Ambidextrous Leadership: The Science and Art of Leading for Innovative and High-complexity Projects [1]
Anderson de Souza Sant'Anna
Professor at FGV-EAESP I Researcher at NEOP FGV-EAESP I AOM-MED Ambassador I Postdoctoral Fellow in the Psychiatry Graduate Program at USP
ABSTRACT
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In an era where innovation constantly redefines the boundaries of possibility, effective leadership in managing highly complex and innovative projects becomes paramount. This article explores the concept of ambidextrous leadership, which balances exploration and exploitation to achieve ambitious goals, such as the mission to send the first human to Mars by 2040. Through a detailed analysis of strategic methodologies and practical applications, the article emphasizes the importance of fostering a culture of flexibility, interdisciplinary collaboration, and proactive risk management. Key competencies and organizational support mechanisms necessary for effective mission execution are also examined. By integrating experiences from various sectors, the article provides a comprehensive framework for leaders to transform visionary projects into tangible realities, highlighting the essential role of adaptability, collaboration, and sustainable innovation.
Keywords: Ambidextrous Leadership, Innovation, Complex Projects, Strategic Management, Organizational Culture
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Introduction
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In a business context where the boundaries of innovation are continuously expanding, the ability to lead through uncertainty and complexity emerges as a crucial strategic differentiator (Uhl-Bien & Arena, 2020). In this scenario, let’s consider the challenge of leadership in the formulation and implementation of strategies to achieve, quite possibly, one of humanity’s most audacious goals: sending the first human to Mars and bringing them back to Earth safely by the year 2040. This challenge not only redefines the boundaries of what is possible but also demands a profound reassessment of current leadership and strategic management capabilities (Hannah, Uhl-Bien, Avolio, & Cavarretta, 2021).
Once this vision is outlined, a fundamental step consists of establishing a methodology that allows for the construction and operationalization of the strategic options to be set. To this end, a reinterpretation of Nonaka and Takeuchi’s (1997) four quadrants model for this mission includes the explication of tacit knowledge, confrontation with the unknown, creative combination, and the internalization of the knowledge generated, configuring a possible roadmap for the leader to establish the route for the strategic journey. This journey, which can be understood as an inverted “Y” chain, presents two guiding axes - exploitation and exploration - that converge towards a point of integration, constituted simultaneously by the spirals that gravitate around them, demanding ambidextrous leadership (O’Reilly & Tushman, 2021).
In the exploitation arm, the journey encompasses a reinterpretation of the installed organizational and professional competencies. The central idea is not just to integrate new technologies, processes, and people, but also to transform the mindset with which these devices are mobilized. The focus is not limited to innovation as novelty, including the identification and reinterpretation of organizational knowledge and history.
Simultaneously, in the exploration axis, leadership stimulates the team to extend its gaze beyond organizational boundaries - towards geopolitical, demographic, technological, economic, cultural, and behavioral changes - absorbing and establishing an organizational environment where the “strange” stimulates the identification, development, and attraction of new competencies and technologies not yet available. This process is strengthened by a shift in perspective on the “familiar”, driven by the first development spiral that integrates both axes of strategic gravitation.
Addressing this dual and convergent challenge, innovation is not limited to achieving historical milestones, such as the Mars mission, but in transforming how organizations mobilize human elements, resources, and management technologies to transcend present limits and shape the future (Brynjolfsson & Mitchell, 2021).
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Challenges, strategies, and the role of leadership
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Envisioning the challenge of placing the first human on Mars entails a feat that combines technological innovation, psychological resilience, advanced logistics, and intense intra- and inter-organizational collaboration, along with ethical considerations and exceptional strategic leadership. This project not only redefines the limits of what humanity can achieve (Zubrin, 2020), but also tests our capacity to overcome multidimensional barriers in an extremely inhospitable and unknown environment (Sanders & Halvorson, 2021).
The journey to Mars faces significant technological challenges, starting with the development of spacecraft capable of traversing the approximately 54.6 million kilometers that separate Earth from Mars (Kaku, 2020). The mission requires not only advanced propulsion systems but also the creation of life support environments that can sustain astronauts for months, protecting them against intense radiation and providing the necessary conditions for landing and taking off from the Martian surface (Petranek, 2022).
