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Block Building Task Identifies Distinct Groups of Left/Right-hand Choice Patterns After Unilateral Peripheral Nerve Injury

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The ambidextrous CEO.

Michael L Tushman¹, Wendy K Smith, Andy Binns

¹Harvard Business School, USA. mtushman@hbs.edu

Harvard Business Review

|July 1, 2011

Summary

To ensure long-term success, top management teams must lead ambidextrously. This involves fostering creative conflict between established and new business initiatives at the highest organizational levels.

Area of Science:

Business Strategy
Organizational Behavior
Innovation Management

Background:

Established businesses often prioritize existing operations over exploring new ventures, especially during economic downturns.
Allowing resource allocation conflicts to be resolved at lower management levels stifles innovation initiatives.
This can lead to core business units viewing new ventures as irrelevant or even threatening to the company's identity.

Purpose of the Study:

To investigate how top management teams can effectively balance resources between core business maintenance and speculative innovation.
To identify leadership strategies that promote long-term firm success through ambidextrous management.
To understand the role of senior leadership in fostering innovation within established organizations.

Main Methods:

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The study involved research on 12 top management teams in major companies.
Analysis focused on how these teams managed resource allocation between core and new business units.
Qualitative insights were gathered on leadership approaches to innovation and core business demands.

Main Results:

Firms thrive when senior teams lead ambidextrously, creating "creative conflict" between old and new business units.
Successful CEOs establish broad strategic aspirations with ambitious targets for both innovation and core growth.
Tension between innovation and core business demands is managed at the top, embracing inconsistency and multiple agendas.

Conclusions:

Ambidextrous leadership, characterized by managing creative tension at the senior level, is crucial for sustained firm success.
CEOs must actively lead resource allocation debates, avoiding delegation to middle management to prevent "feudal baronies."
Embracing inconsistency and pursuing multiple, even conflicting, agendas enables organizations to navigate the balance between stability and innovation.