Organizational Learning and Influence of emerging business realities Ashima Wadhwa

Organizational Learning Learning is a feedback process Organizational learning embraces both adaptive and generative learning Organizational Learning

Organizational Learning Single-Loop Learning Look for solutions within organization’s policies, plans, values, and rules Error-and-correction process Promotes adaptive learning Promotes adaptive learning Adjusting behavior and processes in response to changing events or trends Promotes generative learning Eliminate problems by changing the underlying structure of the system. Organizational Learning Chapter 12

Organizational Learning Double-Loop Learning Closes gap between desired and actual states of affairs by questioning Modifies organization’s policies, plans, values, and rules to guide action Promotes generative learning Promotes adaptive learning Adjusting behavior and processes in response to changing events or trends Promotes generative learning Eliminate problems by changing the underlying structure of the system. Organizational Learning Chapter 12

Organizational Learning

Organizational Learning Learning Organizations Continual expansion to create desired results New patterns of thinking are nurtured Collective aspiration is set free People learn to learn together New knowledge and capabilities remain even if individuals leave Organizational Learning

Organizational Learning Learning Disciplines Five disciplines Combine to “expand its capacity to create its future” Five disciplines that each involve a body of theory and techniques that must be practiced in order for mastery to develop. When combined, these produce an organization capable of “expanding its capacity to create its future.” Organizational Learning Chapter 12

Organizational Learning Learning Disciplines Systems Thinking Personal Mastery Mental Models Shared Vision Team Learning Systems Thinking Seeing wholes, perceiving the structures that underlie dynamically complex systems, and identifying high-leverage change opportunities Personal Mastery Individual learning, without which organizational learning cannot occur Mental Models Constantly surfacing, testing, and improving our assumptions Shared Vision Generating a common answer to the question, “What do we want to create?” Team Learning Creating alignment Team members think insightfully about complex problems, synergize their knowledge and skills, and produce coordinated action Organizational Learning Chapter 12

Limits of Organizational Learning Challenges to Building Learning Organizations Limited information available for decisions Unscientific reasoning Many practical problems and competing priorities Limits of Organizational Learning

Managing Organizational Innovation Learning at center of innovation and change Innovation Process using a technology or practice for first time Managing Organizational Innovation

Managing Organizational Innovation Learning at center of innovation and change Change Broader concept modifying organizational composition, structure, or behavior New or not new to organization Managing Organizational Innovation

Managing Organizational Innovation Innovation is unpredictable and complex May differ significantly for different types of innovations Strong pro-innovation bias Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model - Overview Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Agenda Setting Identify important problems and search for innovations Triggered by performance gaps Two key factors Who participates in agenda process How participants perceive information Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Matching Needs and capacities matched to innovation Feasibility Decision to adopt or not adopt an innovation Interplay of factors Innovation characteristics Social system characteristics Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Matching Innovation Characteristics Relative Advantage Compatibility Complexity Trial ability Observability Relative Advantage Innovation perceived as superior to current practice Compatibility Consistent with the values, beliefs, history, current practices Complexity Difficult to understand or use Trialability Experiment with the innovation on a limited basis Observability Results of an innovation are visible to others Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Matching Social System Characteristics Network Structure Homogeneity Opinion Leaders Boundary Spanners Absorptive Capacity Organizational Readiness Network Structure Greater variation between local communities than within them. Homophily – changed to homogeneity Similarity between individuals, groups, or organizations Opinion Leaders Hubs in social and professional networks Boundary Spanners Significant social ties both inside and outside the organization Absorptive Capacity Ability to acquire, assimilate, and apply new knowledge Organizational Readiness Function of motivation, resources, and climate Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Restructuring Transition period Implementation involves adaptation of innovation within organization Organizational adaptation generally involves implementation of policies and practices Transition period Targeted organizational members ideally become increasingly skillful, consistent, and committed in their use of an innovation Implementation commonly involves mutual adaptation of the innovation and the organization Organizational adaptation generally takes the form of implementation policies and practices Formal strategies to put the innovation into use, and the actions that follow from those strategies Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Clarifying Organizational members Gain experience Learn about its implications Compare actual versus expected benefits and costs of innovative Critical factors for success Innovation effectiveness The benefits the organization realizes from innovation use Implementation effectiveness The overall consistency and quality of organizational members’ use of an innovation Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Clarifying Innovation either diffuses or stalls Critical factors for success Innovation effectiveness Implementation effectiveness Critical factors for success Innovation effectiveness The benefits the organization realizes from innovation use Implementation effectiveness The overall consistency and quality of organizational members’ use of an innovation Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Clarifying Disseminating innovations throughout organization Diffusion Dissemination Diffusion A passive process Information about an intervention, product, or technology is initially absorbed and acted upon by a small body of highly motivated recipients. Dissemination An active process Special efforts are made to ensure that intended users become aware of, receive, accept and use an innovation Managing Organizational Innovation Chapter 12

Managing Organizational Innovation The Innovation Model – Routinization Final stage in innovation process Incorporated into regular activities Loses its identity as something new and different Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Routinization Depends on whether members perceive innovation as legitimate and valued Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Routinization Depends on allocation of resources Budgetary Personnel Training programs Organizational policies and procedures Supply and maintenance operations Managing Organizational Innovation

Managing Organizational Innovation The Innovation Model – Routinization Strategies Encourage participation by end-users in decision- making processes Provide members latitude to "reinvent" or "adapt" the innovation Managing Organizational Innovation

Influence of emerging business realities:- Large-scale change implemented in a top- down, linear manner is questionable Questionable whether successful large-scale change efforts can be implemented in a top-down, linear, planned manner. Successful large-scale organizational change often occurs through emergent, incremental steps Both problems and solutions arise through repeated interactions among leaders, organizational members, work processes, and environmental factors Influence of emerging business realities:- Chapter 12

Influence of emerging business realities:- Emergent and Incremental Steps Problems and solutions arise through interactions across organization Communication with members is important Consider work processes and environmental factors Questionable whether successful large-scale change efforts can be implemented in a top-down, linear, planned manner. Successful large-scale organizational change often occurs through emergent, incremental steps Both problems and solutions arise through repeated interactions among leaders, organizational members, work processes, and environmental factors Influence of emerging business realities:- Chapter 12

Implementing Large-Scale Organizational Change Kotter’s Transformation Model Eight steps to create and sustain change Establish urgency Create guiding coalition Develop vision Communicate change vision Implementing Large-Scale Organizational Change

Implementing Large-Scale Organizational Change Kotter’s Transformation Model Eight steps to create and sustain change 5) Empower broad-based action 6) Create short-term wins 7) Consolidate gains 8) Anchor new approaches in culture Implementing Large-Scale Organizational Change

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