Good Morning, Noble Managers! It’s Wednesday, April 30.
Topic: Innovation Management | Ambidextrous Organizations | Structural Design
For: B2B and B2C Managers.
Subject: Innovation → Practical Application
Concept: Creating separated innovation units with senior-level integration
Application: Using the ambidextrous model to structure innovation efforts for success
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TL;DR:
Why so many innovation efforts die quietly
How to spot the warning signs—A 3-minute Innovation Scorecard
How to structure your project for success—A tactical playbook
Introduction
Innovation drives growth, but too often, it dies a quiet death.
Picture this: You’ve been given the green light for a new product, sub-brand, or process change.
Leadership says, “Go for it.” You start building, full of energy. Then things slow down.
The budget gets redirected. The team is swamped with core work. Colleagues resist: “That’s not how we do things.”
No one blocks you outright, but the project stalls. And soon… it fades away.
According to Harvard Business School professor Clayton Christensen, 95% of product innovations fail (HYPE Innovation).
Most don’t fail because of bad ideas—they fail because organizations are built to optimize the present, not explore the future.
“Most companies are built to optimize what exists—not to explore what could be.”
The good news?
Ambidextrous organizations—those that balance exploitation and exploration—succeed in breakthrough innovation 90% of the time, compared to just 25% for other approaches.
Today, we’ll show you how to apply this model with a playbook, a 3-minute scorecard, and real-world lessons.
Let’s make your next idea a reality!
At HP’s Greeley Hard Copy division, a team built five portable scanner prototypes over five years.
Each showed promise—niche buyers were willing to pay $1,000—but none launched.
Why?
The core business (flatbeds) controlled resources, KPIs were tied to flatbed performance, and leadership didn’t protect the project.
The ideas died of neglect, not failure.
Here are the traps that killed HP’s innovation—and the warning signs to watch for:
Trap 1: Over-Integrating into the Core Business.
What It Looks Like: “Just use the existing team and report through the usual channels.”
Why It Fails: The core business’s focus on efficiency (e.g., hitting quarterly targets) kills the experimentation needed for innovation.
Trap 2: Isolating the Innovation Team.
What It Looks Like: “Put the team in a corner and let them figure it out.”
Why It Fails: Without access to the core business’s resources (talent, funding, expertise), the innovation team struggles to scale.
Trap 3: Consensus-Driven Delays.
What It Looks Like: “We need everyone to agree before moving forward.”
Why It Fails: Innovation needs speed, not universal comfort. Consensus-driven processes prioritize harmony over progress.
Watch for These Warning Signs:
Your project reports to someone tied to the core product.
Budget comes from leftovers.
No executive sponsor with real power.
Endless “alignment” meetings or “do more research” requests.
How to Get it Right: A Real-World Example
HP turned it around with the Portable Capture and Communicate (PCC) Unit—a semi-independent team with its own budget, KPIs, and space, but connected to senior leadership.
General Manager Phil Faraci protected the team, breaking ties and ensuring resources, and shielding the team from core business demands.
PCC fostered a “fast-paced, break-the-rules” culture that attracted top talent eager to experiment.
The result? They launched the Zorro scanner in record time, moving up the release by a year—without losing a single engineer.
This ambidextrous approach worked for others too. USA Today unified print and online teams under a “network strategy,” while Ciba Vision launched breakthrough products with a “Healthy Eyes for Life” vision.
Tactical Tool: Innovation Alignment Scorecard
Assess your project’s health with this 3-minute scorecard. Answer these yes/no questions:
Does your project have a dedicated budget?
Is there a senior sponsor who clears roadblocks?
Does the team have at least one dedicated member?
Are KPIs tied to learning, not just revenue?
Can decisions be made without full consensus?
Is the team separate from the core business?
Are team members incentivized to support the innovation?
Do you have a clear timeline with milestones?
Is failure treated as a learning opportunity?
Do you have access to necessary resources (e.g., marketing)?
Risk Levels:
Risk Level | Score | Action |
|---|---|---|
Green | 8-10 | Proceed with confidence |
Yellow | 5-7 | Address gaps in 2 weeks |
Red | 0-4 | Pause and restructure |
—> Access our interactive tool to asses whether your innovation project is structurally set up for success. Link here: Innovation Alignment Scorecard
—> Download 10 recommendations to help you structure your innovation projects for success.
The Ambidextrous Playbook: 6 Steps
Here’s how to innovate without losing your core:
Step 1: Separate the Team—But Stay Connected at the Top
Create an independent unit with its own processes, but ensure it reports to a senior executive who oversees the core business.
Step 2: Define a Clear, Shared Vision
Tie the innovation to the company’s long-term goals (e.g., “Expanding our legacy into new markets”). Communicate it relentlessly.
Step 3: Align Incentives Across Units
Tie rewards to company-wide performance. Recognize collaboration, like USA Today’s “Friends of the Network” program.
Step 4: Normalize Experimentation
Make failure safe. Use tight loops: Try → Measure → Adjust → Share. Praise learning, not just success.
Step 5: Appoint a Leader Who Manages Both Worlds
Choose a leader respected by both teams to manage trade-offs and make quick decisions.
Step 6: Move Faster Than Expected
Set aggressive timelines and secure upfront funding. Test small changes in 14 days, not 6 months.
Your Playbook Checklist
Before you start, ensure:
Dedicated Budget: Even if small (e.g., $50K for a pilot).
Senior Sponsor: A VP who clears blocks.
Team Focus: At least one dedicated member.
Tie-Breaking System: Decisions within 48 hours.
Pitfalls to Avoid:
Assuming “Yes” = Support: No budget or sponsor means “no.”
Making It a Side Project: Innovation needs focus.
Limitations:
Small organizations may lack resources for separate units.
Truly disruptive innovations may need faster structures.
Success depends on leaders who can balance exploitation and exploration.
This applies to new products, brand extensions, client journey redesigns, ops improvements, and more.
What’s Your Innovation Challenge?
Are you working on something new? Reply or hit me up on X—I’d love to hear how this playbook can help!
Final Thought
Don’t just say yes to the idea. Say yes to the structure that helps it win. Because when you ignore the system… the system kills it.
Until next time, keep innovating—and keep it noble!
Top Links to Deep Dive
Want to go beyond today’s breakdown? Here are the best resources to master this topic:
Harvard Business Review – The Ambidextrous Organization. Link here.
Gies College of Business – Strategic Innovation: Managing Innovation Initiatives. Link here.
Harvard Business School – Greeley Hard Copy, Portable Scanner Initiative (A). Link here.
Harvard Business School – Greeley Hard Copy, Portable Scanner Initiative (B). Link here.
Hype Boards – 50+ statistics on innovation – What do the numbers tell us? Link here.
Harvard Business School – A Clear Eye for Innovation. Link here.
Harvard Business School – USA TODAY: Pursuing the Network Strategy. Link here.