ORGANIZATIONAL LEARNING

1. ORGANIZATIONAL LEARNING Frankfurt FFFM March 2008 - Sept. 2009 – March 2013 Prof. Dr. Irene Martín-Rubio

2. ORGANIZATIONAL LEARNING • LearningOrganization vs. OrganizationalLearning. Definitions, Levels of Learning • Single LoopeLearning vs. DoubleLoopLearning • Activities of OrganizationalLearning • LearntoLearn • Communities of practices • Routines • Trust • Team Management • MBTI Indicator of Personality • Peopleinteractios • Clusters – Open Innovation

3. INTRODUCTION • Nonaka suggested that companies use metaphors to focus thinking, encourage dialogue and make tacit, instinctively understood ideas explicit. Sound idyllic? Absolutely Desirable? Without question. But does it provide a framework for action? Hardly

4. INTRODUCTION • A LEARNING ORGANIZATION IS AN ORGANIZATION SKILLED AT CREATING, ACQUIRING, AND TRANSFERRING KNOWLEDGE, ANT AT MODYFING ITS BEHAVIOUR TO REFLECT NEW KNOWLEDGE AND INSIGHTS. (Garvin, 1993 “Building a Learning Organization”).

5. LEARNING ORGANIZATION • It is a firm that purposefully constructs structures and strategies, to enhance and maximizes Orgnizational Learning. • The concept of a learning organization has become popular since organizations want to be more adaptable to change.

6. ORGANIZATIONAL LEARNING- LEARNING ORGANIZATION • The detection and correction of error (Argyris & Schön, 1978) • The process of improving actions through better knowledge and understanding (Fyol & Lyles, 1985) • The way firms build,supplement, and organize knowledge and routines around their and within their cultures and adapt and develop organizational efficiency by improving the use of the broad skills of their workforces. (Dodgson, 1993) • Learning occurs in an organization “if through its processing of information, the range of its (organization’s) potential behaviors is changed (Huber, 1991)

7. Levels in the LEARNING ORGANIZATION • INDIVIDUAL LEARNING • ORGANIZATIONAL LEARNING (OL) Since the individuals form the bulk of the organization, they must establish the necessary forms and processes to enable organizational learning in order to facilitate change. OL is more than the sum of the parts of individual learning. An organization does not lose out on its learning abilities when members leave the organization.

8. LEARNING SYSTEMS • Organizational learning contributes to organizational memory. • Learning systems, not only influence immediate members, but also future members, due to the accumulation of histories, experiences, norms and stories. • Equally important is the creation of an unlearning organization which essentially means that the organization must forget some of its past.

9. 3 types of ORGANIZATIONAL LEARNING • SINGLE-LOOP LEARNING • DOUBLE-LOOP LEARNING • DEUTERO-LEARNING

10. SINGLE-LOOP LEARNING • This occurs when errors are detected and corrected. • Firms continue with their present policies and goals. • This is the “Lower-level Learning”, “Not-Strategic Learning”, “ • This “Adaptive Learning”.

11. DOUBLE-LOOP LEARNING • This occurs when, in additiion to detection and correction of errors, the organization questions and modifies its existing norms, procedures, policies and objectives. • It involves changing the organization’s knowledge-base or firm-specific competences or routines. • It is calles “Higher-Level Learning”, • “Strategic Learning” :Learning to expand organization’s capabilities • The process by which and organization makes sense of its environment in ways that broaden • The range of objectives it can pursue or • The range of resources and actions available to it for processing these objectives.

12. DEUTERO-LEARNING • This occurs when organizations learn HOW to CARRY OUT Single-loop learning and Double-loop Learning. • Being aware of ignorace motivates learning. • Identification of LEARNING STYLES and FACILITATING FACTORS required to promote learning.

13. STRATEGIC LEARNING • WHY AND HOW to change the organization. • DOUBLE-LOOP LEARNING • DEUTERO-LEARNING • (Single-loop learning is concerned with accepting change without questioning underlying assumptions and core beliefs)

14. Three Ms in Learning Organizations • MEANING: • Well-grounded definition, actionalbe and easy to apply • MANAGEMENT • Clear guidelines for practice,filled with operational advice rather than high aspirations. • MEASUREMENT • Tools for assessig an organization’s rate and level of learning to ensure that gains have in fact made.

