Organisational ambidexterity is key to driving long-term growth and success within any business. We explore what organisational ambidexterity is, what it means for you, and how you can achieve it.

1. A SHORT GUIDE TO
ORGANISATIONAL
AMBIDEXTERITY
THE

2. KEY

3. TO

4. DRIVING

5. LONG-TERM

6. GROWTH

7. AND

8. SUCCESS
Written by Matt Stocker Debbie Stocker
Designed by Matt Stocker

9. HUMAN AMBIDEXTERITY
is defined as...
the ability to use the right
and left hands
equally well
Piano fingers by seriousbri on Flickr:
www.flickr.com/photos/seriousbri/4148739768/

10. Clearly, organisations don’t have hands...
Prosthetic hand mod by atomic-kitteh on Flickr: www.flickr.com/photos/atomic-kitteh/6655487057/

11. ...but that doesn’t stop them being ambidextrous
Prosthetic hand mod by atomic-kitteh on Flickr: www.flickr.com/photos/atomic-kitteh/6655487057/

12. Research has shown that ambidextrous businesses have...
ENHANCED
SUSTAINABILITY
REDUCED RISK
INCREASED
COMPETITIVE
ADVANTAGE
THE ABILITY TO
OUTPACE OTHERS
IMPROVED PERFORMANCE
PROFITABLE GROWTH
MORE SATISFIED
CUSTOMERS
ONGOING STRATEGIC
RENEWAL
MORE NEW PRODUCT
INTRODUCTIONS
REDUCED INERTIA
LONG-TERM SUCCESS
Ahuja Lampert (2001). Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough investions. Strategic Management Journal, 22:521-543.
Birkinshaw Gibson (2004). Building ambidexterity into an organization. MIT Sloan Management Review, 45(4):47-55.
Birkinshaw Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Briefing.
He Wong (2004). Exploration vs exploitation: an empirical test of the ambidexterity hypothesis. Organization Science, 15(4):481-494.
O’Reilly Tushman (2011). Organizational ambidexterity in action: how managers explore and exploit. California Management Review, 53(4):5-22.
Sarkees Hulland (2009). Innovation and efficiency: it is possible to have it all. Business Horizons, 52:45-55.
Venkatraman, Lee Iyer (2007). Strategic ambidexterity and sales growth: a longitudinal test in the software sector.Working Paper.

13. Organisational
Ambidexterity
IS MADE UP OF
2
DIMENSIONS

14. EXPLORATION
TO
Y GO
LDL
BO
In the pursuit of new knowledge and opportunities, you venture into the unknown.
You search for new ideas and possibilities. You learn and experiment. You adapt quickly to change.
You are proactive, innovative, and keen to avoid complacency. Critical conversations are encouraged.
EXPLOITATION
WRINGING OUT EVERY LAST DROP
Your activities are aligned and efficient. You are extremely effective at managing today’s business demands. You
use, extend and refine your existing knowledge. Existing products, capabilities and competences are
exploited. Existing advantages are continuously reinforced. Improvement and incremental innovation build
upon and enhance value for today.

15. An organisation that is adept at EXPLOITATION has
the following characteristics...
1
A laser-like focus on maximising returns
2
A fearsome ability to implement and execute plans
Operational excellence is driven throughout
3
—if improvements and refinements can be made, they will be made
4
Efficiency, margins and productivity are the order of the day
5
Incremental gains are constantly pursued
6
It functions like a well-oiled machine

16. 1
It creates room for diversity and discovery, both internally and externally
2
3
Staff are encouraged to experiment and play
Pioneering, radical and disruptive innovations are supported and pursued
4
5
Creativity, flexibility and adaptability are its modus operandi
Risks are taken in pursuit of game-changing outcomes and breakthrough growth
An organisation that is adept at EXPLORATION has the following
characteristics...

