What is the organizational structure that allows for efficient management of different operations while encouraging innovation and adaptability?

The ambidextrous organization is designed specifically to balance the need for efficient management of established operations with the necessity for innovation and adaptability in response to change. This type of structure allows an organization to exploit its existing capabilities and resources effectively while simultaneously exploring new opportunities and innovations.

In practice, ambidextrous organizations typically split their operations into different units or teams, each focused on these distinct goals. One part of the organization may concentrate on optimizing current processes and products, while another segment operates more flexibly, experimenting with new ideas and approaches. This dual focus enables the organization to maintain operational efficiency while fostering a culture of innovation, which is crucial in dynamic and competitive markets.

Other organizational structures may emphasize either efficiency or innovation but not both to the same extent. For instance, a cohesive organization might prioritize teamwork and harmony at the expense of flexibility, while a hybrid organization could combine elements of different structures but may not fully achieve the same balance as an ambidextrous one. A functional organization typically organizes by departments, which can lead to silos and reduce the ability to innovate across divisions. Thus, the ambidextrous organization stands out as the structure that effectively meets these dual needs.