BUILDING A LEARNING ORGANIZATION David A. Garvin

LEARNING ORGANIZATION “ A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights ” “ New ideas are essential if learning is to take place ” “ Without accompanying changes in the way that work gets done, only the potential for improvements exist ”

ORGANIZATION AND QUALITIES  Meaning –Plausible, well grounded definition, actionable and easy to apply.  Management –Clear guidelines for practice, filled with operational advice rather than high aspirations.  Measurement –Tools for assessing organizations rate and level of learning to ensure gains have been made.

ORGANIZATION AND QUALITIES  Three distinct stages. –Cognitive Exposed to new ideas, expand their knowledge and begin to think differently. –Behavioral Employees internalize new insights and alter behavior. –Performance Improvement Changes in behavior leading to measurable improvements in results.

BUILDING BLOCKS  Systematic Problem Solving  Experimentation  Learning from Past Experience  Learning from others.  Transferring knowledge  Measuring learning Each is accompanied by a distinctive mindset, tool kit and pattern of behavior.

SYSTEMATIC PROBLEM SOLVING  Rely on scientific method for diagnosing problems “ plan, do, check, act ”  Data  Statistical analysis –Generating ideas and collecting information –Reaching consensus –Analyzing and displaying data –Planning actions

EXPERIMENTATION  On-going programs –Series of small experiments –Steady flow of new ideas –Incentive system –Need managers and employees trained in evaluating and performing experiments

EXPERIMENTATION  Demonstration Projects –First projects to embody principles and approaches company hopes to adopt on a larger scale –Establish policy guidelines and decision rules for later projects –Encounter severe tests of commitment from employees (testing rule change) –Limited impact on rest of organization (until implemented)

LEARNING FROM PAST EXPERIENCE  Companies revive successes and failures.  Assessment done systematically and in an open and accessible forum “ Those who cannot remember the past are condemned to repeat it ”

LEARNING FROM OTHERS  “ Most powerful insights come from looking outside ones immediate environment to gain a new perspective ”  SIS-Steal ideas shamelessly  Benchmarking –Ongoing investigation and learning experience that ensures the best industry practices are uncovered, analyzed, adapted and implemented.

TRANSFERRING KNOWLEDGE  Knowledge must be spread quickly and efficiently throughout the organization  Maximum impact when shared broadly –Written reports –Oral reports –Site visits and tours –Personnel rotation programs –Standardization programs –Education and training programs

MEASURING LEARNING  “ If you can ’ t measure it, you can ’ t manage it ”  Actual data comparision  Learning or experience curves. –Incomplete measures, ignore other competitive variables, like quality, delivery or new product introductions

CONCLUSION  Learning organizations foster an environment that is conducive to learning  Learning organizations open up boundaries and stimulate the exchange of ideas