How HR Can Create Long-Term Value for an Ambidextrous Organization

In a previous article, I explored the polarity inherent in managing within an Ambidextrous Organization. But how can HR add long-term value in a world where complexity has become a societal reality and organizations must remain flexible and future-ready? The "Ambidextrous Organization" concept emerged as a response to this need, enabling companies to exploit existing processes while simultaneously exploring new opportunities. Based on my previous discussion of the benefits of this approach, I will now go into how HR can drive sustainable value creation in such organizations by adapting the selection process to address this evolving complexity.

HR's Role Amid Increasing Societal Complexity

HR is tasked with finding suitable candidates for current roles and identifying individuals with the potential to navigate future challenges. As complexity rises, employees must be able to provide stability and drive innovation within their roles. In this light, HR can add long-term value by aligning selection methodologies with the growing need for resilience and adaptability.

Real-World Examples: 3M and McKinsey

Organizations like 3M and McKinsey illustrate how ambidexterity in organizational strategy translates to talent management. At 3M, employees are encouraged to spend 15% of their work time on innovation projects, allowing them to explore new ideas while contributing to core business areas. This approach has created products like the Post-it and various medical advancements. By hiring adaptable and creative individuals, 3M’s HR team supports a culture where both exploration and exploitation can coexist, helping the organization remain resilient in a dynamic market.

Similarly, McKinsey focuses on identifying candidates who are technically skilled and capable of complex problem-solving. Instead of limiting their selection criteria to current competencies, McKinsey assesses candidates' strategic thinking abilities and potential to handle future complexity. This reflects Professor Jaques’ theory of work capability, where individuals are selected based on their capacity to manage increasingly complex roles. By seeking candidates with a future-oriented mindset, McKinsey’s HR ensures that their hires can contribute to stability and growth, which are vital in an ambidextrous setting.

Professor Elliot Jaques and the Critical Role of Potential

Elliot Jaques' work on work capability highlights the importance of selecting people based on their potential to take on increasingly complex roles. Instead of focusing solely on technical skills, HR must consider candidates' adaptive capacity, intrinsic motivation, and values, allowing them to contribute to exploitation and exploration within the organization.

Structural Adjustments in the Selection Methodology

To effectively support an ambidextrous organization, HR selection processes need to be refined in several ways:

1. Capability and Level Analysis: As Professor Jaques proposes, assessing capability early in the selection process helps gauge whether candidates are prepared for more complex responsibilities in the future.
2. Intrinsic Motivation and Values: By evaluating candidates' values, HR can better identify culturally fit and motivated individuals who can balance stability and innovation. Google, for example, utilizes behavioral interview techniques to identify candidates with a strong cultural fit and a high level of intrinsic motivation. They use open-ended questions to explore adaptability and problem-solving skills, such as, "Describe a time when you had to pivot from a set strategy to address an unexpected challenge." This approach allows Google to find individuals who are resilient, creative, and capable of contributing to core projects and experimental initiatives, aligning well with the principles of ambidexterity.
3. Future-Oriented Behavior and Leadership Potential: Selecting future-oriented behavior and leadership potential ensures that employees are ready for current roles and future changes and responsibilities.

From Selection to Long-Term Development

An ambidextrous organization also requires ongoing development. Beyond selection, HR must foster an environment where employees can grow and evolve their capabilities. Training, targeted feedback, and internal mobility are essential ways to reinforce and maximize the potential identified during the hiring process.

Key Takeaways

1. Balancing Stability and Innovation: Ambidextrous organizations must exploit existing processes while exploring new opportunities. HR is critical in selecting candidates who can contribute to stability and innovation.
2. Focus on Future Complexity: As illustrated by McKinsey, it is essential to look beyond current competencies and assess candidates' ability to handle future complexities, aligning with Jaques’ theories on work capability.
3. Cultural Fit and Intrinsic Motivation: Techniques such as Google’s behavioral interviews help HR identify candidates who are resilient, culturally aligned, and intrinsically motivated, enabling both exploitative and explorative work.
4. Commitment to Ongoing Development: Long-term value is built through continuous training, feedback, and career mobility, ensuring employees’ skills evolve with organizational needs.
5. Adaptation to Societal Complexity: By refining selection and development processes to meet societal complexities, HR can create a foundation for organizations to remain agile and future-ready.

By adjusting selection methodologies to meet increasing societal complexity, HR can create a foundation for lasting value. This approach enables organizations to remain adaptable and ready to meet current and future challenges.

Sources:

• McMorland, J., 2005. Are you big enough for your job? Is your job big enough for you? University of Auckland Business Review, 7(2), pp.74-83.
• O Reilly, C.A. and Tushman, M.L., 2004. The ambidextrous organization. Harvard Business Review, 82(4), pp.74-83.

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