Building Ambidexterity Into an Organization

J. Birkinshaw; C. Gibson
Summary
Adaptability:

The ability to move quickly toward new opportunities to adjust volatile markets and
avoid self-satisfaction

Alignment:

A clear sense of how value is being created in the short-term and how activities should
be coordinated and streamlined to deliver that value

Both adaptability and alignment must be mastered to guarantee long-term success

Referred to as ambidexterity

It is difficult to find the right balance between the two

Too much focus on alignment:
good short-term results, but changes in industry will blindside you
Too much focus on adaptability: Building tomorrows business at the expenses of todays

Two Forms of Ambidexterity

Structural Ambidexterity:

Create separate structures for alignment and adaption-oriented activities,

respectively
Decision on split is made at the top of the organization

Structural ambidexterity is necessary

The two sets of activities are so different that they cannot effectively coexist
BUT: Separation can also lead to isolation (of a department)

Contextual Ambidexterity:

concept in which individual employees make the choice between alignmentoriented and adaption-oriented activities in the context of their day-to-day
work

Business units that are either solely aligned or adaptive

Business unit that is ambidextrous

Employees gave clear orders and are rewarded

accordingly

Systems and structures are more flexible

Employees use own judgment to divide their time
between adaption/alignment oriented activates

Contextual and structural ambidexterity differ in many ways but are best viewed as complements

Contextual Ambidexterity
4 behaviors identified in ambidextrous individuals:
1.

They take the initiative and are alert to opportunities beyond the confines of their own jobs

2.

The are cooperative and seek out opportunities to combine their efforts with others

3.

They are brokers, looking to build internal linkages

4.

They are multi-taskers who are comfortable wearing more than one hat

Commonalities between the 4 attributes:

All employees act outside the narrow limits of their job and take actions in the interest of the firm
All employees are sufficiently motivated and informed to act spontaneously (dont always seek permission)
All employees encourage action that involves adaption to new opportunities
Yet, action is always clearly aligned with the overall strategy of the business

An individuals ability to exhibit ambidexterity is determined by the organizational context in which he

operates

Contextual Ambidexterity at the Organizational Level

The collective orientation of the employees toward the simultaneous pursuit of alignment & adaptability
Manifested in the unwritten routines that develop on organizations
Potentially important capability for contributing to long-term performance
Analogous to the concept of market orientation (=the collective orientation of people throughout a business
toward the gathering interpretation of market knowledge)

Building Contextual Ambidexterity

Context:

4 attributes interact to define an organizations context

Stretch, discipline, support & trust
Create 2 dimensions of organizational context

Support & Trust

The often invisible set of stimuli and pressures that motivate people to act in a certain way
Shaped by top managers in organizations through systems, incentives, & controls put in place

#Stretch & Discipline

Performance Measurement:

Stimulates people to deliver high-quality results and make them accountable

for their actions

Social Support:

Providing people with the security and latitude they need to perform

Mutually reinforcing
High-Performance Organizational Context:

Gives rise to a truly ambidextrous organization

Burnout Context:

Depersonalized, individualistic & authority-driven nature

Ambidexterity is difficult to achieve

Country-Club Context:

Employees benefit from a collegial environment but rarely

perform to their potential

Low-performance Organizational Context:

Employees are unlikely to be either aligned or adaptive

Creating a High-Performance Organizational Context

Performance management & social support dont directly create high performance
They shape the individual and collective behaviors that enable ambidexterity over time
There is no single pathway to ambidexterity
There is no single leadership model for ambidextrous organizations
2

Pathways to Ambidexterity
There are 5 key lessons for executives seeking to build an ambidextrous organization:
1. Diagnose your own organizational context
o Discover where it currently stands in terms of performance management & social support
2. Focus on few levers, and employ them consistently
o Consistency is crucial because organizational context does not create high performance on its own
Enables the individual level-ambidexterity that leads to high performance over time
3. Build understanding at all levels of the company
o Message has to be disseminated clearly & consistently throughout the organization
Then organizational context can be effective in creating ambidexterity
4. View Contextual Ambidexterity and Structural Ambidexterity as Complements
o Units who focused to much on separation lacked sufficient connective tissue with the core business
o Structural separation should be temporary in order to keep in mind the aim of the whole business
The eventual goal should be reintegration with the mainstream organization
5. View Contextual Ambidexterity Initiatives as driving leadership not as being leadership-driven
o Leadership becomes a characteristic displayed by everyone in the organization
o The goal is to allow leadership to emerge from the organization at all levels