Learning Organization-Creating a Learning Organization and Leading it
The Concept of Learning Organization
Continued
from
Page 1
Principles of Learning Organization
Understanding the concept of learning organization needs a fresh look at the
realities of life in organization. Clarity thus obtained shows that there are
some basic principles according to which the learning has to happen, to be
effective. Realistic understanding and acceptance of these principles is helpful
in transforming any organization into a continually learning organization. The
principles are:
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• Yesterday’s solutions are
generally the source of today’s problems. The problems that crop up today have their seeds sown in the solutions
of the past. But this is not that obvious to the managers at the first look.
Because, the people who invent solutions and who inherit problems are often
different. For example, a company had roaring sales in a quarter. But the
sales figures were boosted by a rebate program. The manager responsible was
hailed as hero and promoted. His successor was expected to perform at the same
levels. But he could not. What is the reason? New manager’s incompetence? Need
not be. Because, when the earlier manager was offering goods at discounted
rates, potential customers grabbed products at lower prices. Hardly any are
left with the need to buy the product. How can the new manager sell then? |
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•With wrong system in place,
solution makes the problem worse.
Look at the problem of malnutrition in developing countries. When the aid flowed
from developed countries to developing countries, the situation appeared to be
improving. As aid aided, malnutrition levels declined, resulting in lower infant
mortality rates. And this reduced death rates resulted in burgeoning population.
This time, the problem of malnutrition was even more threatening. The solution
here, in reality, mitigated the problem. There must be some problem with the
system in developing countries.
• The Right solutions are hardly
obvious and easy.Most of the organizations commit the mistake of applying familiar
solutions indiscriminately (even to new problems). Had the problem been simple,
and solution obvious and easy, the problem would not have existed in the first
place. But often organizations keep applying the same solutions to the
fundamental problems as well as new problems.
• Easy or familiars solution can be worse than the problem.
Easy or familiar solutions may make the system ineffective. Generally, when
there is a fundamental problem, any organization takes recourse to an easy
solution. But this rarely solves the problem completely. The fundamental problem
resurfaces. Again the easy solution is applied, the problems appear to have
disappeared. Again resurfaces. Again solution. This way easy solution becomes an
addiction. This process goes on and on, while the organization’s capacity to
really solve the problem deteriorates. Organization gets addicted to the easy
solution, loses its capacity to solve its problem entirely, finally succumbing
to that. Any long-term solution has to enhance the ability of the system to
carry its burdens.
• Faster is slower Our culture glorifies fast growth and looks down upon slow growth. This can be
wrong. Look at what happened to “People express” of the US. “People express” was
offering the same proposition what Southwest is offering today. It was offering
same low-price, no frills, good quality service, people friendly management. Why
then Southwest shines like a star, when People express disappeared from skies?
People express created demand that far beyond its ability to offer quality
service. It surely had physical infrastructure, but it could not cultivate the
necessary attitude in people as quickly as it created demand. As a result,
quality of service dunked and only price sensitive customers were flying
airline. This was not economical and the airline was grounded. This is the
precise reason why Southwest is expanding slowly and cautiously. In a service
organization, attitude of employees is a crucial factor. Recruiting right
people, and cultivating the attitude is slowing the growth of Southwest. But it
is being built to last, slowly and steadily.
• Cause and effect need not be closely related in time and space. We are brought in such a way that we see effect immediately following cause. If
a child does not do well in the exam, it is concluded that he did not study well
for the exam. But the reasons can perhaps go till the parent’s education as a
child. Had the parent studied hard, he might have been able to teach his child,
and inculcate the same hardworking attitude in his child as well. In this case,
it is parent’s childhood preparation which is influencing child’s education. But
we hardly accept such valid explanations. In organizations, if there is problem
in manufacturing, managers point the finger at manufacturing. But not on over
promises made by sales people. When sales people cannot meet their targets,
managers try to motivate them by giving incentives. The real problem can be in
the defective design of the product that was designed in the previous decade.
Faulty design is the cause here, declining sales is the effect. There can be a
gap of many years between these two. But hardly do organizations think on these
lines.
• Possibility of “and”
Organizations in 1970s assumed that it is impossible to produce a high
quality product at low costs. They assumed that higher quality products need
longer assembly times, more expensive materials & components, and more expensive
quality controls. And concluded that keeping all these would increase cost of
manufacturing. But they overlooked that improvements in work processes can
minimize rework, dispense with quality inspectors, minimize customer complaints,
reduce warranty costs, increase customer loyalty, and reduce
advertising & sales promotions while increasing the quality of product. Japanese
realized this far before Americans and took full advantage of it. Organizations
must accept the possibility: apparently contradictory goals may be contradictory
only in perceptions.
Learning Organization in Practice
Personal Mastery and Systems Thinking
Leading a Learning Organization
© Icfai Press. Global CEO •
December 2003, All Rights
Reserved.
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