1. Building a Learning OrganisationGroup Members:Name of the StudentRoll NoNishad BanodkarP1006Kinnar MajithiaP1026Charusheela Khandale P1024

2. Learning OrganisationGravin Defines the learning organisation as follows:Learning organisation is skilled at five main activities such as1. Systematic Problem Solving2. Experimentation with new approaches3. Learning from past experiences4. Learning from best practices from others5. Transferring knowledge quickly and efficiently3 Ms of framework for Learning organisation: 1. Meaning 2. Management 3. MeasurementNo learning organisation is built overnight. Success comes from carefully cultivatedattitudes, commitments, management processes that accrue slowly and steadily. 3. Role of learning for improvementIts not possible for any organisation to improve without learning first. Its a first stepin order to produce large result set for the desired output.Continuous improvement requires a commitment to learning is the basic truth ofimprovement.Basic functionality of organisation involves1. Solving a problem2. Introducing a product3. Reengineering a processThese all processes require a new way of learning, seeing the world with a new lightand acting accordingly.In absences of above, generally companies are found to repeat the old practices.Thus the change that is proposed remains cosmetic and improvement thus becomefortuitous or short lived. 4. Analysis of 3 Ms Scholars are always found talking about various things regarding learning. Their discussion of learning organisations have often been reverential and utopian, filled with near mystical terminologies. e.g. Peter Senge with his book The fifth Discipline describes, where people continually expand their capacity to create the result the truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free and where people are continually learning how to learn together. Senge thus suggested use of 5 component technologies:1. Systems Thinking2. Personal Mastery3. Mental models4. Shared Vision5. Team Learning According to him, these 5 components play very important part in learning organisations, pursuing the goal with these 5 polished components takes the organisation to the new heights of achievements. 5. Analysis of 3 MsContinued...Nonaka characterised knowledge creating companies as place where Inventing newknowledge is not a specialised activityit is a way of behaving, indeed, a way ofbeing, in which everyone is a knowledge worker.All these examples are very idyllic and desirable. No doubt. But at the same time,they do not provide a framework for action. The recommendations are far tooabstract and too many questions remained unanswered.e.g. managers cant answer the question like, when exactly company has becomelearning organisation? Or what concrete behavioural changes required inorganisation? Or what policies must be there in place? Etc.Most discussions of learning organisations finesse these issues. Their focus is highphilosophy and grand themes. Sweeping metaphors rather than the gritty details ofpractice, three critical issues are left unresolved, yet each is essential for effectiveimplementation. 6. Analysis of 3 MsContinued...First is the question of Meaning. We need a plausible, well-grounded definition oflearning oraganisation; it must be actionable and easy to apply.Second is the question of Management. We need clearer guidelines for practice,filled with operational advice rather than high aspirations.Third is the question of Measurement. We need better tools for assessing anorganisations rate and level of learning to ensure that gains have in fact been made.Once these 3 Ms are addressed, managers will have a firmer foundation forlaunching learning organisations. Without this ground work, progress is unlikely,and for the simplest of reasons. For learning to become a meaningful corporate goal,it must be first understood. 7. What is a Learning Organisation?Surprisingly, a clear definition of learning organisation has proved to be elusive overthe years.Organisational theorists have studied learning for a long time; the accompanyingquotations suggest that there is still considerable disagreement.Most scholar view organisational learning as a process that unfolds over time andlink it knowledge acquisition and improved performance.Some, for example, believe that behavioural change is required for learning; otherson other hand insists that new ways of thinking are enough, nothing extra is requiresto do.Some cite information processing as the mechanism through which learning takesplace; others proposed shared insights, organisational routines, and even sometimesmemory.And some think that organisational learning is common, while others believed thatflawed, self-serving interpretations are the norms.Due to all above conflicts in producing a single unique view on learningorganisation, scholars have first considered a basic definition. 8. What is a Learning Organisation? Continued Definition: A learning organisation is an organisation skilled at creating, acquiring and transferring knowledge and at modifying its behaviour to reflect new knowledge and insights. This begins with simple truth: New ideas are essential if learning is to take place. Some times they are created through flashes of insight or creativity; at other times they arrive from outside the organisation or are communicated by knowledge insiders. Whatever be the sources, these ideas are the trigger for organisational improvement. But they can not themselves create a learning organisation. It has been found that all institutes, companies have been effective in creating new knowledge or acquiring the same, but all of them have one common thing, i.e. they are notable less successful in applying the knowledge to their own activities. 