The Learning Organisation

I cannot believe that I have not previously compared two nearly 20 year old organisational models: those of efficient performance and the learning organisation (Daft, 2007). Why should we think about this? Because organisations designed for efficient performance are different to those designed for continuous learning, and we can see how by looking at Senge's five elements of learning organisations:

In a previous post (here), I mentioned Senge’s five elements of learning organisations: those of systems thinking, personal mastery, mental models, a shared vision, and team learning (1990).

The efficient performance organisation is based on a hard, rational model, characterised by a vertical structure, formalised systems, routine tasks, competitive strategy, and a rigid culture (Daft, 2007); whereas the learning organisation emerges from a soft, intuitive perspective of organisations. Structures are more horizontal and employees are empowered to act independently and creatively. Strategy emerges from collaborative links within and among organisations, and the culture encourages experimentation and adaptability (Daft, 2007; Semler, 2015).

When environments are stable, leaders can effectively use rational management to maintain organisational control and stability. But because we live in a globalised environment where change is expected, designing organisations strictly for efficient performance is generally not effective (Daft, 2007). Consider the crises experienced by South America through the latter part of the 20th century, and the founder "learning organisation" of Semco (read more here) which weathered some pretty significant financial, governmental, and production storms. And survived. They learned to be a learning organisation by jettisoning all that weighed them down. They focused on what would keep them afloat, and largely, that was flexibility (Semler, 1993).

Knowledge, information, analysis and insight are probably more important than production machinery. Forward thinking firms are being reconfigured as learning organisations, where all staff are problem-solvers. The learning organisation is skilled in acquiring, transferring, and building knowledge that enables the organisation to continuously experiment, improve, and increase its capability. The learning organisation is based on equality, shared information, little hierarchy, and a shared culture that encourages adaptability and enables the organisation to seize opportunities and handle crises (Daft, 2007; Semler, 2015).

Many organisations become victims of their own success, clinging to outdated values and behaviours because of rigid cultures that do not encourage adaptability and change. But a learning organisation has a strong, adaptive culture which includes the following values (Daft, 2007; Semler, 2015):

• The whole is more important than the part, and boundaries between parts are minimized. People are aware of the whole system, how everything fits together, and the relationships among various organisational parts
• Everyone considers how their actions affect other elements of the organisation
• Equality is a primary value. The culture of a learning organisation creates a sense of community, compassion, and caring for one another
• Each person is valued, and the organisation becomes a place for creating a web of relationships that allow people to develop their full potential
• The culture encourages change, risk-taking, and improvement. A basic value is to question the status quo, the current way of doing things
• Constant questioning of assumptions opens the gates to creativity and improvement.

It is not an easy organisation to work in. We have to give up trying to control the process, be flexible, and fluid. That takes a certain kind of person.

But the rewards are great.

Sam

References:

Daft, R (2007). The Leadership Experience (4th ed.). Cengage Learning.

Semler, R. (1993). Maverick!: The Success Story Behind the World's Most Unusual Workplace. Warner Books.

Semler, R. (2015). TEDx Rio de Janeiro: Radical wisdom for a company, a school, a life [video]. YouTube. https://youtu.be/k4vzhweOefs

Senge, P. (1990). The Fifth Discipline: The art and practice of the learning organization. Currency Doubleday.