By Dr. Sam SakerDr. Sam Saker

The making of theThe making of the

• What “Learning Organization” means?What “Learning Organization” means?• The five disciplines (brief overview)The five disciplines (brief overview)

• What are the main Characteristics of the Learning What are the main Characteristics of the Learning Organization?Organization?

• Why become a “Learning Organization”?Why become a “Learning Organization”?

• How can we evolve into a “Learning Organization”?How can we evolve into a “Learning Organization”?• Its building blocksIts building blocks• Example of successExample of success• First (baby) stepsFirst (baby) steps

O u r Le a r n

i n g

O u r Le a r n

i n g

O b j e c t i

v e s T o d a y

O b j e c t i

v e s T o d a y

What does “Learning Organization” What does “Learning Organization” mean?mean?

Senge -1990

Garvin -1993

A learning organization is "an organization that is

continually expanding its capacity to create its

future""an organization skilled at creating, acquiring, and transferring knowledge,

and at modifying its behavior to reflect new

knowledge and insights.”

Peter Senge [1994] proposed the framework of the learning organization:

Personal masteryPersonal mastery (learning individual). Mental modelsMental models (learning individual). Shared visionShared vision (learning team). Team learningTeam learning (learning team). Systems thinkingSystems thinking (learning organization).

Peter Senge [1994] proposed the framework of the learning organization:

Personal masteryPersonal mastery (learning individual). Mental modelsMental models (learning individual). Shared visionShared vision (learning team). Team learningTeam learning (learning team). Systems thinkingSystems thinking (learning organization).

Personal MasteryPersonal Mastery Individual learning as prerequisite to OLIndividual learning as prerequisite to OL True individual learner never arrives – Life-True individual learner never arrives – Life-

long!long! It is a process – one can never possess it as an It is a process – one can never possess it as an

end!end! Personal mastery people are aware of their Personal mastery people are aware of their

ignorance, their competence, their growth ignorance, their competence, their growth areas.areas.

They are deeply self-confident!They are deeply self-confident!

Personal MasteryPersonal Mastery Individual learning as prerequisite to OLIndividual learning as prerequisite to OL True individual learner never arrives – Life-True individual learner never arrives – Life-

long!long! It is a process – one can never possess it as an It is a process – one can never possess it as an

end!end! Personal mastery people are aware of their Personal mastery people are aware of their

ignorance, their competence, their growth ignorance, their competence, their growth areas.areas.

They are deeply self-confident!They are deeply self-confident!

Creative Tension

Back

Mental ModelsMental Models Assumptions, generalizations, pictures and images Assumptions, generalizations, pictures and images

that influence how we see the world an take that influence how we see the world an take actions.actions.

We are often unaware of their impact.We are often unaware of their impact. To do, we need to look inward Discover our To do, we need to look inward Discover our

mental models, bring them to surface, and mental models, bring them to surface, and question them.question them.

Ability to hold meaningful conversations with Ability to hold meaningful conversations with others exposing own thinking effectively to others’ others exposing own thinking effectively to others’ influenceinfluence

Free of internal politics & ‘games’ Free of internal politics & ‘games’ fostering fostering openness. openness.

Mental ModelsMental Models Assumptions, generalizations, pictures and images Assumptions, generalizations, pictures and images

that influence how we see the world an take that influence how we see the world an take actions.actions.

We are often unaware of their impact.We are often unaware of their impact. To do, we need to look inward Discover our To do, we need to look inward Discover our

mental models, bring them to surface, and mental models, bring them to surface, and question them.question them.

Ability to hold meaningful conversations with Ability to hold meaningful conversations with others exposing own thinking effectively to others’ others exposing own thinking effectively to others’ influenceinfluence

Free of internal politics & ‘games’ Free of internal politics & ‘games’ fostering fostering openness. openness.

