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• W1485368420 abstract "Michael Tushman talks with Jim Euchner about the challenges of managing breakthrough innovation in established companies. Breakthrough innovation in established companies is particularly difficult, in part because breakthrough innovation requires a very different culture to sustain it than does incremental innovation around a core competency. This leaves businesses with the challenge of managing two very different businesses with very different cultures. Doing this well is what Michael Tushman and his collaborators call ambidextrous leadership. It requires new perspectives and skills in the senior leadership team, capabilities that Tushman discusses in this interview. JIM EUCHNER [JE]: I'd like to start with the concept of the ambidextrous organization. What do you mean by that? MICHAEL TUSHMAN [MT]: The fundamental idea--which has been around in the innovation field for a while--is that companies need to develop dynamic capabilities at the business unit level and at the corporate level to play two games at once. The first is to exploit the existing strategy and the second is to explore an uncertain future. Firms that do both well survive over time; firms that get stuck in either exploit or explore don't do well. That's now been pretty well substantiated in the literature. Our solution to the problem of what used to be called the productivity dilemma, and which also includes Clay Christensen's innovators' dilemma, is structural ambidexterity; companies need to separate the exploit franchise from the explore franchise. They need to be physically separate, culturally separate, with have separate finance functions, because they have completely different architectures for competencies and culture. The goal for the exploit crowd is to get better and better, to meet the numbers; the goal for the explore crowd is to figure out the future before your competitors do. You do that through making a bunch of mistakes, by failing forward, learning by doing, employing lean startups to very rapidly prototype and learn from your mistakes so that you discover the future before others do. Structural ambidexterity is keeping the past separate from the future. There are three hallmarks of structural ambidexterity: high differentiation, targeted integration where there's leverage, and really strong senior team integration. JE: You've talked about structural ambiguity and high differentiation. Can you talk more about what you mean by senior team integration? MT: In order for ambidexterity to work, you need to take advantage of synergies across the two worlds. Probably the biggest issue companies face is developing senior teams that can handle paradox, that can handle living in two different worlds--the world of the future and the world of the past--and can share resources and co-create both these worlds simultaneously. JE: Who needs to do this, and how do they do it? MT: That's an important aspect of the work on structural ambidexterity. Not everyone needs to live in both worlds; not everyone needs to make the trade-offs between explore and exploit. Most of the organization is exploiting, and some significant part of the organization--located someplace else is exploring. The only place that this tension is held is with the ambidextrous leadership team. I have seen different structures for this. Both the hub-and-spoke or leader-centric and the team structure can work. At Analog Devices, they had a leader-centric ambidextrous structure. The CEO was in the middle, and he interacted in one way with the exploit crowd and in a completely different way with the explore crowd. While those teams had a common stake in the system, they never actually had to work together. The other way is a team-centric ambidextrous structure. The essential parts of the ambidextrous team are the CEO, his exploit manager, his explore manager, and the CFO. Although both structures can work, I think that the more effective and more resilient way of managing ambidexterity is having senior teams that own the tension, and developing the capability in those teams to make the decisions that trade off assets between the explore and exploit businesses. …" @default.
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• W1485368420 date "2015-05-01" @default.
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• W1485368420 title "The Challenges of Ambidextrous Leadership: An Interview with Michael Tushman" @default.
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