1. Chapter Fourteen The Learning Organization and Knowledge Management

2. Copyright © 2007 by Nelson, a division of Thomson Canada Limited2 Objectives After reading and studying this chapter, you should be able to: 1. Describe the 4I framework of a learning organization. 2. Identify the building blocks, or key characteristics, of a learning organization. 3. Recognize organizational conditions favouring knowledge management.

3. Copyright © 2007 by Nelson, a division of Thomson Canada Limited3 Objectives (cont.) 4. Pinpoint strategies and techniques for knowledge management. 5. Specify methods for sharing information within an organization.

4. Copyright © 2007 by Nelson, a division of Thomson Canada Limited4 The Learning Organization An organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying behaviour to reflect new knowledge and insights. An organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying behaviour to reflect new knowledge and insights.

5. Copyright © 2007 by Nelson, a division of Thomson Canada Limited5 Some Signs of a Learning Organization Mistakes treated as valuable learning experiences, not repeated Mistakes treated as valuable learning experiences, not repeated Useful ideas garnered from customers & employees Useful ideas garnered from customers & employees Many employees are aware of firm’s vision & believe in it Many employees are aware of firm’s vision & believe in it Opportunities for employees to get together & share information Opportunities for employees to get together & share information

6. Copyright © 2007 by Nelson, a division of Thomson Canada Limited6 The 4I Framework of Organizational Learning How a firm makes systematic use of information, converting an individual’s insight into organizational practice through the interaction with others How a firm makes systematic use of information, converting an individual’s insight into organizational practice through the interaction with others Assumes open system; organizational learning encompasses entire enterprise Assumes open system; organizational learning encompasses entire enterprise

7. Copyright © 2007 by Nelson, a division of Thomson Canada Limited7 The 4I Framework of Organizational Learning Four processes: Four processes: Intuiting (individual level) – preconscious recognition of pattern or opportunity Intuiting (individual level) – preconscious recognition of pattern or opportunity Interpreting (individual level) – explaining insight to self & others Interpreting (individual level) – explaining insight to self & others Integrating (group level) – discussion, joint action Integrating (group level) – discussion, joint action Institutionalization (organizational level) – routinized actions Institutionalization (organizational level) – routinized actions

8. Copyright © 2007 by Nelson, a division of Thomson Canada Limited8 Building Blocks of A Learning Organization Double-loop learning Double-loop learning Action learning Action learning Systems thinking Systems thinking Shared vision Shared vision The challenging of mental models The challenging of mental models Team learning Team learning Personal mastery of the job Personal mastery of the job High impact learning High impact learning Translation of new knowledge into new ways of behaving Translation of new knowledge into new ways of behaving Systematic investigation and problem solving Systematic investigation and problem solving Experimentation Experimentation Learning from other organizations Learning from other organizations Healthy disrespect for the status quo Healthy disrespect for the status quo

9. Copyright © 2007 by Nelson, a division of Thomson Canada Limited9 Building Blocks of A Learning Organization Double-Loop Learning Double-Loop Learning occurs when person uses feedback to confront the validity of the goal, the values implicit in the situation, the basic premise occurs when person uses feedback to confront the validity of the goal, the values implicit in the situation, the basic premise Action Learning Action Learning working in teams on real problems to acquire skills that are reusable at later stages working in teams on real problems to acquire skills that are reusable at later stages L = P + Q (learning is comprised of programmed knowledge plus questioning skills) L = P + Q (learning is comprised of programmed knowledge plus questioning skills)

10. Copyright © 2007 by Nelson, a division of Thomson Canada Limited10 Building Blocks of A Learning Organization Systems thinking Systems thinking Developing a point of view of the organization as a system that affects and is affected by the external environment, and whose parts affect each other Developing a point of view of the organization as a system that affects and is affected by the external environment, and whose parts affect each other Shared vision Shared vision Developing a common purpose and commitment for the organization to keep learning. Developing a common purpose and commitment for the organization to keep learning.

