1. Organizational Learning and Influence of emerging business realities
Ashima Wadhwa

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

3. 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

4. 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

5. Organizational Learning

6. 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

7. 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

8. 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

9. 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

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

11. 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

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

13. Managing Organizational Innovation
The Innovation Model - Overview
Managing Organizational Innovation

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. Thank You !!!