Explain why firms that achieve both adaptability and alignment are considered ambidextrous organizations.

Question

What will be an ideal response?

Answer 1

The concept of ambidexterity incorporates two contradictory challenges faced by managers today. First, managers must explore new opportunities and adjust to volatile markets in order to avoid complacency. They must ensure that they maintain adaptability and remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions. Such competencies are especially challenging when change is rapid and unpredictable. Second, managers must also effectively exploit the value of their existing assets and competencies. They need to have alignment, which is a clear sense of how value is being created in the short term and how activities are integrated and properly coordinated. Firms that achieve both adaptability and alignment are considered ambidextrous organizations. That is, they are aligned and efficient in how they manage business today but flexible enough to changes in the environment so that they will prosper tomorrow. Handling such opposing demands is difficult because there will always be some degree of conflict. Firms often suffer when they place too strong a priority on either adaptability or alignment. If it places too much focus on adaptability, the firm will suffer low profitability in the short term. If managers direct their efforts primarily at alignment, they will likely miss out on promising business opportunities.