Concurrently, the challenges related to the health and psychology of astronauts are crucial, as muscle atrophy, bone mass loss, and the psychological impacts of prolonged isolation demand innovative solutions to ensure physical and mental well-being during the mission (Clearwater & Coss, 2021).
Beyond technical and human complexity, the logistics of the mission must be meticulously planned. From food production to waste management and the recycling of vital resources such as water and air, everything must be designed to ensure long-term sustainability millions of kilometers away from Earth (Clark & Newman, 2020). This aspect not only challenges logistical capabilities but also tests the ability to promote sustainable innovation in a highly diverse environment (Wells, 2021).
In this context, intra- and inter-organizational collaboration is crucial. The magnitude of the project requires an unprecedented partnership among various stakeholders, sharing the financial and technical burden and fostering a spirit of unity and cooperation for a common cause (Anderson & Johnson, 2020).
Besides collaboration, profound ethical issues arise, from the proper selection of astronauts to the implications of relationships among the involved professionals, demanding careful reflection on how to allocate the most suitable people in the right positions and situations at each phase of the mission (Ethics Board, 2022).
At the core of these aspects is leadership. Leading such a complex and multifaceted mission demands not only vision and determination (Brown & Trevi?o, 2021) but also an exceptional capacity to manage risks and uncertainties (Gleason & Marquardt, 2023).
The ability to balance innovation with safety, excitement with responsibility, and individual ambition with collective benefit is also essential. In a mission where ready-made formulas are nonexistent, leading means building and sustaining a living laboratory of testing and adjustments, challenging the limits of technology, management, psychology, and logistics, and providing a transitional space for unprecedented achievements (Tucker & Fernandez, 2021).
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Dealing with uncertainty
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In managing highly complex and innovative projects like this, the ability to lead strategically not only drives the realization of the mission but also determines its overall effectiveness. Leadership bears the crucial responsibility of sustaining the mission’s direction and purpose. Complex and innovative projects demand a clear vision, which must be effectively communicated at all levels of the organization and to the members of the relational ecosystem (Ancona & Bresman, 2020).
This shared vision serves not only as a reference point for aligning the mission’s activities but also to engage and inspire teams, encouraging collaboration and commitment to long-term goals. In the context of the mission to Mars, the objective transcends the technical, elevating the human spirit and catalyzing innovations in multiple areas (Kotter, 2022).
Besides establishing the vision, leadership is crucial in managing resources in highly complex environments. Innovative projects, such as space exploration, require significant investments in technology, research, and human development and support (Edmondson & Harvey, 2021). Strategic leadership involves critical decisions on how to allocate these resources efficiently, prioritizing investments that maximize returns in terms of knowledge, safety, and project performance.
Another fundamental aspect is the ability to navigate uncertainty. Projects that push the boundaries of the known often face unforeseen challenges. Strategic leaders must be capable of making decisions under conditions of uncertainty, adopting flexible and adaptive approaches. They need to be ready to adjust strategies, ensuring that the project can continue to advance even in the face of obstacles (Uhl-Bien & Arena, 2020).
Leadership also includes the ability to foster innovation within the team. This involves creating an environment that simultaneously encourages the effective mobilization of existing resources (exploitation) and continuous experimentation and learning (exploration). To achieve this, leaders must promote and sustain a culture where mistakes are viewed as learning opportunities and new ideas are valued and tested (Amabile & Khaire, 2021). This is particularly crucial in initiatives that require innovative solutions to previously unencountered problems.
Finally, leadership entails intercultural and negotiation skills, as projects of this nature often involve multiple stakeholders, each with their own interests and expectations. Effective leaders must, therefore, be able to articulate and harmonize divergent interests, negotiating solutions that mediate and anticipate conflicts, transforming destructive conflicts into creative ones, generating new ideas, actions, and results (Fisher & Shapiro, 2020).