15. ACTIVITIES OF LEARNING ORGANIZATIONS • SYSTEMATIC PROBLEM SOLVING • EXPERIMENTATION WITH NEW APPROACHES • LEARNING FROM THEIR OWN EXPERIENCE AND PAST HISTORY • LEARNING FROM THE EXPERIENCES AND BEST PRACTICES OF OTHERS • TRANSFERRING KNOWLEDGE QUICKLY AND EFFICIENTLY

16. SYSTEMATIC PROBLEM SOLVING • Ideas of Quality Movement • Plan, Do, Check, Act cycle • Insisting on data rather than assumptions • Using simple statistical tools • DOUBLE-LOOP LEARNING • Insisting on assumptions

17. EXPERIMENTATION • Systematic search for and testing of new knowledge. • It is usually motivated by opportunity and expanding horizons, not by current difficulties (as happens in Problem-solving)

18. LEARNING FROM PAST EXPERIENCE • Companies must review their successes and failures, assess them systematically, and record the lessons in a form that employees find open and accesible. • A productive failure is one that leads to insight, understanding, and thus an addition to the commonly held wisdom of the organization.

19. LEARNING FROM OTHERS • Not all learning cames from reflection and self-analysis. • Sometimes the most powerful insights come from looking outside one’s immediate environment to gain a new perspective. • BENCHMARKING is an ongoing investigation and learning experience that ensures that best industry practices are uncovered, analyzed, adopted and implemented. • The greatest benefits came from stuying practices, the way that work gets done, rather than results, and from involving line managers in the process.

20. TRANSFERRING KNOWLEDGE • FOR SUCCESFULL LEARNING, KNOWLEDGE MUST SPREAD QUICKLY AND EFFICIENTLY THROUGHOUT THE ORGANIZATION. • Ideas carry maximum impact when they are shared broadly rather than held in a few hands. • Mechanisms: • Written, oral and visual reports • Site visits and tours • Personnel rotation programs • Education and training programs • Standardization programs • Absorbing facts by reading them or seeing them demonstrated is one thing; experiencing them personally is quite another. • It is very difficult to become knowledgeable in a passive way

21. FIRST STEPS IN LEARNING ORGANIZATIONS: MANAGERS • LEARNING ORGANIZATIONS CULTIVATE THE ART OF OPEN, ATTENTATIVE LISTENING. • MANAGERS MUST BE OPEN TO CRITICISM. • The first step is to foster and environment that is conductive to learning. • Only if top management explicitly frees up employees’ time for the purpose does learning occur with any frequency.

22. LEARN TO LEARN: Manage the creative process • UNDERSTAND YOUR SELF: • IDENTIFY HOW YOU THINK AND PROCESS INFORMATION • The MYERS-BRIGGS TYPE INDICATOR • DESPERSONALIZE CONFLICT • Successful managers spend time getting members of diverse groups to acknowledge their differences • INNOVATION requires COLLABORATION AMONG VARIOUS PLAYERS WHO SEE THE WORLD IN INHERENTLY DIFFERENT WAYS. • UNDERSTAND ORGANIZATIONAL ROUTINES

23. COMMUNITIES OF PRACTICE • Communities of practice are groups of people who share a concern or a passion for something they do and learn how to do it better as they interact regularly. ( E. Wenger) • Communities of practice enable practitioners to take collective responsibility for managing the knowledge they need, recognizing that, given the proper structure, they are in the best position to do this. • Communities among practitioners create a direct link between learning and performance, because the same people participate in communities of practice and in teams and business units. • Practitioners can address the tacit and dynamic aspects of knowledge creation and sharing, as well as the more explicit aspects. • Communities are not limited by formal structures: they create connections among people across organizational and geographic boundaries. http://www.ewenger.com/theory/

24. ORGANIZATIONAL ROUTINES • Learning is stored in routines • Patterned sequences of learned behavior involving multiple actors authority who are linked by relations of communication and/or • Routines are a structural feature of organizations • It is a system that control action and interaction • Experience constructs socially-approved conceptions of efficient and legitimae practices that become encoded in routines or the rules of the game. • Routines include not only demands, concerns and skills, but also subjectivity, meaning and learning. • Organizations use LEARNING AS A BASIS FOR CHANGING ORGANIZATIONAL ROUTINES

25. ROUTINES ROUTINES INTERACTION Tangibles & Intangible Resources (knowledge) TEAM MANAGEMENT - Trust DYNAMIC CAPABILITIES Evolution of Linkages- Interaction inside the firm and within CLUSTERS Dynamic nature of intangible resources INTELLECTUAL CAPITAL Measure & Management Intangible Resources

