant autonomy throughout but centralise strategic control.VE RI D Empower the individualEnable individuals to choose which activities to pursue in the course of their day-to-day work, giving employees a sense of ownership and responsibility for their own results.Stimulate your people to deliver high-quality results by balancing stretch with discipline and support with trust. Use performance management systems while simultaneously providing the social support and security needed for a job well done.Create a high performance contextExplorationBirkinshaw & Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Brieng. Markides & Chu (2009). Innovation through ambidexterity: how to achieve the ambidextrous organisation. In Costanzo & MacKay, eds. (2009). Handbook of research on strategy and foresight. Tushman & OReilly (1996). Ambidextrous organizations: managing evolutionary and revolutionary change. California Management Review, 38(4):8-30. 41. ...but always seek to reintegrateCH IT SWBeware: separation can lead to isolation and the new initiative may lose its way. Dont forget to integrate the old with the new.ExploitationIncremental/evolutionary change should be punctuated by discontinuous/revolutionary change. Dare to do both.Be prepared to undermine the coreDont be afraid to cannibalise your own business at times of industry transition remember when cassette moved to CD and disk to digital?Structural separation (e.g. by business unit or division) is sometimes essential to give a new initiative a safe, nurturing space with its own dedicated resource.Sometimes structural separation is useful and highly effective...Evolution and revolutionExplorationBirkinshaw & Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Brieng. Birkinshaw & Gibson (2004). Building ambidexterity into an organization. MIT Sloan Management Review, 45(4):47-55. Tushman & OReilly (1996). Ambidextrous organizations: managing evolutionary and revolutionary change. California Management Review, 38(4):8-30. 42. Manage contrary forcesBalance discipline with passion; freedom with constraint; safety with risk.See the bigger picture and make intelligent, balanced trade-offs. Allocate resources to both dimensions, shifting the balance as required.CE AN AL BExploitationFind win-win solutionsHigh levels of both exploration and exploitation are sometimes, but not always, benecial. If your rm is large and resource rich, you can afford to max out on both. For smaller, resource constrained rms, balance is key: dont overextend but instead seek equal balance in whatever measure you can.Balance trade-offsBalance or go for broke?Act creatively to nd solutions in which both exploration and exploitation benet. Allow the two to build upon one another instead of detract.ExplorationAndriopoulos & Lewis (2009). Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation. Organization Science, 20(4):696-717. Cao, Gedajlovic & Zhang (2009). Unpacking organizational ambidexterity: dimensions, contingencies, and synergistic effects. Organization Science, 20(4): 781-796. Smith & Tushman (2005). Managing strategic contradictions: a top management model for managing innovation streams. Organization Science, 16(5):522-536. 43. You need to embrace...TY UI IG B M ATENSION OX AD AR P 44. Build difference on a common foundation Ensure your organisation has a clear, shared vision that weaves a common thread through both exploration and exploitation.Leadership matters Explicitly hold tension and paradox at the top of your company. Foster a state of creative conict within your senior management team.Dare to do it all Take a both/and approach instead of an either/or. Integrate and differentiate. Maintain multiple (conicting) strategic agendas but articulate clear and differentiated goals for each.AMBIGUITY T E N S I O N PARA DOX Embrace it, dont fight it Resist the temptation to reach consensus too quickly. Recognise and use conict instead of trying to resolve it. Embrace the tension between old and new.Manage differently Use different KPIs and performance measures for new initiatives and core businessthe two are not the same.Markides & Chu (2009). Innovation through ambidexterity: how to achieve the ambidextrous organisation. In Costanzo & MacKay, eds. (2009). Handbook of research on strategy and foresight. Elgar. Tushman, Smith & Binns (2011). The ambidextrous CEO. Harvard Business Review. http://hbr.org/2011/06/the-ambidextrous-ceo/ Smith & Tushman (2005). Managing strategic contradictions: a top management model for managing innovation streams. Organization Science, 16(5):522-536. Smith, Binns & Tushman (2010). Complex business models: managing strategic paradoxes simultaneously. Long Range Planning.Make dynamic decisions Take an agile approach to decision making, continually shifting resources between the explorative and exploitative activities.Project 365 #74: 150313 Showing The Ropes by comedy_nose on Flickr: http://www.ickr.com/photos/comedynose/8560033771/ 45. Becoming a conqueror wont just happen by accident!Just as becoming a concert pianist doesnt happen overnight but requires hours of practice to strengthen and hone the skill of the less dominant hand.Creating a trulyambidextrousorganisation requires self-awareness and management awareness, a dedication to excellence and a willingness to take risks, all in thepursuitof building something great.Seiya Higashi, Pianist by Adam Chamness on Flickr: http://www.ickr.com/photos/adamchamness/5820307912/ 46. ?So, what are you waiting for 47. GT EO T! T I 48. STOCKERPAR TNERSHIPHi, Im Matt Stocker, Director of Stocker Partnership. Im always interested in exchanging ideas and working on interesting projects, so Id love to hear from you. You can connect with me on Twitter @mattstocker or email me at matt@stockerpartnership.com 49. STOCKERPAR TNERSHIPThe Stocker Partnership is a strategic innovation consultancyMatt StockerWe help organisations to create and exploit new opportunitiesDebbie StockerWERE NOT@mattstocker024 76 100 193 hello@stockerpartnership.com www.stockerpartnership.com@debbiestockerFollow us on LinkedIn Subscribe to our blog Sign up to our newsletterBIGBUT WE ARECLEVER Illustrations by Robin Boyd (www.robinboyd.co.uk), Stina Jones (stinajones.co.uk), and Matt Stocker