The Ambidextrous CEO

Despite the pressure to shore up the existing business, one of Lawrie’s first moves was to create a stand-alone unit for open source technology, which was a key component of his vision for the company’s future. He knew that open source was emerging as a serious disruptive threat in the software industry, especially in health care. It held the promise of seamless data exchange between the many players in health care delivery. Lawrie believed that Misys had an opportunity to get out in front and be the disruptor...

Against this background, Open Source seemed to be more trouble than it was worth. The leaders of the core units advised Lawrie to unlock capital by selling off the investment. “Cut it now,” one executive told him. “You can’t afford the distraction.”

But Lawrie did more than just protect the investment. At the height of the financial crisis, he gave it an even stronger organizational voice: Open Source was the only Misys health care asset not folded into the core Allscripts unit. This permitted Open Source leaders to sit at the table with Allscripts top executives and compete for resources. Every strategic move involved trade-offs between more-immediate returns from Allscripts and longer-term returns from Open Source. The tensions reflected the power struggle over the firm’s identity and future. For example, the head of Allscripts wanted his proprietary software to dominate, and he saw Open Source as a direct threat. His fears proved well-founded; Open Source soon started to beat out Allscripts for contracts.