17. Professor Robert Duncan first coined the term
Organisational Ambidexterity in
1976 by Juho Holmi on Flickr:
http://www.flickr.com/photos/juhoholmi/3415061695/

18. Organisational ambidexterity depends on a company’s ability to...
CE
AN
AL
B
Exploitation
Exploration

19. and its ability to...
SWITCH
between the two as required
Exploitation
Exploration

20. ALANCE
B
Being able to do this within your organisation results in...
SWITCH
ial
nc
a
fin
ed e
as nc
re
Inc orma
rf
pe
ed sk
uc r i
ed nal
R
er
xt
e
ion
re isat
o an
r, m org
tte le
fi
A
ab
pt
da
a

21. For any organisation...
ADVENTURER
ZOMBIE
MINER
Low
High
Low
EXPLORATION
High
Exploration can be LOW to HIGH
CONQUEROR
at the same time as...
Exploitation being LOW to HIGH
EXPLOITATION

22. ADVENTURER
ZOMBIE
High
Organisational
Ambidexterity
Low
Matrix
EXPLORATION
High
MINER
Low
Introducing our....
CONQUEROR
EXPLOITATION
© 2012 Stocker Partnership Ltd

23. Resulting in
High
CONQUEROR
2
4
ZOMBIE
EXPLORATION
of
Low
4
1
ADVENTURER
MINER
3
1
Low
High
potential states
an organisation can be in
EXPLOITATION

24. Organisational Ambidexterity
‘Meet the crew’
The
Miner
Exploiting but
not exploring
The
Adventurer
Exploring but
not exploiting
The
Zombie
Neither exploring
nor exploiting
The
Conqueror
Exploring and
exploiting

25. Meet the Adventurer
Meet the Conqueror
Exploring but not exploiting
Exploring and exploiting
Superpower
Superpower
Seeks out out new ideas like
nobody’s business. Ninja at
spotting market shifts.
Unafraid of risk.
Explores the unknown while
wringing every last drop out of
today. Does both with equal
dexterity.
Meet the Zombie
Meet the Miner
Neither exploring nor exploiting
Exploiting but not exploring
Superpower
Superpower
Keeps going despite the odds.
Makes other businesses look
amazing by comparison!
Keeps head down and stays
focused on the immediate task
at hand, regardless of
distractions.

26. Meet the Adventurer
Meet the Conqueror
Exploring but not exploiting
Exploring and exploiting
Fatal flaw
Fatal flaw
Struggles to put ideas into practice.
Much strategic intent but little
effective action. Weak on driving
day-to-day performance.
Can sometimes overstretch in
both directions at once without
the strength or resources to
support this strategy.
Meet the Zombie
Meet the Miner
Neither exploring nor exploiting
Exploiting but not exploring
Fatal flaw
Fatal flaw
AKA the walking dead. Lives in
denial and on borrowed time.
Without significant action may
cease to exist at any moment.
Shies away from the future and
disruptive change. Vulnerable to
market shifts and innovative
competitors.

27. ?
So what are you

28. The Miner Exploiting but not exploring
You are a mining organisation if:
You are primarily focused on maximising returns from your
existing resources and the capabilities that you have now
You tend to shy away from disruptive innovation
and activities that impact your short-term gains
You focus on efficiency and incremental improvement as
you seek to hit your monthly or quarterly revenue targets
You fear the impact that change might
have upon your existing business
You tend to keep your head down and focus on the work at
hand, only discussing the future every once in a while
You assume that all is stable and little is likely to
disrupt your status quo
Your long-term revenue planning is based upon past
performance and assumptions of security

29. You are an adventuring organisation if:
New ideas are aplenty and
You invest a great deal of thought,
You are responsive and open to
You focus on exploring
innovation is strong
time, research, resource and finance
the changing environment
what you could do and
into tomorrow’s business
where you could go
You feel as though the quality of your ideas is not always
You find it difficult to create
reflected in their delivery
strategic alignment and drive
You struggle to deliver when faced with the
continuous improvement
reality of changes in demand
Existing resources are not always exploited effectively
You experience continuous change
You have much strategic intent but little effective action
The Adventurer
Exploring but not exploiting

30. The Conqueror
Exploiting and Exploring
You are a conquering
organisation if:
You consistently have one eye on the future and the other on the present
You maximise returns from your existing competences, capabilities and resources—while
simultaneously exploring and adapting to the changing environment
You place high value not only on organisational effectiveness but also on responsiveness
You are equally skilled at exploring new opportunities and exploiting the opportunities you find
You have a strong focus on current gains and efficiency but, at the same time, ensure
you remain flexible and well able to cope with expected and unexpected change
You are nimble, adaptable and strategically aligned

31. The Zombie
Neither Exploiting nor Exploring
You are a zombie organisation if:
When you are really honest with yourself, you are struggling—and failing—at both
exploration and exploitation
Your organisation continues to exist thanks to your historical success and latent
demand but, in reality, you are becoming less and less effective over time
You do not adequately exploit the resources you have at your disposal and
neglect to maintain your current capabilities
You fail to explore and adapt to your changing environment, resulting in a gradual
(or sudden) decline in your ability to compete
You feel as though you’re living on borrowed time or scraping by on a wing and a
prayer
You’re concerned that significant action will be needed to ensure you remain a
viable concern

