creating the ambidextrous organization

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How Leaders Jump the Curve and Make Change Happen!John Pisapia, ProfessorFlorida Atlantic UniversityFounder, SLN

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3/26/2015Pisapia, J. 2009. The Strategic Leader

Whadda we going to do today?Get on the Same PageReview the Power of the CurveBuilding an Ambidextrous TrustBridgeUnderstand the Difference of being Mission Focused and Opportunity FocusedHow Lead by being Mission FocusedHow to Lead by being Opportunity Focused

3/26/2015Pisapia, J. 2009. The Strategic Leader

2The Power of the CurveThe Nature of Change3/26/2015Pisapia, J. 2009. The Strategic Leader3Why do we need to Lead Differently?The Power of the Curve43/26/2015

ExploitationExplorationDisruptive InnovationThe Strategic Leader Network

Mind The Gap4Context DrivenHambrick (1989) argues that strategic leadership occurs in an environment embedded in ambiguity, complexity, and informational overload. The ability to execute the statement of intent in such environments is dependent on realized performance improvements, resource availability, and the readiness of the organization to change. Returning to the concept of strategic inflection points (Burgelman & Grove, 1996), we suggest that SIPs create a kairotic moment in which the organization and its members are particularly receptive to charismatic, transformational, and visionary processes. It is during these kairotic moments that learning and change are possible if only the leader possesses the discernment to take notice and the wisdom to act. What is needed now is a better understanding of which leaders can take advantage of these SIPs as well as research that explores how these factors inuence the charismatic and transformational relationshipLord and Hall (1992) suggest that leadership effectiveness may hinge more on social intelligence and behavioral flexibility than other factors cognitive and behavioral complexity and social intelligence form the foundation for absorptive capacity, capacity to change, and managerial wisdom.What is the role of leadership in systems where change often emerges in unexpected ways? In complex systems leaders enable rather thancontrol the future. While traditional views of leadership focus leader responsibility for determining and directing the future through control mechanismsAs enablers leaders disrupt existing patterns and make sense of emerging events for othersConant and Ashbys (1970) principle of requisite variety, change agents are more likely to be successful when their mental models of change match the complexity of the change processes unfolding in their organization. Exploration includes things captured by terms such as search, variation, risk taking, experimentation, play, flexibility, discovery, innovation.Exploitation includes such things as refinement, choice, production, efficiency, selection, implementation, execution. Adaptive systems that engage in exploration to the exclusion of exploitation are likelyMarch and Simon (1958), dissatisfaction with existing conditions stimulates people to search for improved conditions, and people stop searching when a satisfactory result is found. Sustained organizational performance is rooted in exploiting existing competences and exploring new opportunities (He & Wong, 2004; Gibson & Birkinshaw, 2004

Life trajectory important inflection points caused bv fundamental industry dynamics technologies strategiesLearn from past, adapt to the present, and envision and create the future Learning and change are based upon either exploitation of core competencies or exploration for new opportunities (March, 1991).

Exploitation without exploration can lead to specialization and excess, to confidence and contentment, to dogma and ritual, to death. The ability of a firm to avoid the seduction of success and change, while maintaining performance, is a function of both its capacity to change and its ability to learn (Black & Boal, 1996; Boal & Hooijberg, 2000).tion3/26/2015Pisapia, J. 2009. The Strategic LeaderThe Lessons of the CurveIn the Gap, we must be Ambidextrous!3/26/2015Ian McCarthy 2015

Pursue two different modes of leading and learning:Exploitation = using current resources and capabilities in an efficient and reliable fashion to head in the same directionExploration = searching for, acquiring and developing new resources and capabilities to go in a new direction

3/26/2015Ian McCarthy 2015AMBIDEXTERITYEXPLOITATIONEXPLORATIONFollow the rules and drive out the variance and slack.Break the rules and promote variance and slack.Focus on serving existing customers and their needs.Serve new customers with new needs.Manage and refine existing competences.Develop and lead new competences.Optimize the organization for existing rules.Develop new organization system with new rules.Make money now.Make money later.

3/26/2015Ian McCarthy 2015WHY IS IT IMPORTANT?ExploitationExplorationLong term performanceLowHighMode of Leading and Learning

Premise: Organizations that attain an appropriate balance between exploration and exploitation will achieve superior performance over time.

