TOPIC

Sustainability from viewpoint Ambidexterity,

Leadership and Organizational Learning
Course :
Session #D1332
12 and Special
13 Topics
Ambidextrous Organization

Compilation from many source

Andrew Davies_Professor Management of Projects, The

Bartlett Faculty of the Built Environment_School of
Construction and Project Management_Adjunct Professor,
Department of Leadership and Organizational Behaviour, BI
Strategic Knowledge Management-Two enterprises Bo Cai
Min Christine R48951143
 The Concepts of Exploration &
Exploitation
A central concern of studies of adaptive processes is the
relation between the exploration of new possibilities and
the exploitation of old certainties (in organizational
learning).
Exploration includes things captured by terms such as
search, variation, risk taking, experimentation, play,
flexibility, discovery, innovation.
Exploitation includes such things as refinement,
choice, production, efficiency, selection,
implementation, execution.
March, 1991, Exploration and Exploitation in Organizational learning, Organization Science,
V2, p71.
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 The Concepts of
Exploration & Exploitation
They are in terms of (or defined as)
Actions (Behaviors) ?
Capabilities ?
Norms (Culture, Climate) ?
Processes ?
Strategies ?
Structures (Functions) ?

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 The Concepts of
Exploration & Exploitation
Exploration implies firm behaviors characterized
by search, discovery, experimentation, risk
taking and innovation, while exploitation
implies firm behaviors characterized by
refinement, implementation, efficiency,
production and selection.

He & Wong, 2004, Exploration vs. Exploitation: An Empirical Test of the Ambidexterity
Hypothesis, Organization Science, V15, p481.
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 The Concepts of
Exploration & Exploitation
Exploration and exploitation require substantially
different structures, processes, strategies, capabilities,
and cultures to pursue and may have different impacts
on firm adaptation and performance (He & Wong, 2004).
Exploration is associated with organic structures,
loosely coupled systems, path breaking,
improvisation, autonomy and chaos, and emerging
markets and technologies.
Exploitation is associated with mechanistic
structures, tightly coupled systems, path
dependence, routinization, control and bureaucracy,
and stable markets and technologies
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 The Concepts of
Exploration & Exploitation
The returns associated with exploration are
more variable and distant in time, while the
returns associated with exploitation are more
certain and closer in time (He & Wong, 2004).
In other words, explorative firms generate
larger performance variation by
experiencing substantial success as well as
failure, while exploitative firms are likely to
generate more stable performance.

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 The Concepts of Balance
Maintaining an appropriate balance between
exploration and exploitation is a primary factor
in system survival and prosperity (March, 1991).
Firms need to achieve a balance between
exploration and exploitation to achieve superior
performance (Tushman and OReilly, 1996).

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 The innovation balancing act

Pressures to innovate confront businesses as well as people

with another demanding balancing act: keeping up with the
activities we are already committed to, to reap the benefits
of our investment in them, while at the same time starting
new activities that will be of benefit in the future. While
caught in the mainstream, we must also generate
newstreams
Rosabeth Moss Kanter When Giants Learn to Dance
(1990)

March (1990)
Exploratory learning
Exploitative learning
 Types of projects
Mainstream projects
Transfer of capabilities across similar projects
Support the momentum behind a companys
existing business
Focused on existing customers needs and
established technologies
Existing business develops a
reputation for doing what it does
best, repeats certain types of projects
by exploiting specific products,
contingencies and programmes
(Mintzberg 1983:27).
Rosabeth Moss Kanter (1990) When Giants Learn to Dance
Newstream projects
Innovation and renewal of capabilities
No experience base
Breakthrough initiatives in technologies,
products, processes, and services
Breakout into new technologies and
markets is led by:
Breakthrough project (Tushman &
OReilly, 2004)
 Organising for breakthroughs

Most successful enterprises are adept at refining their

current offerings, but they falter when it comes to
pioneering radically new products and services
OReilly and Tushman (2004) The Ambidextrous
Organization, Harvard Business Review