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The knowledge spiral
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The four-quadrant model developed by Nonaka and Takeuchi (1997), also known as the knowledge spiral, is essential for understanding how organizations transform tacit knowledge into explicit knowledge, facilitating the efficient sharing and generation of new insights. This process is crucial for projects that push the boundaries of established knowledge (Nonaka & Kodama, 2021). The mission to Mars exemplifies the practical application of this model through the interactions among team members, including technicians, engineers, managers, and astronauts.
The initial transfer of tacit knowledge occurs through socialization, wherein experiences are shared in an informal environment. Joint simulations and team discussions allow valuable insights, often difficult to document, to flow freely among participants. This intuitive knowledge is fundamental for understanding the nuances of operating in unexplored environments like Mars (Von Krogh, 2020).
When this tacit knowledge is articulated, it enters the phase of externalization, where intuitions are transformed into explicit concepts such as guidelines and models. This process makes the knowledge accessible to all project members, facilitating the communication and assimilation of strategies (Nonaka & Takeuchi, 1997).
Following externalization, the project benefits from combination, where existing and emerging information is integrated to form a new body of knowledge. This phase involves comparing experimental results and existing processes to develop innovative solutions that can result in significant technical and operational advancements (Nonaka & Toyama, 2020).
Finally, internalization occurs when explicit knowledge is absorbed by individuals and disseminated throughout the organization. They apply this knowledge in daily tasks, transforming it back into tacit knowledge (Nonaka & Hirose, 2021).
This continuous cycle of learning and practical application is what truly prepares the team to operate efficiently under extreme conditions, adapting their actions based on both formalized knowledge and lived experiences (Figure 1).
Dual strategy and ambidextrous leadership
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Ambidextrous leadership emphasizes the ability of an organization or leader to efficiently manage two seemingly contradictory operational modes: exploration and exploitation. This balance is crucial for organizations that seek both innovation and operational efficiency, allowing them to adapt and thrive in rapidly changing environments (O’Reilly & Tushman, 2021).
Exploration involves activities aimed at innovation, discovery, and experimentation. This risk-oriented approach encourages creativity and accepts failure as part of the learning process, promoting organizational renewal and transformation. This enables organizations to anticipate disruptive changes and capitalize on them (Birkinshaw & Gupta, 2020).
On the other hand, exploitation focuses on reinterpreting and effectively appropriating existing processes, products, and services. It involves enhancement, efficiency, and the implementation of incremental improvements, as well as maximizing the profitability of already known and established resources. Exploitation activities are essential for stability and predictability, ensuring that the organization maintains a solid operational foundation while pursuing innovations.
Ambidextrous leadership, therefore, is the ability to balance these two modes. Ambidextrous leaders are those who can cultivate an environment where exploration and exploitation not only coexist but also complement each other. They create structures, processes, and an organizational culture that support both dynamics, allowing the organization to innovate while maintaining the efficiency of existing operations (Simsek, Heavey, & Veiga, 2021).
Implementing ambidextrous leadership can be challenging, as it requires flexibility, tolerance for ambiguity, and conflict management skills. Leaders need to be able to encourage the team to explore new ideas without compromising the quality and efficiency of current processes. They must also know when and how to allocate resources between exploration and exploitation activities, often involving difficult decisions about competing priorities.
However, ambidextrous leadership has proven particularly relevant in sectors facing rapid technological and competitive transformation. In projects like the Mars mission, ambidextrous leadership is essential. The need to innovate in space technology while maintaining strict safety and efficiency standards exemplifies the practical application of this concept.
The ability to innovate with existing materials in the unknown Martian environment and manage the resources brought from Earth is crucial for the astronauts’ survival and achievement. Therefore, leaders must manage the tension between developing new technologies and systems (exploration) and ensuring that existing technologies are absolutely reliable and efficient (exploitation).
In this context, neither accommodating existing organizational and personal competencies nor fleeing to the imaginative realm of future-assuring innovation presents a solution. The reality of the Martian conditions demands the synergy of these two knowledge axes; the construction and maintenance of organizational ambiences that allow the synergy between emerging competencies (exploration) and current ones (exploitation).
