AGC Selected for Stanford Graduate School of Business Case Study
as a company practicing “organizational ambidexterity” as advocated by Professor Charles A. O’Reilly
AGC (Headquarters: Tokyo; President: Takuya Shimamura) is the first Japanese company to be featured in a graduate school case study as a company that implements “organizational ambidexterity” as advocated by Professor Charles A. O’Reilly of the Stanford Graduate School of Business.
“Organizational ambidexterity” is a management method for exploring new pillars of business while also taking advantage of existing business. It is drawing attention as a theory showing how mature companies can adapt to the changing times and continue to grow. Professor O’Reilly states that the essence of “organizational ambidexterity” is “organizational evolution”, and that in order for an organization to adapt to changes in the business environment, the key for ambidexterity is the management of organizational cultures and a sense of balance that allows different cultures to coexist. In other words, O’Reilly argues that the ability to create an organizational structure that matches the characteristics of both new and existing businesses is the most important management issue in a mature organization, and a role that the executives and other leaders must fulfill.
This case study, named “Your Dreams, Our Challenge” based on AGC’s brand statement, highlights how AGC practices “organizational ambidexterity”. The authors of this study, Stanford University Graduate School of Business Professor Charles O’Reilly, Professor Ulrike Schaede of the University of California, San Diego, and management consultant Masanori Kato, state that “they took up this case study because not only does AGC explore new business (strategic businesses) while pursuing existing business (core businesses), but also they focus on reviewing their organizational culture, which is key to implementing ‘organizational ambidexterity’”.