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The exploration-exploitation dilemma

The exploration-exploitation dilemma

Great innovators are known for risk-taking and experimentation. But optimising needs a different skill-set that relies on refinement and efficiency. It is then rare to find people that can innovate and optimise.

A typical story is that a founder launches a startup, successfully grows it through the initial stages, then gets replaced by a more experienced CEO. However, the best results are produced when exploration and exploitation coincide.

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How to cultivate an ambidextrous mindset

The key to success is to balance exploration and exploitation.

  • Conduct an ambidexterity audit. Consider how much time, energy, and money you are dedicating to exploration relative to exploitation. Ensure that you are not dedicating100% to one or the ...

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The difference between exploration and exploitation

  • Exploration: The focus is on experimentation, risk-taking, discovery, and innovation. People who thrive here are more flexible and comfortable with uncertainty.
  • Exploitation: The focus is on execution, refinement, and efficiency. Successfu...

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Avoiding the success trap

Many organisations focus on the exploitation of their historically successful business activities while failing to explore new territory to improve their long-term success.
Famous examples:

  • Polaroid didn't respond to the transitio...

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