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Bridging exploration and exploitation
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Using the metaphor of an inverted “Y” chain, it is possible to visualize the need to balance these two essential and complementary organizational axes - exploration and exploitation. This representation illustrates how organizations can simultaneously innovate and reinterpret their existing organizational and professional competencies to achieve their missions sustainably. As the spirals around the two arms of the inverted “Y” advance (Quadrants 1 and 2 of the knowledge spiral model), they begin to converge at the central axis (Quadrant 3), creating space for the integration of emerging innovations with existing processes (Quadrant 4).
This convergence is critical because the innovations generated by exploration must eventually be absorbed and optimized by the organization’s exploitation arm, transforming innovation into performance and results (Smith & Tushman, 2020).
Leading this dynamic requires ambidextrous leadership skills, where the leader not only encourages innovation and creativity but also ensures the construction of an organizational environment that integrates short-term and long-term goals, profit and sustainability, exploration and exploitation.
This requires a deep understanding of how to balance the drive for innovation with the need for efficiency, creating a continuous cycle of renewal and results that supports both the growth and stability of the organization (O’Reilly & Tushman, 2021).
In the context of the manned mission to Mars, the interaction and convergence of the two axes of the inverted “Y” chain (Quadrants 1 and 2) are fundamental. This dynamic between innovating and reinterpreting the existing not only propels the mission but also ensures that innovations are applicable and sustainable over time.
In the spirals associated with the exploration axis, the challenge lies in generating new ideas, technologies, and processes that can realize the vision, including the development of advanced propulsion systems, habitats capable of supporting human life in extreme environments, and self-sustaining life support systems. This dynamic is characterized by a high degree of uncertainty and risk, requiring an environment that promotes experimentation and tolerance for error (Edmondson, 2021).
Simultaneously, continuous dialogue with the exploitation axis allows for the identification of gaps in achieving the vision and the need for disruptive and/or incremental changes. Once innovative technologies are developed to overcome the hiatus related to the vision, they need to be refined, tested, and integrated into broader systems that already have established operations and performance gaps (Figure 2).
In the Mars mission, the technology developed to purify water in Martian conditions, for example, must be compatible with other life support systems of the spacecraft, ensuring that all components work together efficiently. This exploitation phase is crucial to ensure that innovations are not only creative but also operationally viable and reliable.
Such convergence of the axes occurs when the results of exploration are systematically incorporated into exploitation processes. This is the critical point where innovation is transformed into a practical and sustainable application. Leading this interaction and convergence, once again, requires a leadership mindset capable of understanding and manipulating the pace and intensity of each of these processes. Leaders must know when to encourage the team to explore new ideas and when to focus on executing and optimizing innovations.
Moreover, it is essential to maintain a culture that values both creativity and discipline, allowing the team to smoothly transition between exploring new concepts and exploiting effective solutions. The mission demands a rare and rigorously developed combination of technical, professional, and organizational competencies. Analyzing and developing these competencies are vital for the effective preparation and execution of the mission, reflecting the level of complexity and innovation that the project requires.
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Competencies and organizational support
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In the context of the mission to send the first human to Mars, the required competencies encompass a diverse range that includes specific operational knowledge, management competencies, as well as psychological and emotional skills, all fundamental to the mission’s achievement. Operational skills, such as piloting spacecraft and operating equipment in low-gravity environments, are crucial and typically require intensive training, often in simulators that recreate Martian conditions. These technical skills are indispensable as they enable astronauts to conduct scientific experiments under adverse conditions and handle the mission’s technical complexity (Wickman, 2021).
In parallel, management competencies are equally critical. Managers involved in the mission need to integrate knowledge from various disciplines and apply it in an extremely challenging context. This requires robust interdisciplinary understanding and the ability to work effectively in multidisciplinary teams, essential aspects for coordinating and executing large-scale and complex projects (Hernandez, Eberly, Avolio, & Johnson, 2020).
Beyond technical and operational skills, psychological and emotional competencies play a crucial role. The mission demands that those involved demonstrate resilience, the ability to handle extreme stress, and interpersonal skills to manage conflicts and work cooperatively. These competencies are vital to ensure the mental health and cohesion of the team during the long mission duration (Thompson & Goldin, 2020).
