Ambidexterity
Ambidexterity
Leaders must transform the core while building the new.
Leaders must transform the core while building the new.
We help leaders build new businesses with the disciplines they need while sustaining the core and drawing on its strengths.
We help leaders build new businesses with the disciplines they need while sustaining the core and drawing on its strengths.
The company needs to deliver today and develop new sources of growth.
The company needs to deliver today and develop new sources of growth.
The core and a new business face different demands.
The core and a new business face different demands.
The core must deliver reliable performance. A new business must learn which customers, propositions and economics can support growth. Applying the same investment criteria and measures to both can prevent the new business from developing; separating it completely can deny it the assets that make the opportunity distinctive.
The core must deliver reliable performance. A new business must learn which customers, propositions and economics can support growth. Applying the same investment criteria and measures to both can prevent the new business from developing; separating it completely can deny it the assets that make the opportunity distinctive.
Ambidexterity places responsibility for managing these differences with senior leadership. The work concerns where to separate and where to integrate, and how leaders make resource decisions across both.
Ambidexterity places responsibility for managing these differences with senior leadership. The work concerns where to separate and where to integrate, and how leaders make resource decisions across both.
We determine what the new business needs to do differently and where it must remain connected.
We determine what the new business needs to do differently and where it must remain connected.
A new business may need different measures, skills and investment disciplines because its customers and economics are still being tested. We work with leaders to specify these requirements and the organizational arrangements that support them. The design also identifies which assets of the core matter to the opportunity and what commitments are needed to make them available.
A new business may need different measures, skills and investment disciplines because its customers and economics are still being tested. We work with leaders to specify these requirements and the organizational arrangements that support them. The design also identifies which assets of the core matter to the opportunity and what commitments are needed to make them available.
Leadership decisions must account for both learning and current performance. Evidence from testing informs when to commit more resources, change the approach or stop. Senior leaders retain responsibility for resolving conflicts over customers, talent, funding and attention, including when the core has legitimate reasons to protect its own commitments.
Leadership decisions must account for both learning and current performance. Evidence from testing informs when to commit more resources, change the approach or stop. Senior leaders retain responsibility for resolving conflicts over customers, talent, funding and attention, including when the core has legitimate reasons to protect its own commitments.
Senior leadership holds the two agendas together.
Senior leadership holds the two agendas together.
A separate unit does not resolve the tension by itself. Leaders need forums and disciplines for addressing conflicting priorities while maintaining a coherent enterprise strategy.
A separate unit does not resolve the tension by itself. Leaders need forums and disciplines for addressing conflicting priorities while maintaining a coherent enterprise strategy.
Our work draws on Michael Tushman and Charles O’Reilly’s research on organizational ambidexterity. Client teams apply the ideas to the decisions and relationships within their own business.
Our work draws on Michael Tushman and Charles O’Reilly’s research on organizational ambidexterity. Client teams apply the ideas to the decisions and relationships within their own business.
Ambidexterity is the ability to sustain the core business while developing new businesses.
Ambidexterity is the ability to sustain the core business while developing new businesses.
The core and emerging businesses need different ways of working. Senior leaders create the conditions for each to succeed and decide where connections between them create an advantage.
The core and emerging businesses need different ways of working. Senior leaders create the conditions for each to succeed and decide where connections between them create an advantage.
Senior leaders hold a shared strategic ambition.
Senior leaders hold a shared strategic ambition.
They commit resources, judge progress and resolve trade-offs across the core and new businesses.
They commit resources, judge progress and resolve trade-offs across the core and new businesses.
The core delivers reliable performance.
The core delivers reliable performance.
It improves established products, operations and customer relationships, with clear commitments on earnings and delivery.
It improves established products, operations and customer relationships, with clear commitments on earnings and delivery.
New businesses test a path to growth.
New businesses test a path to growth.
They test customer needs, propositions and economics, with investment and measures suited to what is still uncertain.
They test customer needs, propositions and economics, with investment and measures suited to what is still uncertain.
Connections to customers, expertise and other core assets are designed deliberately.
Connections to customers, expertise and other core assets are designed deliberately.