11. Copyright © 2007 by Nelson, a division of Thomson Canada Limited11 Building Blocks of A Learning Organization Challenging of Mental Models Challenging of Mental Models Overcoming powerful assumptions and mental models that prevent people from working together can open up a world of opportunities. Overcoming powerful assumptions and mental models that prevent people from working together can open up a world of opportunities. Team Learning Team Learning Engaging in collective problem solving by sharing information and opinions with coworkers; use group problem solving wherever possible Engaging in collective problem solving by sharing information and opinions with coworkers; use group problem solving wherever possible

12. Copyright © 2007 by Nelson, a division of Thomson Canada Limited12 Building Blocks of A Learning Organization Personal Mastery of the Job Personal Mastery of the Job Developing the individual expertise necessary to master the demands of the job. Developing the individual expertise necessary to master the demands of the job. Translation of New Knowledge into Ways of Behaving Translation of New Knowledge into Ways of Behaving Applying knowledge to change behaviour Applying knowledge to change behaviour

13. Copyright © 2007 by Nelson, a division of Thomson Canada Limited13 Building Blocks of A Learning Organization Systematic Investigation & Problem Solving Systematic Investigation & Problem Solving Systematically gather information to make informed decision, pay attention to details Systematically gather information to make informed decision, pay attention to details Experimentation Experimentation Developing the risk-taking, entrepreneurial attitude to seek out new opportunities through experiments in improving organizational performance. Developing the risk-taking, entrepreneurial attitude to seek out new opportunities through experiments in improving organizational performance.

14. Copyright © 2007 by Nelson, a division of Thomson Canada Limited14 Building Blocks of A Learning Organization Learning from Other Organizations Learning from Other Organizations Studying competitors & those in other businesses to acquire insights to be used as benchmarks for improving the effectiveness and efficiency of the organization Studying competitors & those in other businesses to acquire insights to be used as benchmarks for improving the effectiveness and efficiency of the organization Healthy Disrespect for the Status Quo Healthy Disrespect for the Status Quo Challenging whatever exists to see if it can be improved Challenging whatever exists to see if it can be improved

15. Copyright © 2007 by Nelson, a division of Thomson Canada Limited15 Building Blocks of A Learning Organization High-Impact Learning High-Impact Learning Want learning to be significant Want learning to be significant Steps to facilitate high-impact learning: Steps to facilitate high-impact learning: Build managers’ commitment to learning by incorporating learning into mission statements & other strategic documents Build managers’ commitment to learning by incorporating learning into mission statements & other strategic documents Generate ideas with impact by using methods such as suggestion systems that promote the idea of continuously acquiring knowledge Generate ideas with impact by using methods such as suggestion systems that promote the idea of continuously acquiring knowledge Disseminate ideas with impact throughout the organization, such as using cross-functional teams or brown-bag lunch sessions Disseminate ideas with impact throughout the organization, such as using cross-functional teams or brown-bag lunch sessions

16. Copyright © 2007 by Nelson, a division of Thomson Canada Limited16 Knowledge Management (KM) A systematic approach to documenting, applying, and transferring the know-how and experience of employees. A systematic approach to documenting, applying, and transferring the know-how and experience of employees. Makes effective use of intellectual capital, protects it. Makes effective use of intellectual capital, protects it.

17. Copyright © 2007 by Nelson, a division of Thomson Canada Limited17 Knowledge management (cont.) Organizational conditions favoring KM Organizational conditions favoring KM Being a learning organization. Being a learning organization. Having an organizational culture that emphasizes sharing information Having an organizational culture that emphasizes sharing information Providing top-management leadership for the KM effort. Providing top-management leadership for the KM effort. Demonstrating the value of KM to encourage commitment. Demonstrating the value of KM to encourage commitment.

