New Business Growth & Governance

Ambidextrous Organization

An ambidextrous organization is one that can simultaneously exploit its established core business and explore new, uncertain ones — running each under the operating model it actually needs rather than forcing both into one. In practice that means institutionalizing tailored systems of governance for exploratory businesses, separating them structurally from the core, and establishing formal interfaces that let those exploratory businesses selectively draw on the core's capabilities — all held together by ambidextrous leadership able to compartmentalize between the two. The term was first named by Robert Duncan (1976) and developed into a management framework by Michael Tushman and Charles O'Reilly.

Where it fits — and where to go deeper

In BRI Associates' methodology, organizational ambidexterity is the structural answer to RPP mismatch — the gap between the Resources, Processes, and Priorities a transformational innovation needs and those the core business has optimized for. BRI operationalizes the "formal interfaces" through Custom Governance and the Functional Interface (FIT) Team, which let an exploratory venture borrow core capabilities without being smothered by core-business priorities. For the full treatment of Company Fit and RPP, see the RPP pillar at /supporting/rpp. Related Terminology Index entries: RPP; Company Fit; Ambidextrous Leadership; Custom Governance; Functional Interface Team; Mezzanine.

Sources

  • Charles A. O'Reilly III & Michael L. Tushman, "The Ambidextrous Organization," Harvard Business Review (April 2004) — the ambidexterity management framework.
  • Michael L. Tushman & Charles A. O'Reilly III, "Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change," California Management Review (1996) — the foundational articulation.
  • BRI Associates, Strategy & Innovation Methodology — ambidexterity as the RPP-mismatch remedy, operationalized via Custom Governance and the Functional Interface (FIT) Team (/supporting/rpp).
← Back to Terminology Index

New Business Growth & Innovation are Hard.
We Can Help!

Connect with us today. We're happy to spend some time with you to understand your needs and explore how we can help.