32. ?
What do you want to be

33. ADVENTURER
Low
High
High
MINER
Low
The Conqueror takes it all!
EXPLORATION
Clearly, the top right quadrant is the
place to be...
CONQUEROR
ZOMBIE
So where should you be?
EXPLOITATION

34. CONQUEROR
ZOMBIE
MINER
Low
High
How do you get there?
Low
EXPLORATION
High
ADVENTURER
In reality, it’s not always a
straightforward journey...
EXPLOITATION

35. ADVENTURER
If you’re an organisation with a long-standing
heritage, you may have been comfortable as a
miner for years.
Be aware: you could find yourselves rudely
awoken by the competition, leading to a mad
dash to adventure in a bid to stay alive.
MINER
Low
High
Low
Organisations with heritage
EXPLORATION
As your ideas begin to develop and stabilise,
you may become a miner—maximising gains
from your new found opportunity by
exploiting the competences and resources
you’ve worked so hard to cultivate.
High
Start-ups are likely to begin as adventurers,
looking for opportunities to exploit.
CONQUEROR
ZOMBIE
Earlier stage businesses
EXPLOITATION

36. ADVENTURER
Low
High
High
MINER
Low
As an organisation with heritage
No matter how good your organisation is at
exploitation, one day change will be required
to stay in the game.
EXPLORATION
The abilities to both explore and exploit need
to be mastered—even if not simultaneously.
As a start-up
If you never develop an ability to implement
and exploit, then no matter how brilliant your
idea, business failure is likely to result at this
early stage.
CONQUEROR
ZOMBIE
In either circumstance...
EXPLOITATION

37. ADVENTURER
Are resources tight?
It’s likely that, at least for a time, you’ll need
to flip flop between exploring and
exploiting as you build strength.
Either way...
The quicker you start making changes, the
greater your chances of survival and
success!
Low
High
High
MINER
Low
Do you have resources available?
You may be able to improve both
exploration and exploitation simultaneously
—starting today!
EXPLORATION
Admission is the first step to recovery!
Although it can be a wake up call to
recognise that your organisation is a
zombie, in most cases, all is not lost.
CONQUEROR
ZOMBIE
No hope for zombies?
EXPLOITATION

38. ?
How are you going
to get there

39. You need to be able to...
VE
RI
D
SWITCH
CE
AN
AL
B

40. Represent both dimensions at the top
“
“
“
Build a shared culture
Ensure understanding at all levels of your
organisation through clear goals and key priorities
that are backed up by consistent communication.
Exploitation
Create a leadership structure in which both exploration
and exploitation activities have at least one advocate. Grant
autonomy throughout but centralise strategic control.
VE
RI
D
“
Empower the individual
Enable individuals to choose which activities to
pursue in the course of their day-to-day work, giving
employees a sense of ownership and responsibility
for their own results.
“
“
Stimulate your people to deliver high-quality results by
balancing stretch with discipline and support with trust. Use
performance management systems while simultaneously
providing the social support and security needed
for a job well done.
“
“
Create a high
performance context
Exploration
Birkinshaw Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Briefing.
Markides Chu (2009). Innovation through ambidexterity: how to achieve the ambidextrous organisation. In Costanzo MacKay, eds. (2009). Handbook of research on strategy
and foresight.
Tushman O’Reilly (1996). Ambidextrous organizations: managing evolutionary and revolutionary change. California Management Review, 38(4):8-30.

41. ...but always seek
to reintegrate
CH
IT
SW
Beware: separation can lead to isolation and
the new initiative may lose its way. Don’t forget
to integrate the old with the new.
“
“
Exploitation
Incremental/evolutionary change should be
punctuated by discontinuous/revolutionary
change. Dare to do both.
“
Be prepared to
undermine the core
Don’t be afraid to cannibalise your own
business at times of industry transition—
remember when cassette moved to CD and
disk to digital?
“
“
“
Structural separation (e.g. by business unit or
division) is sometimes essential to give a
new initiative a safe, nurturing space with its
own dedicated resource.
“
“
Sometimes structural separation is
useful and highly effective...
Evolution and revolution
Exploration
Birkinshaw Gibson (n.d.). The ambidextrous organisation. Advanced Institute of Management Research: Executive Briefing.
Birkinshaw Gibson (2004). Building ambidexterity into an organization. MIT Sloan Management Review, 45(4):47-55.
Tushman O’Reilly (1996). Ambidextrous organizations: managing evolutionary and revolutionary change. California Management Review, 38(4):8-30.