Building Shared VisionBuilding Shared Vision Genuine vision results in people excelling and Genuine vision results in people excelling and

learning because they want to.learning because they want to. The lack exists in failure to translate vision into The lack exists in failure to translate vision into

shared vision.shared vision. How? By unearthing shared ‘Pictures of the future’ How? By unearthing shared ‘Pictures of the future’

causing genuine commitment and enrolment rather causing genuine commitment and enrolment rather than compliance.than compliance.

Dictating a vision is counter-productive.Dictating a vision is counter-productive.

Building Shared VisionBuilding Shared Vision Genuine vision results in people excelling and Genuine vision results in people excelling and

learning because they want to.learning because they want to. The lack exists in failure to translate vision into The lack exists in failure to translate vision into

shared vision.shared vision. How? By unearthing shared ‘Pictures of the future’ How? By unearthing shared ‘Pictures of the future’

causing genuine commitment and enrolment rather causing genuine commitment and enrolment rather than compliance.than compliance.

Dictating a vision is counter-productive.Dictating a vision is counter-productive.

Team LearningTeam Learning The process of aligning and developing the The process of aligning and developing the

capacities of team to create the results its capacities of team to create the results its members truly desire’members truly desire’

It builds on personal mastery and shared vision.It builds on personal mastery and shared vision. Also needs people to act together (learning Also needs people to act together (learning

together together growing together growing together rapid organizational rapid organizational success) success)

It starts with ‘dialogue’ It starts with ‘dialogue’ Suspended assumptions Suspended assumptions entering into thinking together entering into thinking together results not results not attainable individually!attainable individually!

Learning how not to interact in teams (avoiding the Learning how not to interact in teams (avoiding the negative)negative)

Team LearningTeam Learning The process of aligning and developing the The process of aligning and developing the

capacities of team to create the results its capacities of team to create the results its members truly desire’members truly desire’

It builds on personal mastery and shared vision.It builds on personal mastery and shared vision. Also needs people to act together (learning Also needs people to act together (learning

together together growing together growing together rapid organizational rapid organizational success) success)

It starts with ‘dialogue’ It starts with ‘dialogue’ Suspended assumptions Suspended assumptions entering into thinking together entering into thinking together results not results not attainable individually!attainable individually!

Learning how not to interact in teams (avoiding the Learning how not to interact in teams (avoiding the negative)negative)

Systems thinkingSystems thinking The cornerstone of the learning organizationThe cornerstone of the learning organization

Organizations must be viewed as complex Organizations must be viewed as complex systems.systems.

We must see organizations as dynamic processesWe must see organizations as dynamic processes Result in more appropriate actionsResult in more appropriate actions Cause and effect are far apart – Long range…Cause and effect are far apart – Long range… Resist focusing on close solutions (usually having Resist focusing on close solutions (usually having

near relief but long range costs)near relief but long range costs) System blindness System blindness ‘cycles of blaming and self- ‘cycles of blaming and self-

defense’defense’

Systems thinkingSystems thinking The cornerstone of the learning organizationThe cornerstone of the learning organization

Organizations must be viewed as complex Organizations must be viewed as complex systems.systems.

We must see organizations as dynamic processesWe must see organizations as dynamic processes Result in more appropriate actionsResult in more appropriate actions Cause and effect are far apart – Long range…Cause and effect are far apart – Long range… Resist focusing on close solutions (usually having Resist focusing on close solutions (usually having

near relief but long range costs)near relief but long range costs) System blindness System blindness ‘cycles of blaming and self- ‘cycles of blaming and self-

defense’defense’

The Laws of the Fifth DisciplineThe Laws of the Fifth Discipline• Today’s problems come from yesterday’s “solutions”Today’s problems come from yesterday’s “solutions”• The harder you push, the harder the system pushes backThe harder you push, the harder the system pushes back• Behavior grows better before it grows worseBehavior grows better before it grows worse• The easy way out usually leads back inThe easy way out usually leads back in• The cure can be worse than the diseaseThe cure can be worse than the disease• Faster is slowerFaster is slower

