Corporate Explorer Fieldbook

CHAPTER 14Ambidextrous Organization: What It Is, When to Use It

Michael Tushman and Charles O’Reilly

SEPARATING EXPLORE FROM CORE

At some point in their journey, Corporate Explorers need to step outside the existing organization and be given freedom to operate. This means they need an ambidextrous organization – one that seeks to drive organic growth by separating units charged with exploratory innovation from those that run the core (exploitative) business. A growing number of organizations set out to become ambidextrous. Some organizations succeeded, others did not. We have analyzed these cases to identify the elements typically associated with success at ambidexterity. In this chapter, we will describe these success factors and use them to develop practical guidelines that could help managers design organizations in support of the work of Corporate Explorers. A Corporate Explorer can seek to influence to put these conditions in place, but most often a senior sponsor needs to take ownership for this work.

There are four factors favoring ambidextrous organizations that apply regardless of the specific business. While they are by no means sufficient, they are necessary; that is, attempts at ambidexterity are likely to fail without these four factors:

1. Strategic intent – A clear strategic ambition that justifies the very need for exploration, including the identification of organizational assets and capabilities that can be used for competitive advantage of the exploratory ...