26. ROUTINES • STRUCTURAL CONTEXT • HARD MODEL: The actors are linked through AUTHORITY • POWER, CONTROL, AUTONOMY • SOFT MODEL: The actors are linked through COMMUNICATION • COLLECTIVE MIND, Leadership • MULTIPLE ACTORS GAIN, MAINTAIN AND NEGOTIATE POWER BY INTENTIONALLY HOLDIGN, SHARING AND MODIFYING INFORMATION AND KNOWLEDGE. • EXPERIENCE HAS TO BE INTERPRETED IN ORDER TO LEARN FORM IT, BUT THERE ARE THREATS TO VALID INFERENCE. • Múltiple actors tend to interpret throug calling attentio to varios sources of ambiguity that undermine organizatioonal judgments of success and failure. • By changing our INTERPRETIVE CONCEPTS NOW, WE MODIFY WHAT WE HAVE LEARNED EARLIER. • TRUST • Diversity might be appropriate for learning, but mutual learning requires a context where actors are linked through exchanging and open sharing of valid information in a setting where they have confidence and come to TRUST one another. • The voluntary transfer of experience is an act of trust that may reside in IDENTITY and in RECIPROCITY.

27. Components of TRUST Levels ofTRUST Information Technology CALCULUS- BASED TRUST • COGNITIVE EMOTIONAL INTELLIGENCE Managing Emotion Understanding Emotion Using Emotion Perceiving Emotion KNOWLEDGE- BASED TRUST AFFECTIVE IDENTIFICATION-BASED TRUST Identity TRUST

28. TEAMS Teams can create more adaptative organizations that are able to respond with agility. The practical knowledge about how to actually operate project teams is still in an embryonic stage.

29. Emotional Intelligence TRUST Identity, Values Project Manager Matrix Organization Team Work AGILITY TEAM MANAGER & TRUST Agility and Project Managers: The Role of Emotional Intelligence and Trust

30. Emotional Intelligence and Trust • Appraisal of “Management by Wondering around” http://www.mindtools.com/pages/article/newTMM_72.htm http://www.economist.com/node/12075015 • this approach fostered high morale and personal satisfaction among the company’s workforce • Ex. HP:The “Rules of the Garage” “The HP way” builds on the beliefs and core values inherent in the HP Way: http://www.smartplanet.com/blog/business-brains/time-for-more-mbwa-management-by-walking-around/1040 • ·         respect for the individual, • ·         contribution to customers and the community, • ·         uncompromising integrity, • ·         teamwork • ·         innovation. • Improve performance in matrix organizations by applying the four components of emotional intelligence, specifically, managing, understanding, using, and perceiving emotion, to each interpersonal challenge • It is easy for the Project Manager to get involved in social and organizational activities that promote the different levels of trust, even reaching the IBT (Identity Based Trust) In order to increase trust and EI, people at HP find many types of socialization activities • ICT contributetodevelop better communication and transmission of information in real time

31. TEAM MANAGEMENT • How people interact? • People personality • People interactions

32. TEAM MANAGEMENT:MBTI INDICATOR OF PERSONALITY • 2 dimensions: HOW PEOPLE • PERCEIVE • How people become aware of things, people, happening or ideas • Extraversion vs. Introversion • JUDGE • The ways of coming to conclussions of what have been perceived • Intuition vs. Sensing

33. MBTI, preferences of individuals • Favorite world: Do you prefer to focus on the outer world or on your own inner world? This is called Extraversion (E) or Introversion (I). • Information: Do you prefer to focus on the basic information you take in or do you prefer to interpret and add meaning? This is called Sensing (S) or Intuition (N). • Decisions: When making decisions, do you prefer to first look at logic and consistency or first look at the people and special circumstances? This is called Thinking (T) or Feeling (F). • Structure: In dealing with the outside world, do you prefer to get things decided or do you prefer to stay open to new information and options? This is called Judging (J) or Perceiving (P).