9. What is a Learning Organisation? Continued Total quantity management, for example, is now taught at many business schools, yet the number using it to guide their own decision making is very small. Organisational consultant advise clients on social dynamics and small group behaviour but are notorious for their own infighting and factionalism. And GM with a few exceptions (like saturn and Nummy), has had little success in revamping its manufacturing practices, even though its managers are experts on lean manufacturing, JIT production and requirement for improved quality of work life. Organisations that do pass the definitional test- Honda, Corning and general Electric come quickly to mind-have by contrast become adept at translating ne w knowledge into new ways of behaving. These companies actively manage the learning process to ensure that it occurs by design rather than by chance. Distinctive policies and practices are responsible for their success, they form the building blocks of learning organisation. 10. Building BlocksLearning Organisations are skilled at five main activities: 1. Systematic Problem Solving 2. Experimentation with new approaches 3. Learning from past experiences 4. Learning from best practices from others 5. Transferring knowledge quickly and efficientlyEach of these is accompanied by a distinctive mind-set, tool kit, pattern behaviour.Many companies practice these activities as learning organisations.But only few of them are consistently successful because they rely largely onhappenstances and isolated examples.Systems and processes that support these activities are created and integrated theminto a whole system to support daily operations. 11. Systematic Problem SolvingThis is the first activity. It hugely relies on philosophy and methods of qualitymovement. This idea is broken down into various parts which in turn make this ideaa huge success.1. Relying on scientific method rather than guess work for diagnosing problems. Ithelps in understanding the root cause and thus improves efficiency of problemsolving. (what Deming calls the plan, do, check, act cycle is applicable over here).2. Insisting on data rather than assumptions. Having a concrete data helps to analysethe situation in better way. It also helps in decision making considerably as decisionsmade based on factual data are always far efficient and accurate than those whichare made based on assumptions (Fact based management).3. Use of simple statistical tools like histogram, pareto charts, regression,correlation, cause and effect diagrams etc. 12. Systematic Problem on problem solving techniques using standard dayMost training programs focuses Solving continued to day life examples which helps to understand the concept in much simpler way. These tools are very effective and also relatively straight forward and thus are easily communicated. Accuracy and precision are essential for learning. Employees must therefore become more disciplined in their thinking and more attentive to details. 5 Wh type questions are always useful in this kind of approach. They are Who, What, Why, Where, When and How Thus answers to all these questions effectively produce good results for this technique. 13. Systematic Problem Solving -made use of problem solvingLets analyse famous Xerox machine case which Xerox Machineprocess. Step by step approach Step to be takenIdentify & select problem Question to be answered What do we want to change? Expansion/divergenceLots of problems for consideration Contraction/Convergence One problem statement. One Desired state agreed upon Whats next?Identify the gap. 14. Systematic Problem Solving - Xerox Machinecontinued2nd step in Xerox machine progress is as follows: Step by step approach Step to be taken Analyse Problem Question to be answeredWhats preventing us fromreaching the Desired State? Expansion/divergence Lots of potential causesidentified. Contraction/ConvergenceKey causes to be identified andverified Whats next? Key causes documented andranked. 15. Systematic Problem Solving - Xerox Machinecontinued3rd step in Xerox machine progress deals with solution generation. This is mostimportant step as solutions generated in this step will only be considered whilemaking selection for the final solution:Step by step approachStep to be taken Generate Potential SolutionQuestion to be answeredHow could we make the changes?Expansion/divergence Lots of ideas on how to solve the problem.Contraction/ConvergencePotential solutions clarified.Whats next? Solution List 16. Systematic Problem Solving - Xerox Machinecontinued4th step: selecting the most appropriate solution amongst the various solutions:Step by step approachStep to be takenSelect and plan the solutionQuestion to be answered What is the best way to do it?Expansion/divergenceLots of criteria for evaluatingpotential solution.Lots of ideas on how toimplement and evaluate theselected solution.Contraction/Convergence Criteria to use for evaluatingthe solutions is agreed up on.Implement and evaluate plansagreed upon.Whats next?Monitor the change.Evaluate solution effectiveness 17. Systematic Problem Solving - Xerox Machinecontinued5th step: Implementing the solution selected:Step by step approachStep to be takenImplement the solutionQuestion to be answered Are we following the plan?Expansion/divergenceContraction/Convergence Implementation of agreed-oncontingency plan.Whats next?Solution in place 18. Systematic Problem Solving - Xerox Machinecontinued6th step: Evaluate the Solution:Step by step approachStep to be taken Evaluate the solution.Question to be answeredHow well did it work?Expansion/divergenceContraction/ConvergenceEffectiveness of solution agreed upon. Continuing problems if any.Whats next? Verification if problem is solved or not. Agreement to address continuing problems. 