At the organizational level, the competency to manage large-scale, complex, and long-duration projects is indispensable. The organization must be capable of planning and executing multiple phases of the project, managing an extensive budget, and coordinating geographically distributed teams. This requires advanced leadership skills, strategic planning, and risk management, as well as the ability to make critical decisions under pressure (Brooks & Wright, 2021).
The processes involved in the mission are equally complex and need to be rigorously planned and validated. This includes detailed simulations and intensive training for the professionals involved, who must be prepared to face all kinds of contingencies. The launch and reentry processes are particularly critical and require clear and reliable procedures to ensure the crew’s safety.
The preparation and execution of experiments on Mars also demand well-defined processes, which must consider not only data collection but also the safe analysis and storage of the obtained information, taking into account all alerts, issues, and data associated with the Martian environment’s critical conditions.
From a managerial perspective, project management tools and methodologies are fundamental. Tools such as risk management, quality management, and failure analysis help identify potential problems before they occur and ensure that all parts of the project are aligned and functioning as planned. Artificial intelligence tools can contribute to monitoring and controlling all phases of the mission, and communication between teams, facilitated by online collaboration tools, is another crucial element to keep everyone informed and engaged.
These components, from cutting-edge technologies to processes and management approaches, are all critical for the mission’s realization. Each element must be meticulously designed, tested, and implemented, ensuring that even in the face of the most unpredictable challenges, the mission can advance safely and effectively.
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Ressignifing organizational mindset
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The transformation of mindset, or the renewal of organizational mentality, is equally crucial for the effective mobilization of resources and competencies involved in complex and innovative projects, such as the mission to send the first human to Mars. This process goes beyond the adoption of new practices or technologies; it requires a fundamental change in how members of the organization think, act, and interact. Integrating innovations, overcoming unexpected challenges, and achieving ambitious goals depend crucially on this new mindset (Schein & Schein, 2020).
Firstly, redefinition involves cultivating a culture of learning and openness to new ideas. In projects that push the boundaries of human knowledge and capability, such as space exploration, it is vital that everyone involved is willing to question existing assumptions and explore possibilities that initially may seem improbable. This aspect is crucial for fostering continuous innovation, allowing the organization to discover and implement solutions that transform seemingly insurmountable challenges into tangible opportunities (Edmondson, 2020).
Additionally, it encompasses the acceptance and effective management of risk. In a highly uncertain and risky environment like the Mars mission, it is necessary for the team to not only recognize and minimize risks but also accept them as an integral part of the innovation process. This implies developing an organizational tolerance for failure, understanding it as a necessary step on the path to realization. Learning from mistakes and adapting quickly is more effective in a culture where risk is seen as an essential component of experimentation and growth (McGrath, 2021).
Redefining the mindset also means reinforcing interdisciplinary collaboration. Projects like sending humans to Mars require the integration of knowledge from various disciplines - from aerospace engineering to biology and psychology. A mindset that values and promotes collaboration among different specialists can accelerate the development of holistic and innovative solutions, significantly increasing the project’s chances of realization (Ancona, 2021).
Another important aspect is the sustainability of resources. Redefining the mindset to focus not only on immediate accomplishment but also on long-term sustainability is imperative. This involves careful planning of resource use, maximizing efficiency, and minimizing waste, ensuring that future generations can continue to explore and benefit from current initiatives (Klein, 2020).
Finally, the effective mobilization of resources through mindset redefinition requires leadership that inspires and motivates. Leaders capable of encouraging their team to adopt new perspectives and work collectively towards a common goal can make the difference between the realization and failure of a large-scale, high-risk project. Effective leadership communicates the project’s vision, aligns expectations, and keeps the team engaged and focused, even in the face of adversity (Hickman, 2021).
In summary, leadership and strategic management for the Mars mission involve a complex combination of technical, managerial, and human competencies. Leaders must be ambidextrous, capable of innovating while maximizing efficiency, transforming mindsets, and ensuring operational sustainability, all while engage their teams to achieve one of humanity’s greatest exploration feats.
