Stanford professor Charles A. O’Reilly III and Harvard professor Michael L. Tushman convincingly argue that the traditional or established “exploit” business model and a new “explore” business model require different kinds of management. Further, they teach, “ambidextrous leaders” should be able to support both facets of a company at the same time. They offer detailed practical examples from the corporate world, informative war stories from Amazon, IBM, and others to illustrate and underline their theoretical points. O’Reilly and Tushman provide a template for how to survive in a fast-changing business sector. They touch on companies like Blockbuster and Kodak, which are now synonymous with failure to react to disruptive change. If your company might be at risk of joining that list or wants to get out in front with exploratory innovation, getAbstract recommends taking the professors’ class.
In this summary, you will learn
- Why mature businesses often don’t adjust to new technologies and markets;
- What successful companies demonstrate about being the cause of disruptive change, not its victim; and
- Why companies need “ambidextrous leaders” who can manage both “exploiting” established businesses and “exploring” new ventures for the good of the overall firm.
About the Authors
Charles A. O’Reilly III is the Frank E. Buck Professor of Management at Stanford University’s Graduate School of Business. Michael L. Tushman is the Paul R. Lawrence MBA Class of 1942 Professor of Business Administration at Harvard Business School.