Designing and Leading a Learning Organization 15 Designing and Leading a Learning Organization

Chapter Objectives Trace the evolution of leadership through four eras to the learning leadership required in many organizations today. Recognize how leaders build learning organizations through changes in structure, tasks, systems, strategy, and culture. Know when and how horizontally organized structures provide advantages over vertical, functionally organized ones. Distinguish between tasks and roles and how each impacts employee satisfaction and organizational performance. Meet the dual challenge of supporting both efficiency and learning by using ambidextrous organization design elements, embracing technology, and using after-action reviews.

Leadership Evolution Matrix (next slide) along dimensions of Environment Stable – remains the same over few years Chaotic – environment shifts abruptly/unpredictably; leaders support risk/learning Scope Micro – on individual basis & concerned with specific tasks and situations Macro - on community basis & looks at concerned with purpose, strategy & culture

Ex. 15.1 Leadership Evolution ENVIRONMENT Stable Chaotic Era 2 Rational Management Era 3 Team Leadership Micro Behavior theories Contingency theories Setting: Vertical hierarchy, bureaucracy Management functions Confusion Empowerment Quality Setting: Horizontal organization Cross-functional teams Downsizing Scope Era 1 Great Man Leadership Era 4 Learning Leadership Trait theories Setting: Pre-bureaucratic organization Administrative principles Shared vision, alignment, relationships Facilitate change and adaptation Setting: Learning organization E-Business Macro

Learning A change in behavior or performance that occurs as a result of experience

Learning Organization Key word: “resilience” Each person in the organization involved in identifying/solving problems Organization continues to grow/change to meet new challenges

Adaptive Learning Cycle A cycle of action, feedback, and synthesis that all living organisms share

Ex. 15.2 The Adaptive Learning Cycle Action Sensing Deciding Synthesis Feedback Learning

Learning Organization One in which everyone is engaged in identifying and solving problems

Learning Organization Leaders encourage experimentation, taking risks, making mistakes, changing Can lead to new products/services and better ways of doing business Average lifespan of a Fortune 500 Company only 50 years because focus is on profit, not learning/change Learning organization based on equality, open info, little hierarchy, culture that promotes learning, empowerment, collaboration with other departments and firms As Opposed to traditional efficient organizations

Ex. 15.3 Two Models of Organization Efficient Performance (Hard, rational model) Vertical Structure Routine tasks Rigid culture Formal systems Competitive strategy

Collaborative strategy Ex. 15.3(contd.) Learning Organization (Soft, intuitive model) Horizontal structure Empowered roles Adaptive culture Personal networks Collaborative strategy

Horizontal Structure Learning Organizations characterized by horizontal structures – Structure created around workflows rather than departments Process-based, with people having access (communication & info) to each other in the process-chain Characterized by “self-directed” teams Boundaries between departments blurred/minimized

Ex. 15.4 Evolution of Vertical to Horizontal Structure Vertical functional organization B. Functional organization with process overlays

Horizontal organization based on processes Ex. 15.4 (contd.) C. Horizontal organization based on processes

Tasks Versus Roles Task: A narrowly defined work assignment In stable environments, tends to be rigidly defined OK for stable environments – old organizations Akin to Burn & Stalker’s mechanistic organization Role: A part in a social system Has discretion and responsibility Suitable for learning organizations Akin to Burn & Stalker’s organic organization

Networks Systems worked well in old organizations – formal systems to manage growing complexity; however, may stop the flow of vital info New organizations need networks for quick, complete info

Ex. 15.5 An Organizational Communication Network (adapted): Marketing Manufacturing Engineering David Sharon

Competition versus Collaboration Traditional organizations: Strategy flows downwards Rigid culture Learning organizations: Strategy flows from anywhere Strategy also emerges from customers, suppliers, even competitors (such organizations have permeable boundaries) Adaptive culture

Leadership Challenge: Ambidextrous Organizations Flexible organizations in which leaders incorporate structures and management processes that are appropriate to innovation and learning, as well as to the efficient implementation of ideas

Ambidextrous Organizations: how? Balance efficiency & learning Embrace new technology – builds bridges and facilitates info exchange – consider concept of knowledge management Using after-action reviews – debriefs, take time to see what could have been done better (reflection) – means of learning

Knowledge Management The efforts to systematically gather knowledge, make it widely available, and foster a culture of collaboration and learning