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Ambidexterity in practice
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Reflecting on the complex and innovative challenge of sending the first human to Mars, several valuable insights can be gleaned, offering crucial understandings for initiatives that involve organizational shifts. First, one learns that flexibility and adaptability are essential elements. The dynamics of such a complex mission require constant adjustments to plans and strategies in response to discoveries and emerging challenges. The ability to modify technologies, adapt to new information, and revise timelines swiftly and efficiently has proven key for the project’s continuous progress (Edmondson, 2020).
Moreover, the importance of intra and interorganizational collaboration is highlighted. The multifaceted challenges of a mission to Mars require deep integration of knowledge that spans various disciplines and cultures. Intra and interorganizational collaboration not only divides the enormous associated costs but also enriches the project with a variety of perspectives and experiences, substantially increasing the chances of accomplishment. This union of efforts demonstrates the power of cooperation in achieving goals that no participant could reach alone (Ancona & Bresman, 2020).
Risk management also assumes a prominent role, with the development of sophisticated strategies to identify, assess, and mitigate potential dangers. Implementing redundancies, conducting detailed simulations, and preparing for diverse contingencies are practices that ensure the crew’s safety and the project’s integrity. These measures underline the need for careful planning and meticulous consideration of possible adverse scenarios, preparing the mission to face and overcome unexpected obstacles (Taleb, 2020).
Resource sustainability is another fundamental component, especially given the isolated nature and limited resources of a space mission. Sustainable practices, such as efficient recycling of water and air and local food production, are pivotal not only for survival on Mars but also as valuable models for promoting sustainable development on Earth. This approach reinforces the importance of maximizing resource efficiency and minimizing environmental impact (Hawken, 2021).
Additionally, extensive preparation highlights the importance of human resilience. Rigorous training help prepare the team for the physical and emotional challenges of the mission, reinforcing the need to maintain mental health and group cohesion in situations of great stress. This preparation is a reminder of the complexity of space missions, which require more than just technical skills; they demand considerable emotional and psychological fortitude (Kahneman, 2021).
Ultimately, the effectiveness of communication within the mission team, between the team and ground control, and with the public and stakeholders is indispensable. Keeping everyone informed, engaged, and in tune with the project’s developments is vital for maintaining continuous support and efficiently resolving problems as they arise (Grant, 2021).
These aspects emerge as significant not only for the achievement of space missions but also offer valuable guidance for leadership, management, and execution of projects in various fields, especially those involving high technology and innovation.
Chart 1 allows for a visualization of critical components emerging from these insights, with each element being interdependent and vital for the realization of each stage of this complex and ambitious journey.
Through Chart 1, it is possible to identify various instruments that, although already available to organizations, require reinterpretation to create new value propositions. These adjustments are fundamental to enhancing leadership effectiveness in challenging environments.
Furthermore, these resources, when adequately realigned, can serve as valuable tools for leaders who aspire not only to achieve immediate goals but also to sustain processes of innovation and continuous growth within their organizations. This strategic adaptation enables leadership to transform challenges into opportunities, strengthening organizational resilience and fostering a culture of sustainable innovation.
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Fostering a culture of sustainable innovation
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The interaction between leadership strategies and organizational culture is another crucial factor for the operational effectiveness and innovation capacity of an organization (García-Morales, Matías-Reche, & Hurtado-Torres, 2021). Leadership styles, particularly those involving ambidextrous leadership, significantly impact culture management, especially as they directly influence how values, norms, and behaviors are perceived and internalized within the organizational ecosystem (Smith & Lewis, 2022).
When leaders adopt an ambidextrous approach, they essentially balance the capacities of exploration and exploitation (O’Reilly & Tushman, 2020). This approach aims to generate an organizational culture that values both innovation and efficiency, but the effective implementation of these strategies requires a culture that is open to change and ambiguity (Raisch, Birkinshaw, Probst, & Tushman, 2021). Thus, while the culture must emphasize openness, continuous learning, and tolerance for error, it must also sustain precision, efficiency, and stability (Andriopoulos & Lewis, 2021).
