Organisational ambidexterity performance management via socio-economic performance metrics

Purpose This paper aims to develop and test a socio-economic framework that helps organisations balance exploitation and exploration through the conversion of qualitative dysfunction diagnoses into measurable key performance indicators (KPIs). Design/methodology/approach A five-stage intervention-research project grounded in the socio-economic approach to management (SEAM) was conducted in a mid-sized Lebanese manufacturing firm. Horizontal and vertical diagnoses generated 128 field-note quotes, which were combined with hidden-cost analysis to build a logframe mapping each dysfunction to exploitation or exploration activities. Findings The SEAM process produced a dashboard of 10 SMART KPIs that render the firm’s ambidexterity gap visible. Baseline measurement revealed US$219,600 in hidden costs distributed 86% exploitation and 14% exploration, signalling under-investment in future-oriented activities. After 3 months, human resources hidden costs fell 6.7% (US$11,411). Research limitations/implications Results were derived from a single case with a short horizon; longitudinal and multi-firm studies are needed to test generalisability. Practical implications This paper supplies a replicable five-step template such as negotiation, diagnosis, hidden-cost computation, KPI design, logframe monitoring, which can be used by practitioners to embed ambidexterity metrics into existing dashboards. Social implications By monetising hidden dysfunctions and pairing cost KPIs with innovation KPIs, the framework empowers employees as co-owners of performance data. Early gains in reduced absenteeism and training engagement suggest that transparent metrics can foster healthier workplaces. Originality/value This is the first study to fuse SEAM with organisational-ambidexterity measurement, converting qualitative dysfunction analysis into KPIs that simultaneously steer efficiency and innovation.