34. MYERS-BRIGS INDICATOR, TYPES http://www.myersbriggs.org/my-mbti-personality-type/mbti-basics/the-16-mbti-types.asp • ISTJ • Quiet, serious, earn success by thoroughness and dependability. Practical, matter-of-fact, realistic, and responsible. Decide logically what should be done and work toward it steadily, regardless of distractions. Take pleasure in making everything orderly and organized – their work, their home, their life. Value traditions and loyalty. • ISFJ • Quiet, friendly, responsible, and conscientious. Committed and steady in meeting their obligations. Thorough, painstaking, and accurate. Loyal, considerate, notice and remember specifics about people who are important to them, concerned with how others feel. Strive to create an orderly and harmonious environment at work and at home. • INFJ • Seek meaning and connection in ideas, relationships, and material possessions. Want to understand what motivates people and are insightful about others. Conscientious and committed to their firm values. Develop a clear vision about how best to serve the common good. Organized and decisive in implementing their vision. • INTJ • Have original minds and great drive for implementing their ideas and achieving their goals. Quickly see patterns in external events and develop long-range explanatory perspectives. When committed, organize a job and carry it through. Skeptical and independent, have high standards of competence and performance – for themselves and others. • ISTP • Tolerant and flexible, quiet observers until a problem appears, then act quickly to find workable solutions. Analyze what makes things work and readily get through large amounts of data to isolate the core of practical problems. Interested in cause and effect, organize facts using logical principles, value efficiency. • ISFP • Quiet, friendly, sensitive, and kind. Enjoy the present moment, what’s going on around them. Like to have their own space and to work within their own time frame. Loyal and committed to their values and to people who are important to them. Dislike disagreements and conflicts, do not force their opinions or values on others. • INFP • Idealistic, loyal to their values and to people who are important to them. Want an external life that is congruent with their values. Curious, quick to see possibilities, can be catalysts for implementing ideas. Seek to understand people and to help them fulfill their potential. Adaptable, flexible, and accepting unless a value is threatened. • INTP • Seek to develop logical explanations for everything that interests them. Theoretical and abstract, interested more in ideas than in social interaction. Quiet, contained, flexible, and adaptable. Have unusual ability to focus in depth to solve problems in their area of interest. Skeptical, sometimes critical, always analytical. • ESTP • Flexible and tolerant, they take a pragmatic approach focused immediate results. Theories and conceptual explanations bore them – they want to act energetically to solve the problem. Focus o n the here-and-now, spontaneous, enjoy each moment that they can be active with others. Enjoy material comforts and style. Learn best through doing. • ESFP • Outgoing, friendly, and accepting. Exuberant lovers of life, people, and material comforts. Enjoy working with others to make things happen. Bring common sense and a realistic approach to their work, and make work fun. Flexible and spontaneous, adapt readily to new people and environments. Learn best by trying a new skill with other people. • ENFP • Warmly enthusiastic and imaginative. See life as full of possibilities. Make connections between events and information very quickly, and confidently proceed based on the patterns they see. Want a lot of affirmation from others, and readily give appreciation and spanport. Spontaneous and flexible, often rely on their ability to improvise and their verbal fluency. • ENTP • Quick, ingenious, stimulating, alert, and outspoken. Resourceful in solving new and challenging problems. Adept at generating conceptual possibilities and then analyzing them strategically. Good at reading other people. Bored by routine, will seldom do the same thing the same way, apt to turn to one new interest after another. • ESTJ • Practical, realistic, matter-of-fact. Decisive, quickly move to implement decisions. Organize projects and people to get things done, focus on getting results in the most efficient way possible. Take care of routine details. Have a clear set of logical standards, systematically follow them and want others to also. Forceful in implementing their plans. • ESFJ • Warmhearted, conscientious, and cooperative. Want harmony in their environment, work with determination to establish it. Like to work with others to complete tasks accurately and on time. Loyal, follow through even in small matters. Notice what others need in their day-by-day lives and try to provide it. Want to be appreciated for who they are and for what they contribute. • ENFJ • Warm, empathetic, responsive, and responsible. Highly attuned to the emotions, needs, and motivations of others. Find potential in everyone, want to help others fulfill their potential. May act as catalysts for individual and group growth. Loyal, responsive to praise and criticism. Sociable, facilitate others in a group, and provide inspiring leadership. • ENTJ

35. PEOPLE INTERACTIONS Consider the personality the everyperson and study their interactions for analyzing: • Team building • Leadership • Communications • Team dynamics http://www.teamtechnology.co.uk/teambuilding.html http://www.coaching-for-new-women-managers.com/Myers-Briggs-Type-Indicator.html

36. CLUSTERS – open innovation • FIRMS & LOCATION • GEOGRAPHICALLY CONCENTRATED NETWORKS WHERE NEW KNOWLEDGE IS CREATED AND ORGANIZATIONAL LEARNING DEVELOPED Ex: http://www.kompetenznetze.de/initiative • INTER-ORGANIZATIONAL ROUTINES • Open innovation: • the use of purposive inflows and outflows of knowledge to accelerate internal innovation and to expand the markets for external use of innovation, respectively”. (Chesbrought 2003)

37. Cluster - Example St. Louis Biobelt Cluster http://www.divergence.com/images/downloads/biobelt.pdf http://www.stlcommercemagazine.com/archives/april2006/cover.html http://www.bioenterprise.com/images/company_assets/512F1C7F-0D64-4A5E-9D91-785DC064755F/bioregionstlouiseyesclevelandjuly2008_f5b2.PDF

38. THANK YOU FOR YOUR ATTENTION