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Learning Organisation. Why Learning organisation?. Because we want superior performance To improve quality For customers For competitive advantage For energized committed work force. Why Learning organisation?. To manage change Because time demands it
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Why Learning organisation? • Because we want superior performance • To improve quality • For customers • For competitive advantage • For energized committed work force
Why Learning organisation? • To manage change • Because time demands it • Because we recognize our inter-dependence • Because we want it!
The essence of the learning organization • Skills and Capabilities • Awareness and Sensibilities • Attitudes and Beliefs
Skills and Capabilities • Aspirations: To orient ourselves towards what we really care about; and to change because we want to, not just because we need to. • Reflection and Conversation: The capacity to reflect on deep assumptions and patterns of behaviour both individually and collectively. • Conceptualization: The capacity to see larger systems and forces at play; constructing coherent descriptions of the whole
Awareness and Sensibilities • Ability to “see” underlying structures driving behaviour. • Increasingly aware of the ways in which we continually construct our views of the world. • “Listening to the whole”, hearing not only what is said, but the deeper meanings.
Attitudes and Beliefs • New awarenesses are gradually assimilated into basic shifts in attitudes and beliefs. • It takes time. • When it does, it represents change at the deepest level in an organization culture. • The set of beliefs and assumptions that develops over time in a learning organization is so different from the traditional hierarchical, authoritarian organizational world view.
Paradigm Shift In Learning • From individual to collective • From local to global audience • From just-in-case to just-in-time and just-enough learning • From scheduled restricted time period modules to anywhere/anytime training modules
Characteristics of a Learning Organization • There exists a shared vision which is co-created. • People discard their old ways of thinking and the standardroutines they use for solving problems or doing their jobs. • Members think of all organizational processes, activities, functions, and interactions with the environment as part of asystem of interrelationships.
Characteristics of a Learning Organization • People openly communicate with each other (across verticaland horizontal boundaries) without fear of criticism or punishment. • People sublimate their personal interest and fragmenteddepartmental interests to work together to achieve the organization’s shared vision.
Five Disciplines of Learning Organization: “Common ideals and directions” Shared Vision “Self Management” “My premises about how the world works” Personal Mastery Learning Organisation Mental Model System Thinking Team Learning “Thinking together” “Seeing the bigger picture”
Future Vision • Learning Organisation • Professional Team • Generative learning for desired results • Managing Change
Bench Mark Cap/Sales 5.3 3.6 8.9 3.4 HP: 0.2 Indian • Hindustan Lever • HDFC Bank • Infosys • Sundram Fastener World Class • General Electric • Sony
Current Reality • Inadequate competency • Not fully able to utilise IT for growth • Lack of professionalism in business dealings • Poor response to customer needs • Inadequate inter-departmental coordination
Current Reality • Lack of involvement in meeting targets • Lack of ownership towards goals • Lack of sense of urgency
Gaps or Challenges To transform from Static / Reactive Organisation To Dynamic / Learning Organisation
Events(Specific events that characterize the current reality) • Inconsistent market share • Declining profitability • Dissatisfied customers • Loss of customer loyalty • Increase in inactive customers
Events • Dissatisfied employee • Dissatisfied vendor • Unprepared calls on customer • Broken promises/delays • Employee attrition
Patterns(Behaviour over time of key indicators in the current system) • Inconsistent market share • Declining profitability • Increase in number of dissatisfied customers
Patterns • Declining customer loyalty • Increase in inactive customers • Fluctuating market share. • Widening gap between customer expectations vis-à-vis services rendered.
Patterns • Growing dissatisfaction among other stake holders. • Market follower than trend setter. • Duplication of work. • Consistent margin erosion
Mental Models(Prevailing assumptions, beliefs & values) • Traditional / Closed mindset of protected environment • Our job is not affected by loss of sales or customers
Mental Models • We can survive and grow in career without growth in business • Under performance will not affect me.
Mental Models • We can do business even without being professional • We can also get career progression by good PR • The principle of “Survival of Fittest” is not applicable to us
Mental Models • No focus on specialisation-no need for acquiring new skills • Any one can do any job
Systemic Structure(Producing most dominating pattern of behavior in current system) • No initiative and efforts taken to improve competence and professionalism of work force. • Excuses for loosing market share or customers.
Systemic Structure • Targets are fixed mostly on Top-down approach. • No immediate reward/ punishment system • Non performance is tolerated and ignored.
Events(Specific illustration which envisage day to day operation of vision) • Increase in sales and profitability • Customer delight • Increase of customer base. • Enriched & motivated employee
Events • Satisfied stake holders • Trend setter • Job satisfaction • Sense of pride • Negligible employee attrition
Patterns(Key indicators which show that the desired vision is a reality) • Paradigm shift in learning from individual to collective, from local to global • Prompt response to customer • Consistent improvement in market share & profitability
Patterns • Consistent decline in customer complaints • Consistent improvement in market capitalization • Strong brand image and high brand equity • Continuous reduction in cost
Mental Models (Assumptions, beliefs, values needed to realise the vision) • Competitive mindset • Business not possible without being professional and competent.
Mental Models • Loss of sales or customers will affect my job • My career progression will depend upon my performance.
Systemic Structure(Required to operationalize new mental models & achieve future vision) • Initiative and conscious efforts are taken to improve competence and professionalism of work force.
Systemic Structure • Target setting is rationalized & logical (market potential, logistics, etc.) • Salary based on performance
Key Activities-Customer Oriented • Development of structured format (content and periodicity) for customer calls at all levels : 1 month • Qualitative technical support to customers (SEOP) • Vigorous follow up with new/competitors customers
Key Activities-Employee oriented • Institute performance oriented rewards/recognition/punishment schemes- Effective appraisal system • Conduct periodical (monthly) reviews and demand performance • Systematise employee competency mapping
Key Activities-Employee oriented • Develop comprehensive customer data/profile : 3 months • Develop system of sharing of knowledge, success/experience • Bulletin boards on intranet • Discussion threads
Key Activities-Employee oriented • Acquire new skills every year outside your function for all employees • Develop/conduct training modules for enhanced skills for employees • IT: Annual • Technical Services: Biannual • Functional training (Finance, System) : Annual • Behavioural : Once in two years
KEY Activities-Organisation • Exercise strict control on working capital management. • Concept of Internal customer to be developed • Simplified approval procedure like online approval • Total implementation of BPR practices.
KEY Activities-Organisation • Faster decision making and sense of urgency • Inculcate paperless culture • Profit centre approach • Enhancing trust level in other stake holders • Outsourcing of services
Expected Outcome • A Learning Organisation with a professional team • Ever ready to accept all challenges and surpass all targets to become a MARKET LEADER.