Balance does not mean 50% exploitation and 50% exploration. It depends on the rate and direction of change.

8The Minds we Need 3/26/2015Pisapia, J. 2009. The Strategic LeaderLeaders must have the capability to understand and rapidly adapt to changes in their environment.

In the Gap! Unfortunately, We can't solve problems by using the same kind of thinking we used when we created them.

Think Different

Think Differently3/26/2015The phrase "Think Different" refers to what to think as opposed to how to thinKCreative thinking is defined in the dictionary of the American Psychological Association (Vanderbos, 2006) as mental processes leading to a new invention, solution, or synthesis in any area Creative ideas are both novel and valuable - original and useful ideas (Amabile, 1996; West, 2002).

innovation refers to the use of a new idea or method, whereas invention refers more directly to the creation of the idea or method itself.Innovation refers to the successful implementation of creative ideas or a capacity to improve existing products and/or processes which produce value to the organization is more than just having a creative idea. It requires selling the idea inside and outside the organization. By reorganizing available knowledge, facts, and information

Strategic thinking is about thinking centered on ends, strategies, and tactics. It is only meaningful in a context. The greater the capacity to use strategic thinking skills; the greater the ability to make consequential decisions about ends, strategies, and tactics. Great strategic thinkers have a systems perspective, are intent driven, creative, intuitive, integrative, and analytical10In the Gap we need :A mind that is curious, flexible, and wise ANDThe Thinking skills that make it possible to recognize Patterns, Make sense out of seemingly unrelated information. Enable us to switch from a strategic mindset -Why and What - to a tactical mindset -How and When - in a rapid and iterative process when appropriate.Pisapia, J. 2009. The Strategic Leader3/26/201511The Genesis of Strategic ThinkingCausal ReasoningAnalyticalCriticalLinearStrategic Thinking

AnalyticalCriticalSyntheticIntegrativeAdaptive InnovativeCreative ReasoningAdaptiveIntegrativeInnovativeTo Take the Strategic Thinking Questionnaire (STQ)3/26/2015Pisapia, J. 2009. The Strategic Leader

Causal Reasoning Strategic Reasoning Effectual ReasoningEnvironmentPredictive World. Predictive and Non Predictive Worlds. Non Predictive World.Ideas on the Future Attempt to predict the future. Attempt to find the future. Attempt to control future by creating itVision of the FutureAnalyze market to determine possible opportunities. Open to possibility that direction may change. Analyze means and resources to determine which opportunities to pursue. Way of ThinkingAnalytical and Critical Thinking. Strategic (i.e., analytical, critical, synthetic, creative, and effectual). Effectual, Creative, and Innovative Thinking.Approach to strategy Formulation and ImplementationFocus on gathering means to create desired effect. Stick to predetermined plan. Integrative, Interactive, Adapting and adjusting to environmental forces and opportunities. Risk-taking, innovation. Proactively focused on the possibilities current means allow.Strategy ProcessEvaluates predetermined strategy and implementation. Adapts strategy and implementation as needed and sees doing this successfully as more important than evaluation.Identifies and uses contingencies. Pays close attention to timing. 12Picture This

Pisapia, J. 2009. The Strategic Leader3/26/2015Creative ReasoningCausal ReasoningHighHighLowStrategic ThinkingManagerial ThinkingEntrepreneurial Thinking

3/26/2015Pisapia, J. 2009. The Strategic Leader

Pisapia, J. 2009. The Strategic Leader3/26/2015Thinking is not enoughThe ability to think is a necessary condition for effective leadership.

However, Leadership must inevitably be performed through action, not cognition

(Denison et al. (1995, p. 524).

We have a Plan!!3/26/2015Pisapia, J. 2009. The Strategic Leader

Now What?We have a Plan Now What

The Strategic Leader17

Making it Happen!Pisapia, J. 2009. The Strategic LeaderMission Focus

Opportunity FocusLeadership BehaviorEntrepreneurial BehaviorWe Have a Plan3/26/2015

Mission Focus stems from formalized structures such as plans.

Opportunity focus is spawned from flatter, more fluid organizationalstructures, and organizational focus is associatedwith more establish


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