This requires well-defined processes, clear performance standards, and a strong orientation toward results that add value to both internal and external customers (Jansen et al., 2021). Leaders must work to integrate these qualities through competency development, performance management, recognition of the human needs of team members, their career life cycle position, and acknowledgment of efforts that optimize and review existing operations (Birkinshaw & Gibson, 2021).
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However, implementing these strategies often encounters obstacles. Deeply entrenched organizational cultures that resist change can hinder the introduction of innovative practices and even the reinterpretation of existing ones (Carmeli & Halevi, 2021). In environments where errors are unacceptable, fear of failure can inhibit the experimentation and exploration necessary for innovation (Nemanich & Vera, 2021). Additionally, in cultures that value hierarchy and control, decentralizing decisions can be challenging (Zacher, Robinson, & Rosing, 2021).
To overcome these challenges, it is essential for leaders to be aware of the existing culture and actively work to align expectations and behaviors with emerging strategies (Gibson & Birkinshaw, 2021). This may involve developing a more flexible and adaptive mindset, as well as making adjustments to reward and recognition systems to support both innovation and operational efficiency (Jansen & Van den Bosch, 2021).
Thus, while strategies shape organizational culture, the culture itself can, in turn, facilitate or hinder the implementation of strategies (Schneider, Ehrhart, & Macey, 2021). The key to overcoming this dilemma lies in leaders’ ability to navigate this complex dynamic, adjusting their approaches as necessary to cultivate an environment that not only accepts but also embraces both change and stability (He & Wong, 2021).
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Challenges and learnings
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It is evident, therefore, that ambidextrous leadership does not develop without a large number of other challenges. One of the main issues lies in managing resource conflicts, where the investment needed for innovation can collide with the demands of daily operations, which are often safer and more predictable in terms of return on investment. This internal struggle for resources can result in daily operations stifling innovative initiatives due to their immediate demand and guaranteed returns (O’Reilly & Tushman, 2021).
Moreover, ambidextrous leadership requires a tolerance for risk that many corporate cultures may not support. While exploration involves accepting risks and errors as part of the innovation process, exploitation activities focus on efficiency and predictable results. Harmonizing these two approaches can be a significant cultural challenge, especially in organizations that have a high aversion to risk (Raisch & Birkinshaw, 2020).
The need to maintain a strategic balance between innovation and operational efficiency also requires a clear vision and well-articulated strategic communication. Without this, teams can feel disoriented, leading to fragmented efforts and initiatives that may be neither innovative nor efficient (Edmondson & Harvey, 2021).
The effectiveness of ambidextrous leadership, therefore, heavily depends on leaders’ ability to inspire, engage, and simultaneously manage the dynamics of exploration and exploitation. This places significant pressure on leaders, who must possess or develop a wide range of competencies (Smith & Tushman, 2020).
Furthermore, implementing an ambidextrous leadership model can be complex and may require significant changes in organizational structure and business processes, which can face resistance from those who prefer the status quo (Birkinshaw & Gibson, 2021).
Maintaining a balance between exploration and exploitation can also be challenging in the long term, especially under stakeholder pressure to deliver short-term results. If exploration is not clearly negotiated, it can be constantly sacrificed in favor of immediate operational outcomes (Leonard & Swap, 2020).
This can lead to a culture where new ideas are silenced or not fully explored. Attempting to operate ambidextrously without adequate resources or structures can overload teams and existing infrastructure, leading to burnout and a decline in work quality on both fronts (Higgins & McAllaster, 2021).
Thus, if exploration and exploitation initiatives are not well integrated, it can result in duplication of efforts, inefficiencies, and a failure to capitalize on the synergies between innovation and existing operations. Hence, the importance of factors such as effective strategic communication and the development of an organizational ambience that values both innovation and operational efficiency.
Additionally, it is crucial to implement systems that monitor the balance between exploitation and exploration, adjusting strategies as necessary to ensure that both aspects and associated competencies contribute to achieving the mission (Kaplan & Norton, 2021).
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Conclusion
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When considering insights gained from complex and innovative missions, it becomes evident how such experiences can not only drive future journeys but also provide valuable guidance for managing strategically challenging projects (Garcia-Morales, Matías-Reche & Hurtado-Torres, 2021). Practical cases in various sectors reveal that effective leadership and management strategies are fundamental to transforming ambitious visions into tangible realities (Gibson & Birkinshaw, 2021).