The Laws of the Fifth DisciplineThe Laws of the Fifth Discipline• Cause & effect are not closely related in time and spaceCause & effect are not closely related in time and space• Small changes can produce big results – but the areas Small changes can produce big results – but the areas

of highest leverage are often the least obviousof highest leverage are often the least obvious• You can have your cake and eat it too – but not at onceYou can have your cake and eat it too – but not at once• Dividing an elephant in half does not produce two small Dividing an elephant in half does not produce two small

elephantselephants• There is no blameThere is no blame

• It has a culture where the company regards changing as learning and learning as the cornerstone

• It’s actions are proactive rather than reactive or adaptive

•Learning is integrated with business objectives and strategies

•Learning is regarded as an ongoing process

What are some characteristics ofWhat are some characteristics of a true “Learning Organization”?a true “Learning Organization”?

• Experience is regarded as the ultimate stage of learning Experience is regarded as the ultimate stage of learning

What are some characteristics ofWhat are some characteristics of a true “Learning Organization”?a true “Learning Organization”?

• Learning focuses values and competencies development Learning focuses values and competencies development through risk taking & shared experience while maintaining through risk taking & shared experience while maintaining damage limitation through developmental support systems damage limitation through developmental support systems (individuals are encouraged to take risks and learn what they themselves find necessary for achieving organization’s goals while being trusted and made responsible)

• Learning utilizes the idea of "The Learning Wheel" Learning utilizes the idea of "The Learning Wheel"

What is the “Learning What is the “Learning Wheel” concept?Wheel” concept?

Understand&

Question

Burea

ucra

cy

Learning Org

• Innovate for Customer Satisfaction

• Replicate

• Follow the Formula

• Mass Production

Bureaucracy

Learning Org

• Hierarchy-Vertical

• Chain of Command

• Big Picture at Top

• Network-Horizontal

• Many Project Teams

• Big Picture with All

Skills

• Informal

• Coordinated by Mutual

Adjustments• Conformity

• Please the boss

• Everything is in Place

• Standardized

• Coordinated by Rules

•Standard OPs

• Creativity - Learning

• Participation dialogue

• Politics: priorities/strategies

• Flexible Job Boundaries

• Passion about their work

• Role clarity

• Dispassionate

• Versatile

• Cross-trained

• Narrowly specialized

• Fulfill shared vision of Organization mission in a community like environment

• Create profits

• Rising Share Value (For investors)

The

7-Points

Difference

Bureaucracy

Learning Org

BureaucracyLe

arni

ng O

rg

Bureaucracy

Learning Org

Bureaucracy

Learning Org

Learning Org

Bureaucracy

Strate

gy

Structure

SystemsStyle

Staff

Super-ordinateGoals

Why become a Learning Why become a Learning Organization?Organization?

• For superior performance and competitive advantage

• For enhancing customer relations

• To avoid decline

• To improve quality

• To understand risks and diversity more deeply

• For innovation

• For our personal and spiritual well being

Why becomeWhy becomeA LearningA Learning

OrganizationOrganization

• To increase our ability to manage change

• For understanding

• For energized committed work force

• To expand boundaries

• To engage in community

• For awareness of the critical nature of

interdependence

• Because the times demand it

Why becomeWhy becomeA LearningA Learning

OrganizationOrganization

““The real competitive advantage for The real competitive advantage for organizations is their ability to learn faster organizations is their ability to learn faster than the competition, to generate and share than the competition, to generate and share knowledge and to continuously improve.”knowledge and to continuously improve.”

-Peter Senge-Peter Senge

How can we become a true How can we become a true “Learning Organization?”“Learning Organization?”

Leaders set the necessary conditions for developing an Leaders set the necessary conditions for developing an effective learning capability.effective learning capability.

Leaders take strategic action and make specific Leaders take strategic action and make specific interventions to ensure that learning can occur.interventions to ensure that learning can occur.