A shared ambition explains why the company needs both businesses.
A shared ambition explains why the company needs both businesses.
Leaders explain why the company needs both, how each contributes and which commitments they are prepared to make.
Leaders explain why the company needs both, how each contributes and which commitments they are prepared to make.
Different demands require different organizational arrangements.
Different demands require different organizational arrangements.
The new business may need its own people, skills, incentives and culture. Its progress must be assessed against evidence appropriate to its stage of development.
The new business may need its own people, skills, incentives and culture. Its progress must be assessed against evidence appropriate to its stage of development.
Separation and connection must be designed together.
Separation and connection must be designed together.
Leaders decide which activities need autonomy and which core assets the new business needs to access. Those relationships require explicit commitments from both sides.
Leaders decide which activities need autonomy and which core assets the new business needs to access. Those relationships require explicit commitments from both sides.
The senior team takes responsibility for the tensions.
The senior team takes responsibility for the tensions.
Conflicts over funding, customers and talent cannot all be settled within either business. Senior leaders make the trade-offs and uphold the decisions together.
Conflicts over funding, customers and talent cannot all be settled within either business. Senior leaders make the trade-offs and uphold the decisions together.
Building a new business also means changing the organization around it.
Building a new business also means changing the organization around it.
The work combines two strands. Innovation develops and tests the business opportunity. Organizational change establishes the ambition, learning and leadership commitments needed to carry it through.
The work combines two strands. Innovation develops and tests the business opportunity. Organizational change establishes the ambition, learning and leadership commitments needed to carry it through.
Innovation develops the business.
Innovation develops the business.
Customer discovery, business experiments and organization design build the evidence and capabilities needed for growth.
Customer discovery, business experiments and organization design build the evidence and capabilities needed for growth.
Organizational change enables it to develop.
Organizational change enables it to develop.
A clear ambition, a willingness to learn and leaders who mobilize people and resources support the work throughout.
A clear ambition, a willingness to learn and leaders who mobilize people and resources support the work throughout.
Leaders make different decisions as an opportunity develops.
Leaders make different decisions as an opportunity develops.
Ideate
Ideate
Decide which opportunities deserve investigation.
Decide which opportunities deserve investigation.
Define the growth ambition, identify customer problems and develop business concepts. Make assumptions explicit so the team knows what it needs to learn.
Define the growth ambition, identify customer problems and develop business concepts. Make assumptions explicit so the team knows what it needs to learn.
Incubate
Incubate
Decide what the evidence justifies.
Decide what the evidence justifies.
Test the value proposition and revenue model through experiments. Use the findings to invest further, learn more or stop.
Test the value proposition and revenue model through experiments. Use the findings to invest further, learn more or stop.
Scale
Scale
Build the organization the business now requires.
Build the organization the business now requires.
Put leadership, skills, structure and culture in place for sustained growth. Secure the commitments and core relationships needed to move beyond experiments.
Put leadership, skills, structure and culture in place for sustained growth. Secure the commitments and core relationships needed to move beyond experiments.
These are disciplines leaders revisit as evidence develops. Scaling can expose assumptions that require further testing.
These are disciplines leaders revisit as evidence develops. Scaling can expose assumptions that require further testing.
Different leaders carry distinct responsibilities.
Different leaders carry distinct responsibilities.
Senior leaders own both agendas.
Senior leaders own both agendas.
They make choices across the portfolio, protect the conditions each business needs and resolve competing commitments.
They make choices across the portfolio, protect the conditions each business needs and resolve competing commitments.
Explore managers develop the new business.
Explore managers develop the new business.
They lead experiments, build customer understanding and assemble support across the company as the opportunity develops.
They lead experiments, build customer understanding and assemble support across the company as the opportunity develops.
Innovation leaders connect the work across the company.
Innovation leaders connect the work across the company.
They establish methods, support the teams and bring decisions that require senior attention to the right forum.
They establish methods, support the teams and bring decisions that require senior attention to the right forum.
We help your leadership team make these choices and apply the methods to your business, building your team’s capability to lead the work.
We help your leadership team make these choices and apply the methods to your business, building your team’s capability to lead the work.