19. ExperimentationThis activity involves the systematic searching for and testing of new knowledge.Use of scientific method is essential. It takes 2 main forms: 1. On going programs 2. One-of-a-kind demonstration projectsOngoing programs are series of experiments designed to produce incremental gainof knowledge. They are mainstay of most continuous improvement programs andare especially common to the shop floor. For example, corning, with diverse rawmaterial and new formulation to increase the yield and provide better grades ofglass.Successful ongoing programs share various common characters: 1. They work hard to ensure steady flow of several ideas 2. Requires incentive system that favors risk taking. 3. Ongoing programs need managers and employees who are skilled and welltrained to perform the execution of the task. 20. Experimentation ContinuedDemonstration ProjectsThese are usually larger and more complex than ongoing programs. These includeholistic, systematic, system wide changes introduced on single site and oftenundertaken with the goal of developing new organisational capabilities.These projects share number of distinctive characteristics:1. These are usually first project to adopt changes and implement the same for whichorganisation hoping to see new effects and implement the changes in new system.Involve Learning by doing considerably.2. Establish policy guidelines and decision rules for later projects of theorganisation.3. Often encounter severe tests of commitment from employees who wish to seewhether the changed rules have been implemented.4. They are normally developed by several strong multi-functioning teams reportingdirectly to the senior management.5. They tend to have only limited impact on the rest of the organisational behaviourif they are not accomplished by explicit strategies for transferring learning. 21. 3. Learning from Past Experience This is the 3rd of the five main activities at which Learning Organizations are skilled. Companies must review their successes and failures , assess them systematically,and record the lessons in a form that employees find open and accessible. One expert has called this process the Santayana Review, citing the famousphilosopher George Santayana, who coined the phrase Those who cannotremember the past are condemned to repeat it. Regrettably, too many managers today are indifferent, even hostile, to the past, andby failing to reflect on it, they let valuable knowledge escape. 22. IBM 360 Computer Series A study of more than 150 new products concluded that the knowledge gained fromfailures is often instrumental in achieving subsequent success. This can be simplified by summarizing that Failure is the Ultimate Teacher. For example: IBMs 360 computer series which was one of the most popular andprofitable ones was based on the technology of the failed Stretch computer thatpreceded it. In this case, as in many others, learning occurred by chance rather thanby careful planning. 23. BOEING However, a few companies have established processes that need their managers toperiodically think about the past and learn from their mistakes. For example: Boeing 737 and 747 Both planes were introduced with much fanfareand with serious problems. Project Homework, a high-level employee group, wascommissioned by senior managers to ensure that the problems were not repeated. Project Homework compared the development processes of the 737 and 747 withthose of the 707 and 727 which were the companys two most profitable planes. After working for 3 years, they produced hundreds of recommendations and an inch-thick booklet; several members of the team were then transferred to the 757 and 767start-ups, and guided by experience they produced the most successful, error-freelaunches in Boeings history. 24. XEROX Similar retrospective approach adopted by other companies like Xerox, which, likeBoeing, studied its product development process, examining 3 troubled products inan effort to understand Why the companys new business initiatives failed sooften? Senior management invited ADL(Arthur D. Little consulting company whichfocused on its past successes) consultants from around the world to a 2-dayjamboree, featuring booths and presentations documenting a wide range of thecompanys most successful practices, publications and techniques. 