1. Designing and Leading a Learning Organization15
Designing and Leading a Learning Organization

2. 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.

3. 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

4. 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

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

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

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

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

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

10. 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

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

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

13. 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

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

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

16. 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

17. 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

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

19. 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

20. 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

21. 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

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