Two types of organisational units:

Exploitative units: make steady improvements in
existing business incremental innovations
Exploratory units: breakthrough projects radical
innovations beyond current products or markets
Functional designs Cross-functional teams
integrate teams into the existing operate within the established organisation but
organisational and management structure outside the existing management hierarchy
General Manager General Manager

Mfg Sales R&D Mfg Sales R&D

Emerging Business
Unsupported teams
are set up outside the established organisation and
management hierarchy
General Manager

Mfg Sales R&D Emerging

Business
 Ambidextrous organisation
establish project teams that are structurally independent units, each
having its own processes, structures and cultures, but are integrated
into the existing management hierarchy

General Manager

Existing Emerging
Business Business

Mfg Sales R&D Mfg Sales R&D

 Scope of ambidexterity

Alignment of: Exploitative Business Exploratory Business

Strategic intent cost, profit innovation, growth
Critical tasks operations, efficiency, adaptability, new products,
incremental innovation breakthrough innovation
Competencies operational entrepreneurial
Structure formal, mechanistic adaptive loose
Controls, rewards margins, productivity milestones, growth

Culture efficiency, low risk, quality, risk taking, speed, flexibility,

customers experimentation
Leadership role authoritative, top-down visionary, bold

Ambidextrous Leadership
Different alignments held together through senior-team integration, common
vision and values, and common senior-team rewards
Topics
 Reference(s) as Consideration
Yet, it is not the only Reference for this topic

Those references are listed in the next several slides.

The CHOSEN References have to be transformed as:
a. Class Discussion, and Case Presentation
b. Individual and Team Assignment
c. Paper Writing
All of those a,b,c aspects are synergized within the
INDUSTRIAL ENGINEERING Disciplines, in at least one of the
Supply Chain, Manufacturing and Services.
Yet, The Faculty Members and Students, are encourage to widen the Scope of
Discussion within Multidisiplinary spirit, and in Indonesian Context.
 Several Open Accesses ( FREE ) References, are
available in the following website, but not limited to:

a. Website of Library Bina Nusantara

b. Website of Perpustakaan Nasional Republik
Indonesia ( PNRI )
NOTE: You need to read the whole Journals,
And NOT ONLY the except in this slide.
Thus, It is suggested that you search it through
Website of Library Binus and PNRI
NOTE: You need to read the whole Journals,
And NOT ONLY the except in this slide.
Thus, It is suggested that you search it through
Website of Library Binus and PNRI
Learning Outcomes
 Referring to Course Description, the keywords are the
Special Topics in Supply Chain, Manufacturing and
Service Industry; then, this course covers the
application in those three Industries.

Furthermore, the other important keywords are:

THEORETICAL and EMPIRICAL Aspects.
 The Mentioned THEORETICAL, can be obtained from
prior semesters that student have learned about all
those Supply Chain, Manufacturing and Service
Industry.

Meanwhile, the EMPIRICAL Aspects, can be obtained

from students exposures to any field observation
and study in Internship (Kerja Praktek), and/or Final
Project ( Tugas Akhir/Skripsi )
Teaching and Learning
Strategies
 Referring to Teaching and Learning Studies,
This courses emphasize all those 5 activities.

All those 5 activities, require STUDENTS to be

proactive and read several references BEFORE the
class begin, involving several PREPARATIONS in
which STUDENTS have to prepare as individual
and/or as a Team.

Those STUDENTS preparation will enrich all

activities in Teaching and Learning Studies.

The detail on the depth and the width of the

preparation, are guided by the FACULTY MEMBER
that teaches this course; and according to the
FEEDBACKS from Both Faculty and Students.
 The references that need to be prepared by
STUDENTS, are the following, but not limited to:
a. INTERNATIONAL JOURNALS, ranging from 2010
until 2015.
b. Supporting classical Journals, from years before
2010.
c. Textbook(s), Handbook(s)
d. References that are provided by Faculty Member
e. References that are proposed by Students