Running versus Changing an organization

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Transcript

So how does this big picture translate into an organization where basically you have what academic called organizational ambidexterity. So it's a big challenge. It's a dilemma, because it's about doing the right things today, while changing so exploitation of our current capabilities, while we exploring new capabilities and new product. So that creates a lot of conflict. If you just do For example, exploitations that today today activities, the successful part that successful business, then you're very hardly going to change. A great example about this is Nokia.

Nokia was the number one mobile provider in the market. They had more than half of the market but they were complacent. They were just focusing on the day to day they forgot about new projects to create the future in Big successful companies are far with this problem. You don't need to forget that there's project. The challenge here is that the way you're organized to do the day to day activities is very hierarchical, is silo based. It's about departments.

It's about marketing cells productions operations. It's about how they were organizing 400 years ago. So that is a great model for efficiency, big volumes, low costs, to do projects, you need to do a different model. It's about networking. It's about working in very flat organization is about getting together from different very different angles, having people from marketing, legal HR, it technology working towards the project, and that creates a conflict. There's two big tensions between the resources, where do we place them?

Where do we do? What do we do? This solution what you see here, the best companies, they actually create two different entities. One is running the business. They do it very well as they've been done so far. And the other group is almost independent.

And they create projects. They create ideas, innovation, getting some of the resources from the day to day activities, and then they transfer them back there. Obviously, that's not easy, and also requires that the other side of the equation, the day to day organization has some changes too. And that's what we're going to see next how they all structure How can become more agile.

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