Many executives have identified that the organizations they manage do not follow management models that are appropriate for today’s times. In an attempt to update the company, managers are in a real race against time.
The result of this is not very positive. Executives are faced with the implementation of ineffective action plans, ideas that are already outdated when put into practice, and internal bureaucratic obstacles.
The absence of an agile methodology and adequate innovation processes leaves the company stuck in traditional and outdated management. On the other hand, without maintaining the current core business, the company does not generate revenue that keeps it active.
In this context of uncertainty, what would be more important? Prioritizing the maintenance of the company’s main asset or investing in trends that promise high demand?
The answer is simple: the company needs to be prepared to exercise Organizational Ambidexterity, that is, to act simultaneously on two fronts. Learn more about this subject.
What is Organizational Ambidexterity?
Although the term organizational brother cell phone list emerged around the 1970s, it has only become more widespread in recent times. Expanding knowledge about the term is so necessary that major universities are offering specialization courses to train professionals in ambidextrous business management.
As proposed by authors Michael L. Tushman and Charles A. O’Reilly, the definition of the term would be “the ability to simultaneously pursue incremental and discontinuous innovation – hosting multiple contradictory structures, processes and cultures within the same company”.
In other words, Organizational Ambidexterity refers to the balance that a company must have in order to support two work fronts at the same time, while maintaining the dynamism required on each side. The term is an analogy to the ability that a person has to use both hands with equal competence. It stands out, especially, in writing.
Now bringing it to managerial reality, Organizational Ambidexterity is the balance of the company’s movement in providing growth for the current business while exploring new opportunities.
Exploration and Exploitation
In an article titled Exploration and Exploitation in Organizational Learning , from 1991, author James G. March reflects on the two organizational drivers: Exploitation and Exploration. He points out that hybrid work model: is your company ready for the new collaboration format? prefer to only exploit, because it presents short-term results. While exploration does not seem to be as interesting because it delivers long-term deliveries. However, March comments that this decision to only exploit can be self-destructive over time, since both drivers (exploitation and exploration) are important for the future of the company.
Let’s go to the definitions:
Exploit
It is not a very common term, but it refers to the movement of reusing something that already exists. In the business world, it is the refinement of products and services that are already established in the company. It is an incremental innovation. It involves doing the same thing well for a long time.
Explore
Exploration, through experiments, allows for new discoveries. In the business world, it refers to the opportunity to penetrate areas in which the australia database directory has no control. These are unknown markets, but they have great potential for growth. This is disruptive innovation. It involves risks in decision-making.
in summary
Companies must focus on both sides of the scale to maintain balance. After all, simply innovating is not enough, but stagnation leads to bankruptcy.
In this case, exploration is the learning that leads to competitive advantage. However, it requires research and discovery of something new, not validated, and therefore involves risk. In exploitation, the company seeks to satisfy the needs of its customers. It improves the experience they have when consuming the current product or service. However, there is no planning for future actions.