25. British Petroleum BP established a post-project appraisal unit to review major investment projects,write-up case studies and derive lessons for planners that were incorporated intorevisions of the companys planning guidelines. For this, a 5-person unit reported to the board of directors and reviewed 6 projectsannually. The bulk of the time was spent in the field interviewing managers and suchtype of review is conducted regularly at project level. These approaches highlight the recognition of the companies towards productive failure as contrasted with unproductive success. Productive Failure Leads to insight, understanding, and thus, an addition to thecommonly held wisdom of the organization. Unproductive Success Occurs when something goes well but nobody knows why. 26. Case-studies and post-project reviews can be performed with little cost other thanmanagers time. Companies can take the help of faculty and students at the local colleges or universities as they bring fresh perspective and view internships and case studies as opportunities to gain experience and learning. Computerized Data Banks Established by a few companies to speed up learningprocess. Paul revere Life Insurance Management requires all problem-solving teams tocomplete short registration forms describing their proposed projects if they hope toqualify for the companys award program. The company then enters these forms into its computer system and can immediately retrieve a listing of other groups of people who have worked or are working on the topic, along with a contact person. They can then call up the person with the required relevant experience. 27. 4. Learning from Others Apart from the learning through reflection and self-analysis, sometimes, the mostpowerful insights come from looking outside ones immediate environment to gain anew perspective. It is also referred to as SIS Stealing Ideas Shamefully. Even companies incompletely different businesses can be fertile sources of ideas and catalysts forcreative thinking. 28. Benchmarking Benchmarking helps in understanding practices rather than observing results. It is a disciplined process which: Begins with a thorough search to identify best-practice organizations Continues with careful study of ones own practices and performance Progresses through systematic site visits and interviews Concludes with an analysis of results, development of recommendations, and implementation It may be time-consuming, but it may not be terribly expensive. 29. Customers It is yet another fertile source of ideas; conversations with customers invariablystimulate learning. Customers can provide: Up-to-date product information Competitive comparisons Insights into changing preferences Immediate feedbacks about service and patterns of use. Companies need these insights at all levels, from executive suite to shop floor. At Motorola, members of Operating and Policy committee, including the CEO, meet personally, on a regular basis with the customers. 30. Customers (contd..) Customers cant always articulate their needs or remember the most recent problemsthey have had with a product or service. For that, the managers must observe themin action. Example: Xerox employs a number of anthropologists at its Palo Alto ResearchCenter to observe users of new document products in their offices. Digital Equipment has developed contextual inquiry an interactive process thatis used by software engineers to observe users of new technologies as they go abouttheir work. Milliken created first-delivery teams that accompany the first shipment of allproducts; team members follow the product through the customers productionprocess to see how it is used and then develop ideas for further improvement. Learning can occur only in a receptive environment. Learning Organizationscultivate the art of open attentive listening. 31. 5. Transferring Knowledge Ideas carry maximum impact when they are shared broadly rather than being heldin a few hands. Knowledge transfer can take place through mechanisms like:o Written, Oral and Visual reportso Site visits and tourso Personnel rotation programso Education and training programso Standardization programs 32. Reports Purposes served: o Summarize findings o Provide checklists of dos and donts o Describe important processes and events Reports cover a multitude of topics from: o Benchmarking studies o Accounting conventions o Newly discovered marketing techniques Now, written reports are often supplemented by Videotapes which offer greaterimmediacy and fidelity. 33. Tours Tours are a popular means of knowledge transfer, especially for large,multidivisional organizations with multiple sites. To introduce to its managers to the distinctive manufacturing practices of NewUnited Motor Manufacturing Inc. (NUMMI), its joint venture with Toyota,General Motors developed a series of specialized tours; some were geared to upperand middle managers, while the others were aimed at lower ranks. Each tour described the policies, practices and systems that were most relevant tothat level of management. Reports and Tours are cumbersome ways of knowledge transfer. The gritty detailsthat lie behind complex management concepts are difficult to communicatesecondhand. 34. Personnel Rotation Program In many organizations, expertise is held locally: in a skilled computer technician, ora savvy global brand manager or maybe in a division head. Those in daily contactwith these experts benefit enormously from their skills. Their field of influence is narrow and transferring them to different parts of theorganization helps in sharing their knowledge. Transfers maybe across differentlevels. Example: A supervisor experienced in just-in-time production might move toanother factory to apply the methods there. A successful division manager mightmove to a lagging division to invigorate it with already proven ideas. 