Session 4 - Exploration and Exploitation

Question 1

Define

Incremental innovations

Answer 1

Small improvements in their existing products and operations that let them operate more efficiently and deliver even greater value to costumers.

Question 2

Define

Architectural innovations

Answer 2

It’s when companies apply technological or process advances to fundamentally change some component or element of their business.

Question 3

Define

Discontinuous innovations

Answer 3

Radical advances like digital photography that profoundly alter the basis for competition in an industry, often rendering old products or ways of working obsolete.

Question 4

How do companies tend to structure their breakthrough projects?

Answer 4

• Functional designs: Completely integrated into the regular organizational and management structure.
• Cross-functional teams: Groups operating within the established organization but outside the existing management hierarchy.
• Unsupported teams: Independent units set up outside the established organization and management hierarchy.
• Ambidextrous organizations: Structurally independent units, each having its own processes, structures, and cultures but integrated into the existing senior management hierarchy.

Question 5

Define

Functional designs

Answer 5

Integrate project teams into the regular organizational and management structure.

Question 6

Define

Cross-functional teams

Answer 6

Groups operating within the established organization but outside the existing management hierarchy.

Question 7

Define

Unsupported teams

Answer 7

Independent units set up outside the established organization and management hierarchy.

Question 8

Define

Ambidextrous organizations

Answer 8

Structurally independent units, each having its own processes, structures, and cultures but integrated into the existing senior management hierarchy.

Question 9

What are the two types of ambidexterity?

Answer 9

Structural and Contextual.

Question 10

Define

Structural Ambidexterity

Answer 10

Creating separate organizational structures for different types of activities, such as core business units focusing on existing markets, and R&D and business development focusing on new opportunities.

Question 11

Define

Organizational Ambidexterity

Answer 11

The ability of an organization to balance alignment with existing markets and products with the need to adapt to emerging trends and opportunities.

Question 12

Why is Structural Separation Necessary?

Answer 12

Because the activities related to existing products and emerging opportunities are so different that they cannot effectively coexist.

Question 13

What is the Downside of Structural Ambidexterity?

Answer 13

Separation can lead to isolation, making it difficult for R&D and business development groups to get their ideas accepted by core business units.

Question 14

What are some variants of Structural Ambidexterity?

Answer 14

• Pulling individuals out of their current roles to work in dedicated cross-functional teams temporarily.
• Creating small business-development teams attached to existing business units.

Question 15

Define

Contextual Ambidexterity

Answer 15

Allowing individual employees to decide how to balance alignment-oriented and adaptation-oriented activities in the context of their day-to-day work.
It’s the collective orientation of the employees toward the simultaneous pursuit of alignment and adaptability.

Question 16

How does Contextual Ambidexterity differ from Structural Ambidexterity?

Answer 16

Contextual Ambidexterity is more flexible and relies on individual judgment, whereas Structural Ambidexterity is more top-down and relies on pre-defined organizational structures.

Question 17

What companies successfully use both Structural and Contextual Ambidexterity?

Answer 17

Hewlett-Packard, 3M, and Intel are examples of companies that use both approaches to balance the needs for alignment and adaptability.

Question 18

How do employees function in Contextually Ambidextrous Units?

Answer 18

They have the flexibility to use their judgment to divide their time between alignment-oriented and adaptation-oriented activities.

Question 19

What are the four ambidextrous behaviours in individuals?

Answer 19

• They take the initiative and are alert to opportunities beyond the confines of their own jobs.
• They are cooperative and seek out opportunities to combine their efforts with others.
• They are brokers, always looking to build internal linkages.
• They are multitaskers who are comfortable wearing more than one hat.

Question 20

How is ambidexterity achieved?

In both Structural and Contextual Ambidexterities.

Answer 20

Structural: Alignment-focused and adaptability focused activities are done in separate units or teams.
Contextual: Individual employees divide their time between alignment-focused and adapt-ability-focused activities.

Question 21

Where are decisions made about the split between alignment and adaptability?

In both Structural and Contextual Ambidexterities.

Answer 21

Structural: At the top of the organization
Contextual: Ont he front line - by salespeople, plan supervisors, office workers

Question 22

What is the role of top management?

In both Structural and Contextual Ambidexterities.

Answer 22

Structural: To define the structure, to make trade-offs between alignment and adaptability.
Contextual: To develop the organizational context in which individuals act.

Question 23

What are the skills of the employees?

In both Structural and Contextual Ambidexterities.

Answer 23

Structural: More specialists
Contextual: More generalists

Question 24

What is context and how can managers shape it?

Answer 24

Context is the often invisible set of stimuli and pressures that motivate people to act in a certain way. Managers shape organizational context through the systems, incentives and controls they put in place, and through the actions they take on a day-to-day basis.

Question 25

What sets of attributes interact to define an organization’s context?

Answer 25

• Stretch
• Discipline
• Support
• Trust

Question 26

How do stretch, disciplline, support and trust combine to create the organizations context?

Answer 26

They combine to create two dimensions: performance management and social support.

Performance Management:
- Combination of stretch and discipline.
- It’s concerned with stimulating people to deliver high-quality results and making them accountable for their actions.

Social Support:
- Combination of suport and trust.
- It’s concerned with providing people with the security and latitude they need to perform.

Performance management and social support are equally important and mutually reinforcing.

Question 27

What makes an organization context a high-performance one?

Answer 27

The strong presence of performance management and social support.

Question 28

From the quiz

In “The Ambidextrous Organization” (O’Reilly and Tushman, 2004), the cases of USA Today and Ciba Vision were presented. How were both companies successfully ambidextrous?

Answer 28

The executive team was able to understand different kinds of business.: True
External consultants were hired to implement the changes.: False
A clear vision was communicated to the companies’ employees.: True
Executive members resisting the changes were laid off.: True

Question 29

From the quiz

In “Building Ambidexterity into an Organization” (Birkinshaw and Gibson, 2004), four types of ambidextrous behavior in individuals are discussed. Please, indicate True/False if the following types of behavior are metioned/not mentioned.

Answer 29

Spontaneously seeking out cooperation with others. : True
Disregarding instructions from superiors.: False
Being comfortable with having a dual role inside the company.: True
Taking initiatives beyond the job’s confine [i.e., boundaries].: True