It starts with It starts with leadersleaders

1.1. They develop a widely shared vision They develop a widely shared vision supported by employees to influence the supported by employees to influence the

learning capability of the organization.learning capability of the organization.

2.2. They introduce and maintain mechanisms They introduce and maintain mechanisms to facilitate the transfer of knowledge to facilitate the transfer of knowledge

between work teams…between work teams…

HowHow

What are the Building Blocks of a What are the Building Blocks of a true “Learning Organization”?true “Learning Organization”?

1. CLARITY AND SUPPORT FOR 1. CLARITY AND SUPPORT FOR MISSION AND VISIONMISSION AND VISION

GE and Motorola are good

examples of companies where

senior managers and the CEO

spend considerable time

articulating a vision and

creating employee

commitment to achieving it.

2. SHARED LEADERSHIP AND INVOLVEMENT2. SHARED LEADERSHIP AND INVOLVEMENT

Nortel has frequent training Nortel has frequent training sessions and workshops that sessions and workshops that include all employees, where include all employees, where some seniors and a manager are some seniors and a manager are always part of.always part of.

3. A CULTURE THAT ENCOURAGES 3. A CULTURE THAT ENCOURAGES EXPERIMENTATIONEXPERIMENTATION

        

At 3M, experimentation is built into work At 3M, experimentation is built into work activitiesactivities!!!!!!

At Hewlett-Packard At Hewlett-Packard time-activated time-activated obsolescence obsolescence !!!!!!

4. ABILITY TO TRANSFER KNOWLEDGE 4. ABILITY TO TRANSFER KNOWLEDGE ACROSS ORGANIZATIONAL BOUNDARIESACROSS ORGANIZATIONAL BOUNDARIES

Xerox and AT&T have programs that benchmark Xerox and AT&T have programs that benchmark the managerial practices of the best companies in the managerial practices of the best companies in an industry and their competitorsan industry and their competitors!!!!!!

Xerox and AT&T have programs that benchmark Xerox and AT&T have programs that benchmark the managerial practices of the best companies in the managerial practices of the best companies in an industry and their competitorsan industry and their competitors!!!!!!

5. TEAMWORK AND COOPERATION5. TEAMWORK AND COOPERATION

Honda is the best example of a Honda is the best example of a learning company with a learning company with a strong focus on teamwork and strong focus on teamwork and cooperation. cooperation.

SUPPORTING FOUNDATIONSSUPPORTING FOUNDATIONS

EFFECTIVE ORGANIZATIONAL DESIGNEFFECTIVE ORGANIZATIONAL DESIGN

EMPLOYEE SKILLS AND COMPETENCIESEMPLOYEE SKILLS AND COMPETENCIES

A Detroit (USA) luxury car manufacturer embarked on a new car program, Epsilon – 3-years tight deadline.

Challenges:

-Meeting many quality standards- Staying within Budget- Delivering before deadline

Case Case Study

Study

The Journey of Success

- Teamed up with a consulting-research team from MIT.

-A "core learning team" was formed with ten Epsilon managers and several staff from MIT

-Began learning and practicing the basic concepts and tools of learning organization - Leadership group first engaged themselves in some very serious learning and change

Case Case Study

Study

- Began to teach and coach the rest of the Epsilon staff with the help of internal consultants

- Training agenda and content wad developed by the Core Learning Team.

-Investigate the biggest challenges and strengths!

- Main focus

“Why are our parts always late?”

Case Case Study

Study

Journey o

f

Success

- Began to teach and coach the rest of the Epsilon staff with the help of internal consultants

-Working together system map (casual loops) Root Root Cause & Point of LeverageCause & Point of Leverage were discovered!!!

Root cause/leverage point Root cause/leverage point

Engineers not reporting problems until very late causing other dependent elements delays compounding

the problem!!!

Case Case Study

Study

Journey o

f

Success

Why this happened consistently?Why this happened consistently?

