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Exploration
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Market discipline
Enables organic emergence of innovation by harnessing creative tensions |
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Hierarchical discipline
Enables incremental innovation by harnessing adaptive tensions |
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Exploitation
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Resources |
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- Available to anyone with a worthy innovative idea and plan
- Just enough to reach an important milestone of success or failure
- Decisions made by a group of people—not by a single manager
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- Available through cascading allocation based on budgeting
- Budgeted amounts available throughout the budget cycle
- Decisions made through hierarchical committee structure
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| Relationships |
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- Self-organized teams of innovators
- Innovation enablers that help innovators progress
- Facilitated through networking and technology
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- Assigned and allocated through hierarchy
- Resides predominantly within organizational silos
- Requires permission to explore and develop new relationships
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| Rules |
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- Simple and transparent rules for qualifying and funding innovation
- Act quickly, very little bureaucracy, enablers can make decisions
- Freedom to explore semi-permeable boundaries
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- Most practices controlled through SOPs and committees
- Engineer incremental improvements on existing solutions
- Don’t stray from the core and obtain permission to explore
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| Roles |
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- Innovation enablers to identify and help promote innovation
- Doing innovation in your “spare time” based on your passion
- Leadership promotes tension and enables instability as a core value
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- Innovation is assigned primarily to R&D
- Doing innovation is not your role unless it is assigned to you
- Leadership limits tensions to maintain stability as a core value
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| Goals |
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- Get innovation into the organization’s DNA
- Experience exponential growth by delivering new customer value
- Constantly improve organizational efficiency
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- Predictable and steady growth, no surprises
- Increase efficiency by eliminating variation through incrementalism
- Maintain organizational processes and equilibrium
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