42. Manage
contrary forces
“
“
Balance discipline with passion;
freedom with constraint; safety
with risk.
“
See the bigger picture and make intelligent, balanced
trade-offs. Allocate resources to both dimensions,
shifting the balance as required.
CE
AN
AL
B
Exploitation
Find win-win solutions
“
“
“
“
High levels of both exploration and exploitation are sometimes, but
not always, beneficial. If your firm is large and resource rich, you can
afford to max out on both. For smaller, resource constrained firms,
balance is key: don’t overextend but instead seek equal balance in
whatever measure you can.
Balance trade-offs
“
Balance or go for broke?
Act creatively to find solutions in which both
exploration and exploitation benefit. Allow the two
to build upon one another instead of detract.
Exploration
Andriopoulos Lewis (2009). Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation. Organization Science,
20(4):696-717.
Cao, Gedajlovic Zhang (2009). Unpacking organizational ambidexterity: dimensions, contingencies, and synergistic effects. Organization Science, 20(4): 781-796.
Smith Tushman (2005). Managing strategic contradictions: a top management model for managing innovation streams. Organization Science, 16(5):522-536.

43. You need to embrace...
TY
UI
IG
B
M
A
TENSION
OX
AD
AR
P

44. Build difference on a common
foundation
Ensure your organisation has a
clear, shared vision that weaves a
common thread through both
exploration and exploitation.
Leadership matters
Explicitly hold tension and paradox
at the top of your company. Foster
a state of creative conflict within
your senior management team.
Dare to do it all
Take a ‘both/and’ approach instead
of an ‘either/or’. Integrate and
differentiate. Maintain multiple
(conflicting) strategic agendas but
articulate clear and differentiated
goals for each.
AMBIGUITY T E N S I O N PARA
DOX
Embrace it, don’t fight it
Resist the temptation to reach
consensus too quickly. Recognise
and use conflict instead of trying to
resolve it. Embrace the tension
between old and new.
Manage differently
Use different KPIs and performance
measures for new initiatives and
core business—the two are not the
same.
Markides Chu (2009). Innovation through ambidexterity: how to achieve the ambidextrous organisation. In Costanzo MacKay, eds. (2009). Handbook of research on strategy and foresight. Elgar.
Tushman, Smith Binns (2011). The ambidextrous CEO. Harvard Business Review. http://hbr.org/2011/06/the-ambidextrous-ceo/
Smith Tushman (2005). Managing strategic contradictions: a top management model for managing innovation streams. Organization Science, 16(5):522-536.
Smith, Binns Tushman (2010). Complex business models: managing strategic paradoxes simultaneously. Long Range Planning.
Make dynamic decisions
Take an agile approach to decision
making, continually shifting
resources between the explorative
and exploitative activities.
Project 365 #74: 150313 Showing The Ropes by comedy_nose on Flickr:
http://www.flickr.com/photos/comedynose/8560033771/

45. Becoming a conqueror won’t just happen by accident!
Just as becoming a concert pianist doesn’t
happen overnight but requires hours of
practice to strengthen and hone the skill of
the less dominant hand.
Creating a truly ambidextrous organisation
requires self-awareness and management
awareness, a dedication to excellence and a
willingness to take risks, all in the pursuit of
building something great.
Seiya Higashi, Pianist by Adam Chamness on Flickr:
http://www.flickr.com/photos/adamchamness/5820307912/

46. ?
So, what are you waiting for

47. G
T
E
O
T
!
T
I

48. STOCKER
PAR TNERSHIP
Hi, I’m Matt Stocker, Director of Stocker Partnership.
I’m always interested in exchanging ideas and working on interesting
projects, so I’d love to hear from you.
You can connect with me on Twitter @mattstocker or email me at
matt@stockerpartnership.com

49. STOCKER
PAR TNERSHIP
The Stocker Partnership
is a strategic innovation
consultancy
Matt Stocker
We help organisations to
create and exploit new
opportunities
Debbie Stocker
WE’RE NOT
@mattstocker
024 76 100 193
hello@stockerpartnership.com
www.stockerpartnership.com
@debbiestocker
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Illustrations by Robin Boyd (www.robinboyd.co.uk), Stina Jones (stinajones.co.uk), and Matt Stocker