A concept we need to incorporate into our lives: 'Ambidexterity'

Today, I would like to introduce you to the concept of "Ambidexterity." It generally signifies an individual's or an organization's capacity to sustain two different abilities simultaneously.

You may have heard expressions in our language like "having five talents in one's five fingers" or in the context of football, being able to use both the left and right foot. When we use the term "Ambidexterity" for an individual, it refers to the ability to use both the right and left hand (all existing skills). For an organization, it denotes the capability to effectively sustain current operations (today) while also exploring and realizing future opportunities (tomorrow).

In this blog post, we will focus on the definition of ambidexterity, real-life examples, and what companies need to do to achieve it.

Ambidexterity: Company Competencies

Ambidexterity

Ambidexterity, in its literal sense, means the ability to use the skills of both hands simultaneously. This term is particularly used in the business world to signify an organization's capability to effectively manage both current operations and assess future opportunities.

Etymology. The word "ambidextrous" is derived from the Latin roots ambi-, meaning "both", and dexter, meaning "right" or "favorable". Thus, ambidextrous is literally "both right" or "both favorable".

There are two main types: structural ambidexterity and strategic ambidexterity.

• Structural Ambidexterity: This type refers to the internal structure of the organization. The organization includes units dedicated to managing current operations while simultaneously engaging in innovative projects or new opportunities.

• Strategic Ambidexterity: This type signifies the organization's ability to optimize current operations and explore future opportunities. Strategic ambidexterity is a crucial factor for the long-term success of the organization.

The Emergence of Ambidexterity: The concept of ambidexterity has emerged, particularly with the rapidly changing conditions and increased competition in the business world. Adhering to a traditional structure may lead organizations to lose their sustainable competitive advantage. Therefore, organizations have recognized the need to both manage current operations and evaluate future opportunities.

Implementation of Ambidexterity: Ambidexterity requires organizations to transform both their internal structures and strategies. Without limiting the steps to the ones listed, the following actions can be taken:

• Understanding and improving current processes

• Conducting market research and making plans

• Developing and planning strategies

• Increasing interaction between different units and promoting knowledge-sharing

• Establishing units to invest in innovative projects.

• Providing employees with training and development opportunities to build flexible skills

• Balancing focus on both current operations and future opportunities in strategic planning

• Recognizing and developing talents.

• Monitoring corporate performance not only financially but also in customer relations, internal processes, and learning & development areas

• Focusing not only on the past but also on the future

Real-life examples:

• Apple: An example of both improving current products (iPhone, MacBook) and anticipating future technology trends to introduce new products (Apple Watch, AirPods). I believe there is no need to elaborate further on Apple.

• Toyota: An example of optimizing daily production activities while continually improving production processes and manufacturing innovative vehicles. Toyota, within its new roadmap, plans to introduce 10 new electric models by 2026 and aims to sell 1.5 million fully electric vehicles annually by 2026.

• Regarding Tüpraş's statement: "Our fuel oil conversion facility in the İzmit refinery will undergo periodic maintenance, which is technically required every 5 years, starting on March 1, with a planned shutdown of 92 days. While the reduction in production due to the shutdown is expected to be compensated with imports, no direct impact on the final sales volume is foreseen. However, a total EBITDA loss of $196 million is expected due to the decrease in production. On the other hand, Tüpraş announced that, within the scope of the Strategic Transformation Plan, it aims to invest approximately $5 billion by 2035 and a total of $10 billion by 2050."

• ...We can multiply these examples, but what matters here is understanding and shaping the expectations of tomorrow and the market while delivering good results today.

Companies that do not conduct market research, do not engage with consumers, do not listen to their employees, do not keep up with technology, and do not invest in the development of shareholders and decision-makers, no matter how much money they make, are destined to find their place on the dusty shelves of history.

Ambidexterity and Companies: How Do We Understand Them?

• Business Outcomes: Companies that embrace ambidexterity often achieve successful results in both short-term profitability and long-term growth.

• Innovation: If a company is active in developing new products and services, it can be an indicator of strategic ambidexterity.

• Employee Skills: Ambidexterity requires employees with flexible and versatile skills. Therefore, a company's importance on employee development and training can support this strategy.

• Strategy: They can play both in operational excellence and product/service leadership as well as differentiation.

Ambidexterity stands out as a strategic approach that provides a competitive advantage for organizations. Companies adopting this strategy can better adapt to changing global conditions and achieve sustainable success.

So, is your company "ambidextrous"?