"engineering culture" (don't report any problem until you know the solution)… plus …

“company culture” (reporting problems would be held against persons)

Case Case Study

StudyJourn

ey of

Success

Repairing the Root Cause

-Establishing greater trust "bearing bad tidings is safe".

- No one has all the answers (even managers).

- The good of the whole program was more important thanmore important than some individuals fears

Chief Aim: Create a culture very different from the one they have experienced many years at their company!

Case Case Study

StudyJourney o

f

Success

Repairing the Root Cause

- Engineers make their own decisions cross-functional collaboration was expected and rewarded.

- These insights were developed first among the core learning team, over eight months of regular meetings.

- “Learning labs” were held, firstly involving one quarter of entire staff, with many briefings and discussions held with all of them. (focusing on changing the norm of communication)!!!

Case Case Study

StudyJourney o

f

Success

Repairing the Root Cause

-The learning labs included various experiential methods.

- Employees saw senior Epsilon managers actually change their own behavior Less authoritarian, more open to other view points, and collaborating on solutions instead of punishing against reported serious problems and punishing honesty)

Case Case Study

StudyJourney o

f

Success

SUCCESS

Launch of the new model went smoothly, on-time (as intended) instead of the usual last-minute panic and pandemonium

The project was also well under budget, saving some $60 million in re-tooling costs

Customer reaction and various quality measures on the new vehicle were also well above previous levels.

Case Case Study

StudySUCCESS !!

!

““It is the nature of man to rise to greatness if It is the nature of man to rise to greatness if greatness is expected of him.”greatness is expected of him.”

--John Steinbeck--John Steinbeck

ProcessesSlow

Attitudes

Attitudes

CommitmentCommitment

Management

ReflectReflect

AnalyzeAnalyze

StrategicStrategicPlanningPlanning New Produc

ts

EmployeesNo RushNo Rush

LearningLearningTime

TimeProductivity

No

Boundar

iesForums

Benefits

First First StepsSteps

Training

Training

Brainstormi

ngProblem SolvingEvaluating

ConferencesConferences

MeetingsMeetings

Project Teams

Project TeamsCross-

Organizational

Or

Customers &

Suppliers

Strategic ReviewsStrategic ReviewsSystems Audits

Systems AuditsInt. BenchmarkingInt. Benchmarking

Study MissionsStudy MissionsSymposiumsSymposiums

Learning

Environment

1-Foster

Learning due

to knew

knowledge

2- Wisdom of

Implications

Fresh

Ideas

Current

Conditions

Eliminate barriers that impede Eliminate barriers that impede learning learning

Begin to move learning up on agenda

Begin to move learning up on agenda

Shift of focus towards ongoing

Shift of focus towards ongoing learninglearning

  " Organization-wide learning involves change " Organization-wide learning involves change in culture and change in the most basic in culture and change in the most basic managerial practices, not just within a managerial practices, not just within a company, but within a whole system company, but within a whole system of management. ... I guarantee that when you of management. ... I guarantee that when you start to create a learning environment, people start to create a learning environment, people will not feel as though they are in control."will not feel as though they are in control."    

----Peter SengePeter Senge

A one time improvement does not equal Learning A one time improvement does not equal Learning Organization…Organization…

SShell Oil planning director Arie de Geus, says hell Oil planning director Arie de Geus, says

that over the long run, superior performance that over the long run, superior performance depends on superior learning. depends on superior learning.

““The person who figures out how to The person who figures out how to harness the collective genius of the harness the collective genius of the people in his or her organization is people in his or her organization is going to blow the competition away.”going to blow the competition away.”

Walter Wriston -- Citibank CEO

““The most successful corporation of the The most successful corporation of the 1990s will be something called a 1990s will be something called a learning organization, a consummately learning organization, a consummately (perfectly) adaptiveadaptive enterpriseenterprise.”.”

Fortune Magazine

ByBy

Dr. Sam Saker

Thank you very much