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Craig Rispin CSP
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“Craig we’ve seen more change in the last 3 years
than in the last 30.”
Technology Changes Exponentially
Technology Changes Exponentially
People Think Linearly
People
Business Technology
Life SciencesWork/Life Shift A
cceleration
People
Business Technology
Life SciencesWork/Life Shift A
cceleration
Education Re-Engineering
Global Mobility
DigitalCustomers
End ofRetirement
Emerging Models
OutrageousOutsourcing
MarketingMegatrend
InnovationImperative
Speed & Size
Cloud Computing
Robots Rise
Coworking &Collaboration
Massively Mobile
SecurityScare
Big DataDeluge
Youth Unemployed
Internet of Things
TransparencyTrend
People
Business Technology
Life SciencesWork/Life Shift A
cceleration
Education Re-Engineering
Global Mobility
DigitalCustomers
End ofRetirement
Emerging Models
OutrageousOutsourcing
MarketingMegatrend
InnovationImperative
Speed & Size
Cloud Computing
Robots Rise
Coworking &Collaboration
Massively Mobile
SecurityScare
Big DataDeluge
Youth Unemployed
Internet of Things
TransparencyTrend
What was Sci-Fi Just a Few Years Ago...
Is Sci-Reality Today...
Has Another Sci-Fi Film Inspired the Next
Inventors?
3D Printing
Massively Mobile
"Today I run my business from my
phone, I could never have
imagined that a few years ago."
~ Marc Benioff - CEO of Salesforce.com
How Big is Mobile Today?
How Big is Mobile Today?
7B People in the World
How Big is Mobile Today?
7B People in the World
6.8B Mobile Subscribers
How Big is Mobile Today?
7B People in the World
6.8B Mobile Subscribers
1.5B 3G/LTE Subscribers
1.8 Billion Mobiles Sold in 2013
97%Phones per 100 Citizens
How Many Mobile Internet Devices in Your House?
The Future of Mobile is Massive!
Cloud Computing
Which Firm is the Largest Cloud
Computing Provider?
Outrageous Outsourcing
fiverr.com
Emerging Business Models
You’re holding a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises. It’s a book for the…
written byAlexander Osterwalder & Yves Pigneur
co-created byAn amazing crowd of 470 practitioners from 45 countries
designed byAlan Smith, The Movement
ACHIEVING ORGANIZATIONAL AMBIDEXTERITY USING MANAGEMENT CONTROL SYSTEMS
72
WHAT IS ORGANIZATIONAL AMBIDEXTERITY?The pursuit of two different modes of learning:
1. Exploitation = using current resources and capabilities in an efficient and reliable fashion to head in the same direction
2. Exploration = searching for , acquiring and developing new resources and capabilities to go in a new direction
AMBIDEXTERITY
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
EXPLOITATION EXPLORATION
Follow the rules and drive out the variance and slack. Break the rules and promote variance and slack.
Focus on serving existing customers and their needs. Serve new customers with new needs.
Manage and refine existing competences. Develop and lead new competences.
Optimize the organization for existing rules. Develop new organization system with new rules.
Make money now. Make money later.
AMBIDEXTERITY
WHY IS IT IMPORTANT?Firms, teams and individuals that attain an appropriate balance between exploration and exploitation will achieve superior performance over time.
‘Balance’ does not mean 50% exploitation and 50% exploration. It depends on your industry velocity (rate and direction of change)
Exploitation Exploration
Long
term
per
form
ance
Low
High
Mode of Learning
TWO APPROACHESStructural ambidexterity
– involves splitting exploitation and exploration into different organizational units (i.e., separate divisions, departments or teams)
Contextual ambidexterity
– the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit
(McCarthy & Gordon, 2011: 241)
CONTEXTUAL AMBIDEXTERITY
Involves creating an organizational context that inspires, guides and rewards people to pursue both exploitation and exploration behaviors.
But how do you create the context to allow yourself and others to juggle, toggle and be ambidextrous?
ANSWER = MANAGEMENT CONTROL SYSTEMS
The systems (rules, rewards, policies, practices, and tech) that managers use to direct and adjust the behaviors of employees to ensure organizational relevance, greatness and survival.
SIMONS ‘FOUR LEVERS OF CONTROL’
Control System Behavior Focus Outcome
Beliefs systems Communicate values and goals. Establish purpose and the activities to be performed.
Boundary systems Specify and enforce rules of the game. Define the activities to be avoided.
Diagnostic systems Determine and support targets. Perform the correct activities well.
Interactive systems Promote learning and exploration. Perform new activities.
“The balancing of exploitation and exploration tensions is much like riding a bike – it requires a continuous and irregular shifting of control system use over time."
(McCarthy & Gordon, 2011: 255)
ORGANIZATIONAL AMBIDEXTERITY
Craig Rispin CSP
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