In the health sector, the response to the Covid-19 pandemic presented unprecedented challenges for healthcare systems worldwide, requiring ambidextrous leadership to balance the emergency response to the crisis with the maintenance of regular healthcare services (Haleem, Javaid & Vaishya, 2020).
The effectiveness of vaccination initiatives, such as the implementation of drive-thru systems in various countries, highlights the need for leadership that can explore new ways of delivering services while maintaining operational efficiency (Williams & Cooper, 2021).
The use of technology for contact tracing and the rapid adaptation of laboratories to develop tests and vaccines are other examples of exploration, while the reorganization of hospitals to treat Covid-19 patients reflects efficient exploitation (Budd et al., 2020).
In the entertainment industry, the shift to digital consumption and the rise of streaming platforms have revolutionized the sector, requiring leadership that can integrate technological innovation with traditional content production (Doyle, 2021).
Netflix is a notable example of ambidextrous leadership, innovating by shifting from a DVD rental model to a streaming service and, more recently, starting to produce its own original content (Kr?mer & Kalka, 2021). This exploration strategy helped Netflix become a market leader while the company continues to improve its streaming platform and recommendation algorithm to increase efficiency and user satisfaction (Wayne, 2021).
In the financial sector, digitalization and the emergence of fintechs that challenge traditional banking models require leadership that balances innovation and operational efficiency (Gomber, Koch, & Siering, 2021).
Nubank, a Brazilian fintech, exemplifies this leadership by introducing innovative and accessible banking services through a digital platform while ensuring secure and efficient operations such as transaction processing and customer service (Frost, 2020). Nubank’s ability to quickly attract a large customer base while maintaining low default rates demonstrates an effective balance between innovation and operational efficiency (Szmigiera, 2021).
In the retail sector, the rise of e-commerce has drastically changed how consumers shop, requiring retailers to adapt their strategies to compete both online and in physical stores (Hagberg, Sundstrom & Egels-Zanden, 2020). Amazon exemplifies ambidextrous leadership through constant innovation in its business model and supply chain (Hübner, Kuhn & Wollenburg, 2021). The development of technologies like Amazon Go, cashier-less stores, demonstrates a commitment to innovation, while continuous improvement of logistics and customer service operations ensures fast and efficient deliveries (Anders, 2021).
Returning to our mission to Mars, SpaceX illustrates visionary and innovative leadership in the aerospace industry. The introduction of reusable materials, a high tolerance for risk, and a culture that celebrates both achievements and failures highlight the importance of leadership that can engage and innovate (Vance, 2021). The experience of SpaceX serves as a reference of how innovative vision and effective management can reduce costs and revolutionize sectors (Jones, 2020).
In sum, these examples demonstrate how, regardless of the sector or the scope of the challenge, effective leadership and management strategies are crucial for transforming ambitious visions into tangible realities. Leaders who learn from these experiences can apply these insights to overcome challenges in their own innovative projects, reinforcing the importance of adaptability, collaboration, risk management, sustainability, resilience, and effective communication, thus integrating the science and the art of business administration (Smith, Lewis & Tushman, 2021).
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[1] Professor at FGV-EAESP. Researcher at NEOP FGV-EAESP. MED-AoM Ambassador. Postdoctoral Researcher in Psychoanalytic Theory. Doctor in Business Administration and Doctor in Architecture and Urbanism. https://pesquisa-eaesp.fgv.br/professor/anderson-de-souza-santanna.
This paper was developed within the framework of the Leadership Observatory NEOP FGV-EAESP. This research is supported by the S?o Paulo Research Foundation (FAPESP).
Sant'Anna, A. S. (2024). Ambidextrous Leadership: The Science and Art of Leading for Innovative and High-complexity Projects. Manuscript Discussion Series, 2(9):1-18. NEOP FGV-EAESP. (Work in progress).
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6 个月Anderson de Souza Sant'Anna Very Informative. Thank you for sharing.