35. PPG in Chehalis This instance from PPG demonstrates Line to Staff transfer. PPG constructed a new float-glass plant in Chehalis, Washington and employedradically new technology as well as innovations in HR management. All workers were organized into small, self-managing teams with responsibility forwork-assignments, scheduling problem solving and improvement, and peer review. After several years running the factory, the plant manager was promoted to Directorof HR for the entire glass group. Drawing on his experiences at Chehalis, hedeveloped a training program geared toward first-level supervisors that taught thebehaviors needed to manage employees in a participative, self-managingenvironment. This example suggests that education and training programs are powerful tools fortransferring knowledge but for maximum effectiveness they must be linkedexplicitly to implementation. 36. Xerox and GTE Xerox exemplifies the implementation of learning. When Xerox introducedproblem-solving techniques to its employees in the 1980s, everyone from top tobottom was taught in small departmental or divisional groups led by their immediatesuperior. After an introduction to concepts and techniques, each group applied what theylearned to a real-life work problem. GTEs Quality: The Competitive Edge program: At the beginning of the 3-daycourse, each team received a request from company officer to prepare a completequality plan for their unit, based on the course concepts, within 60 days. Discussion periods of 2 to 3 hours were set aside during the program so that teamscould begin working their plans. When the reports submitted by the employees wereimplemented, GTE produced dramatic quality improvement. 37. AT&Ts CQA CQA Chairmans Quality Award, is an internal quality competition with a twist.The twist is that the awards are given not only for absolute performance but also forimprovements in scoring from the previous year. On 1000-points, Gold, Silver and Bronze Improvement Awards are given to unitsthat have improved their scores 200,150 and 100 points respectively, thus providingthe incentive for change. An accompanying Pockets of Excellence program simplifies knowledge transfer. Every year, it identifies every unit within the company that has contributed at least 60% of the possible points in each award category and then publicizes the names of these units using written reports and e-mail. 38. Measuringmaxim If you cant measure it, you cant manage it. A well-known Learning Traditionally, the solution has been Learning Curves and Manufacturing ProgressFunctions. Both concepts date back to the discovery, during the 1920s and 1930s, that the cost ofair-frame manufacturing fell predictably with increases in cumulative volume. Theseincreases were viewed as proxies for greater manufacturing knowledge, and mostearly studies examined their impact on the costs of direct labor. Later studies expanded the focus, looking at total manufacturing costs and the impactof experience in other industries including shipbuilding, oil refining and consumerelectronics. Typically, learning rates were in the 80% to 85% range (meaning that with a doublingof cumulative production, costs fell to 80% - 85% of their previous level), althoughthere was wide variation. 39. BCG on the logic of Learning Curves, firms like Boston Consulting Group argued Drawing Experience Curves that industries as a whole faced Experience Curves, costs and prices that fell by predictable amounts as industries grew and their total production increased. With this observation, consultants suggested, came an iron law of competition. To enjoy the benefits of experience, companies would have to rapidly increase theirproduction ahead of competitors to lower prices and gain market share. 40. Learningcurves areExperience Curves aerospace, defense, and Both these and still widely used, especially in theelectronics industries. BOEING has established learning curves for every workstation in its assembly plant;they assist in monitoring productivity, determining work flows and staffing levels, andsetting prices and profit margins on new airplanes. Experience curves are common in semiconductors and consumer electronics, wherethey are used to forecast industry cost and prices. 41. A For companies hoping to become Learning Organizations, these measures are few Concerns.. incomplete. They focus on only a single measure of output (cost or price) and ignore learning thataffects other competitive variables like quality, delivery or new product introductions. They suggest only one possible learning driver (total production volumes) and ignoreboth the possibility of learning in mature industries, where output is flat, and thepossibility that learning might be driven by other sources, such as new technology orthe challenge posed by competing products. Perhaps, most important they tell us little about the sources of learning or the levers ofchange. 42. Half-Life Curve to the discussed concerns, was developed by Analog Half-Life Curve, in response Devices, a leading semiconductor manufacturer, as a way of comparing internal improvement rates. A half-life curve measures the time it takes to achieve a 50% improvement in aspecified performance measure. When represented graphically, the performance measure (defect-rates, on-timedelivery, time to market) is plotted on the vertical axis and the time scale (days,months, years) is plotted on the horizontal axis. Steeper slopes then represent faster learning. 