The Learning Organization and Knowledge Management Chapter 15 The Learning Organization and Knowledge Management PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

Learning Objectives After reading and studying this chapter and doing the exercises, you should be able to: Describe the 4I framework of a learning organization. Identify the building blocks, or key characteristics, of a learning organization. Recognize organizational conditions favoring knowledge management (KM). Pinpoint strategies and techniques for knowledge management. Specify methods for sharing information within an organization. Copyright © 2005 South-Western. All rights reserved.

The Learning Organization An organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge and insights. Copyright © 2005 South-Western. All rights reserved.

The 4I Framework of Organizational Learning Source: Mary M. Crossan, Henry W. Lane, and Roderick E. White, “An Organizational Learning Framework: From Institution to Institution,” Academy of Management Review, July, 1999, p. 525. Copyright © 2005 South-Western. All rights reserved. EXHIBIT 15-1

The 4I Framework Organizational learning processes Intuiting Interpreting Integrating Institutionalizing Organizational learning levels Individual Level Group Level Organizational Level Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization Double-loop learning Action learning System thinking Shared vision The challenging of mental models Team learning Personal mastery of the job High impact learning Translation of new knowledge into new ways of behaving Systematic investigation and problem solving Experimentation Learning from other organizations Healthy disrespect for the status quo Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization Double-loop learning Confronting the validity of the goal or the values implicit in a situation by questioning, based on feedback, the core premise of the situation. Action learning Acquiring skills while working in teams on real problems that are reusable at later stages in resolving the problem. L = P + Q (learning is comprised of programmed knowledge plus questioning skills) Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) Systems thinking Developing a point of view of the organization as a system that affects and is affected by the external environment. Shared vision Developing a common purpose and commitment for the organization to keep learning. Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) The challenge of mental models Overcoming powerful assumptions and mental models that prevent people from working together can open up a world of opportunities. Team learning Engaging in collective problem solving by sharing information and opinions with coworkers. Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) Personal mastery of the job Developing the individual expertise necessary to master the demands of the job. Translation of new knowledge into new ways of behaving Using knowledge to change behavior through learning. Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) Systematic investigation and problem solving Instigating the widespread use of the scientific method to investigate and solve problems. Experimentation Developing the risk-taking, entrepreneurial attitude to seek out new opportunities through experiments in improving organizational performance. Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) Learning from other organizations Studying other competitors to acquire insights to be used as benchmarks for improving the effectiveness and efficiency of the organization. Healthy disrespect for the status quo Challenging whatever exists (e.g., work processes) and seeing if anything can be improved upon. Copyright © 2005 South-Western. All rights reserved.

Building Blocks of A Learning Organization (cont’d) High impact learning Taking steps to increase the significance of high impact learning in moving the firm forward and preventing potential problems by: Building a commitment to a learning capability among members of the organization. Generating ideas with impact by developing deliberate approaches to acquiring knowledge. Using cross-functional team to disseminate ideas with impact throughout the organization. Copyright © 2005 South-Western. All rights reserved.

Knowledge Management Knowledge Management (KM) A systematic approach to documenting, applying, and transferring the know-how and experience of employees. Knowledge is managed more effectively in a learning organization. Information is systematically shared to achieve goals. Intellectual capital is a resource for competitive advantage. Copyright © 2005 South-Western. All rights reserved.

Knowledge Management (cont’d) Organizational conditions favoring KM Being a learning organization. Having an organizational culture that emphasized sharing information through a incentive reward system for contributing to the organizational knowledge base. Providing top-management leadership for the KM effort. Demonstrating the value of KM to encourage commitment. Copyright © 2005 South-Western. All rights reserved.

KM Strategies and Techniques Hire the right persons Employ people who are good at learning and teaching; who are intelligent, can accumulate knowledge, and are intellectually curious. Create knowledge Use intelligence, creativity, and innovation to create knowledge leading to new products or services. Competitive knowledge management Develop mechanisms that allow knowledge and expertise (competitive intelligence) of competitors to be tracked. Copyright © 2005 South-Western. All rights reserved.

KM Strategies and Techniques (cont’d) Codification versus personalizing knowledge Codification: Companies with standardized products and services store information in way that it can be readily assessed and repeatedly used. Personalization: Companies with unique products and services share information through interpersonal contacts. The choice for codification or personalization of knowledge is largely determined by the products or services the company produces. Copyright © 2005 South-Western. All rights reserved.

KM Strategies and Techniques (cont’d) Appointing a Chief Knowledge Officer Duties of a Chief Knowledge Officer Arranging conferences where workers share information. Assimilating databases of company knowledge Teaching people how to learn at a deeper level Getting people to reflect on their experiences and profit from their mistakes Selling people on the idea that brainpower is the company’s true source of competitive advantage Copyright © 2005 South-Western. All rights reserved.

KM Strategies and Techniques (cont’d) Deliver knowledge just in time Providing specialized workers with specialized information that enhances the effectiveness of their work, just at the point at which they could use the information. Closing the gap between knowing and doing Do not allow stored knowledge to go unused, convert knowledge to action. Build a culture of action Copyright © 2005 South-Western. All rights reserved.

Effective Knowledge Management Focus on system performance rather than on narrow technical outcomes. Follow systematic work and decision processes. Share knowledge by letting others know about your ideas. Try new approaches. Copyright © 2005 South-Western. All rights reserved.

Methods for Sharing Information Create an in-house Yellow Pages. Install an intranet communication system. Provide personalized explanations of success factors. Foster dialogue among organization members. Create shared physical facilities and informal learning situations to promote information sharing. Copyright © 2005 South-Western. All rights reserved.