Exclusive Interview with Katharina Lange – N-Conference 2024 Keynote Speaker

In an ever-changing business landscape, the ability to manage both present operations and future innovations has become a critical skill for enterprise leaders. Anna Cajot, the Negotiation Conference Director, sat down with a Leading Expert on Leadership at the International Institute for Management Development (IMD) Dr Katharina Lange, to discuss the concept of dual transformation and its implications for today’s C-suite executives.

Anna: Thank you for joining me today, Katharina. Could you start by explaining the concept of dual transformation and why the concept of “ambidextrous leadership” is particularly relevant for enterprise leaders today?

Katharina: Certainly. The dual transformation challenge is something we’ve been discussing for a while now, and it’s become increasingly critical for leaders to understand. Dual transformation essentially involves managing two transformations simultaneously. On one hand, you need to continuously optimize your current business model - making it more efficient, more profitable, and ultimately better. This task, often referred to as "optimizing the core," remains a key managerial responsibility.

At the same time, and this has become even more prominent in recent years, leaders must recognize the need to constantly create the new. Innovation is not a luxury; it’s a necessity. Customer demands are changing, and new competitors are emerging, so the pressure to innovate is relentless. What’s become clear is that these two transformations - optimizing the present and creating the future- must happen simultaneously, not sequentially. This simultaneous focus is what makes dual transformation particularly relevant and challenging for today’s enterprise leaders.

Ambidextrous leadership is crucial for successfully managing dual transformation. The term "ambidextrous" literally means using both hands with equal skill, and in this context, it refers to a leader’s ability to manage both the present and the future simultaneously. This means optimizing current operations while also driving innovation and future growth.

Research shows that ambidextrous leaders are rare but possess a significant competitive advantage, particularly at the C-suite level. They can navigate the complexities of maintaining current operations while fostering innovation, which is essential in today’s disruptive business environment.

For organizations, building ambidextrous capabilities can take various forms. Some companies create dedicated innovation teams that operate separately from the core business, allowing them to focus solely on future-oriented projects. Others integrate ambidextrous thinking across all levels, ensuring that even mid-level managers are equipped to balance present and future priorities.

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Anna: Can you share an example of a leader who successfully navigated and implemented dual transformation?

Certainly. A particularly compelling example is the case of Zuellig Pharma, an Asian pharmaceutical wholesaler. The company faced a critical short-term challenge - a malfunctioning SAP system, which is vital for their operations. The incoming CEO recognized that this operational crisis needed immediate attention, but he successful implementation of the SAP system enabled the company to develop new digital solutions also saw an opportunity for long-term transformation.

By resolving the SAP issue, the CEO not only addressed the immediate problem but also set the stage for a broader digital transformation. The successful implementation of the SAP system enabled the company to develop new digital solutions, such as digital payment capabilities and advanced tracking systems. These innovations became crucial during the COVID-19 pandemic, allowing ZuelligPharma to deliver essential medications even in highly restricted areas. This case exemplifies how addressing a short-term challenge can lead to significant long-term opportunities when approached with a dual transformation mindset.

Read the full case study here: https://www.imd.org/research-knowledge/strategy/case-studies/zuellig-pharma-a-a-case-for-transformation/

Watch the video: https://www.imd.org/research-knowledge/digital/videos/building-resilience-into-your-organization/

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Anna: What are the implications of ambidextrous leadership for team dynamics within an organization?

Katharina: The implications can be significant. When we talk about ambidextrous leadership at the team level, it’s about creating a balance between team members who are focused on optimizing the core business and those who are driving innovation. Some organizations choose to ring-fence their innovation teams, giving them the freedom to operate independently, with different KPIs and a more flexible working style. 

However, other organizations integrate these capabilities across the board, ensuring that all teams are involved in both present and future-focused activities. The approach you choose depends on your specific business situation and the type of organization you lead. But regardless of the approach, fostering a culture where future-focused thinking is valued across the organization is crucial.

Engaging with the future, understanding emerging trends, and recognizing that competitive advantage is never permanent are vital components of this approach. It’s about ensuring that every part of the organization is prepared to face the inevitable challenges and seize the opportunities that come with the future.

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Anna: In closing, what final advice would you offer to C-level executives who are grappling with the dual transformation challenge?

Katharina: My final advice would be to maintain a clear balance between immediate operational demands and long-term strategic planning. Make sure you are dedicating time and resources to both. The business environment is more competitive than ever, and the ability to navigate dual transformation effectively can be the difference between leading a thriving organization and one that struggles to keep pace.

As a leader, cultivating ambidextrous capabilities within yourself and your organization is not just a good strategy - it’s a necessity. By doing so, you’ll be better equipped to not only survive in today’s market but to position your organization for success in the years to come.

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Meet Katharina in person at the Negotiation Conference 2024. Book your ticket: www.n-conference.com/conference/zurich