18. Copyright © 2007 by Nelson, a division of Thomson Canada Limited18 KM Strategies and Techniques Hire the right people Hire the right people Employ people who are good at learning and teaching; who are intelligent, can accumulate knowledge, and are intellectually curious. Employ people who are good at learning and teaching; who are intelligent, can accumulate knowledge, and are intellectually curious. Create knowledge Create knowledge Use intelligence, creativity, and innovation to create knowledge leading to new products or services Use intelligence, creativity, and innovation to create knowledge leading to new products or services Competitive knowledge management Competitive knowledge management Develop mechanisms that allow tracking of knowledge and expertise outside the firm (competitive intelligence) Develop mechanisms that allow tracking of knowledge and expertise outside the firm (competitive intelligence)

19. Copyright © 2007 by Nelson, a division of Thomson Canada Limited19 KM Strategies and Techniques Codification versus personalizing knowledge Codification versus personalizing knowledge Codification: Codification: Companies with standardized products and services store information in way that it can be readily assessed and repeatedly used. Companies with standardized products and services store information in way that it can be readily assessed and repeatedly used. Personalization: Personalization: Companies with unique products and services share information through interpersonal contacts. 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. The choice for codification or personalization of knowledge is largely determined by the products or services the company produces.

20. Copyright © 2007 by Nelson, a division of Thomson Canada Limited20 KM Strategies and Techniques (continued) Appoint a Chief Knowledge Officer Appoint a Chief Knowledge Officer In charge of systematically collecting information & connecting people who need information with those who have it In charge of systematically collecting information & connecting people who need information with those who have it Duties of a Chief Knowledge Officer: Duties of a Chief Knowledge Officer: Arranging conferences where workers share information. Arranging conferences where workers share information. Assimilating databases of company knowledge Assimilating databases of company knowledge Teaching people how to learn at a deeper level Teaching people how to learn at a deeper level Getting people to reflect on their experiences and profit from their mistakes 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 Selling people on the idea that brainpower is the company’s true source of competitive advantage

21. Copyright © 2007 by Nelson, a division of Thomson Canada Limited21 KM Strategies and Techniques (continued) Deliver knowledge just in time Deliver knowledge just in time Provide workers with specialized information that enhances the effectiveness of their work, just at the point at which they can use the information. Provide workers with specialized information that enhances the effectiveness of their work, just at the point at which they can use the information. Closing the gap between knowing and doing Closing the gap between knowing and doing Do not allow stored knowledge to go unused, convert knowledge to action. Do not allow stored knowledge to go unused, convert knowledge to action. Build a culture of action Build a culture of action

22. Copyright © 2007 by Nelson, a division of Thomson Canada Limited22 Behaviours Contributing to Effective Knowledge Management Focusing on system performance rather than on narrow technical outcomes. Focusing on system performance rather than on narrow technical outcomes. Following systematic work and decision processes. Following systematic work and decision processes. Sharing knowledge by letting others know about your ideas. Sharing knowledge by letting others know about your ideas. Trying new approaches. Trying new approaches.

23. Copyright © 2007 by Nelson, a division of Thomson Canada Limited23 Methods for Sharing Information In-house Yellow Pages. In-house Yellow Pages. Directory of skills, talents, special knowledge of employees Directory of skills, talents, special knowledge of employees Available internally only Available internally only Intranet communication system. Intranet communication system. Make information available through electronic means such as on-line forums Make information available through electronic means such as on-line forums Personalized explanations of success factors. Personalized explanations of success factors. Teachable point of view Teachable point of view

24. Copyright © 2007 by Nelson, a division of Thomson Canada Limited24 Methods for Sharing Information (continued) Foster dialogue among organization members. Foster dialogue among organization members. Create shared physical facilities and informal learning situations to promote information sharing. Create shared physical facilities and informal learning situations to promote information sharing. E.g., comfortable seating in lunchroom that encourage people to gather & chat E.g., comfortable seating in lunchroom that encourage people to gather & chat