43. Half-Life Curve (contd..)are graphed for 7 divisions. Here monthly data on consumer service Division C is clear winner: even though it started a high proportion of late deliveries,its rapid learning rate led eventually to the best absolute performance. Divisions D, E, G have been far less successful. 44. Half-Lifestraightforward Companies, divisions or departments that take less The logic is Curve (contd..) time to improve must be learning faster than their peers, which will translate into superior performance in the long run. The target of 50% is a measure of convenience; it was derived empirically fromstudies of successful improvement processes at a wide range of companies. Unlike learning and experience curves, they work on any output measure, notconfined to cost or price and are easy to operationalize, they provide a simplemeasuring stick and allow ready comparison among groups. 45. Half-Life Curve - Weaknesses They focus only on results. Some types of knowledge take years to digest, with a few visible changes inperformance for longer periods. Creating a total quality culture, for instance, ordeveloping new approaches to product development are difficult systemic changes. Because of their long gestation periods, half-life curves or any other measuresfocused solely on results are unlikely to capture any short-run learning that hasoccurred. A more comprehensive framework is needed to track progress. 46. Organizational Learning Stages Organizational learning can be traced through 3 overlapping stages:1. Cognitive Members of the organization are exposed to new ideas, expand their knowledge, and begin to think differently.2. Behavioral Employees begin to internalize new insights and alter their behavior.3. Performance Improvement With changes in behavior leading to measurable improvements in results: superior quality, better delivery, increased market share, or tangible gains. Because cognitive and behavioral changes typically precede improvements in performance, a complete learning audit must include all 3. 47. Surveys, questionnaires and interviews are useful for this purpose.Organizational Learning Stages (contd..) At cognitive level, they would focus on attitudes and depth of understanding. At PPG, a team of HR experts periodically audits every manufacturing plant, including extensive interviews with shop-floor employees to ensure that concepts are well-understood. To assess Behavioral changes, surveys and questionnaires must be supplemented with direct observation.Eg: Dominos Pizza uses mystery shoppers to assess managerscommitment to customer service at its individual stores. Other companies invite outside consultants to visit, attend meetings, observe employees in action, and report what they have learned. A comprehensive learning audit also measures performance. 48. First Steps to becoming Learning Organization Learning organizations are not built overnight. Most successful examples are the products of carefully cultivated attitudes,commitments, and managerial processes that have accrued slowly and steadily overtime. To become learning organization: Foster an environment that is conducive tolearning. There must be time for reflection and analysis, to think of strategies andinvent new products. Training in brainstorming, problem solving, evaluating experiments and other corelearning skills are therefore essential. 49. Steps (contd..) is to open up boundaries and simulate the exchange of ideas. Another powerful lever General Electric CEO Jack Welch considers this such a powerful stimulant ofchange that he has made boundarylessness a cornerstone of the companys strategyfor the 1990s. Managers can create Learning Forums which foster learning by requiring employeesto wrestle with new knowledge and consider its implications. Coupled with a better understanding of the three Ms, the meaning, managementand measurement of learning, this shift provides a solid foundation for buildinglearning organizations. 50. Definitionslearning means the process of improving actions though better Organizational of Organizational Learning knowledge and understanding. An entity learns if, through its processing of information, the range of its potentialbehaviors is changed. Organizations are seen as encoding inferences from history into routines that guidebehavior. Organizational learning is a process of detecting and correcting error. Organizational learning occurs through shared insights, knowledge and mental models and builds on past knowledge and experience that is, on memory. 51. Stages of prototypes (what is a good product?)1. Recognizing Knowledge2. Recognizing attributes within prototypes (ability to define some conditions under which process gives good output).3. Discriminating among attributes (which attributes are important? Experts may differ about relevance of patterns; new operators are often trained through apprenticeships).4. Measuring attributes (some key attributes are measured; measures may be qualitative and relative).5. Locally controlling attributes (repeatable performance; process designed by expert, but technicians can perform it). 52. Stages of Knowledge (contd..)5. Locally controlling attributes (repeatable performance; process designed by expert,but technicians can perform it).6. Recognizing and discriminating between contingencies (production process can be mechanized and monitored manually).7. Controlling contingencies (process can be automated).8. Understanding procedures and controlling contingencies (process is compeletely understood). 53. THANK YOU