Transforming Biopharma

Beyond process improvement: Why organizational architecture matters with Mike Tushman

Apr 30, 2024
In this insightful discussion, Mike Tushman, a leading Harvard Business School professor and co-founder of ChangeLogic, emphasizes the vital role of organizational architecture in transformation. He explores how successful companies balance exploiting current strategies while exploring future opportunities. Tushman highlights the significance of strong leadership in fostering ambidexterity and innovation, especially in the biopharma sector. He also touches on the impact of generative AI and the need to nurture a culture that embraces experimentation for sustainable growth.
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INSIGHT

Success Breeds Organizational Rigidity

  • Successful incumbents get trapped by their past success, creating rigid structures and culture.
  • This rigidity hinders adaptation to technological shifts and emerging opportunities.
INSIGHT

Dual Strategies Require Dual Architectures

  • Organizations must simultaneously excel at exploiting current strengths and exploring new innovations.
  • This duality requires entirely distinct organizational architectures for each purpose.
ADVICE

Manage Culture as Hard as Structure

  • Don’t rely solely on structure and processes to transform an organization.
  • Leaders must actively manage and measure culture alongside hardware elements to build successful organizations.
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