15

Designing and Leading a Learning Organization

Chapter Objectives

Trace the evolution of leadership through four eras to the learning leadership required in many organizations today.

Recognize how leaders build learning organizations through changes in structure, tasks, systems, strategy, and culture.

Know when and how horizontally organized structures provide advantages over vertical, functionally organized ones.

Distinguish between tasks and roles and how each impacts employee satisfaction and organizational performance.

Meet the dual challenge of supporting both efficiency and learning by using ambidextrous organization design elements, embracing technology, and using after-action reviews.

Leadership Evolution

Matrix (next slide) along dimensions of Environment

Stable – remains the same over few years Chaotic – environment shifts abruptly/unpredictably;

leaders support risk/learning

Scope Micro – on individual basis & concerned with

specific tasks and situations Macro - on community basis & looks at concerned

with purpose, strategy & culture

Ex. 15.1 Leadership Evolution

Era 2Rational Management

•Behavior theories•Contingency theoriesSetting:•Vertical hierarchy, bureaucracy•Management functions

Era 1Great Man Leadership

•Trait theoriesSetting:•Pre-bureaucratic organization•Administrative principles

Era 3Team Leadership

•Confusion•Empowerment•QualitySetting:•Horizontal organization•Cross-functional teams•DownsizingEra 4

Learning Leadership

•Shared vision, alignment, relationships•Facilitate change and adaptationSetting:•Learning organization•E-Business

Scope

Macro

Micro

ENVIRONMENT

Stable Chaotic

Learning

A change in behavior or performance that occurs as a result of experience

Learning Organization

Key word: “resilience” Each person in the organization

involved in identifying/solving problems

Organization continues to grow/change to meet new challenges

Adaptive Learning Cycle

A cycle of action, feedback, and synthesis that all living organisms share

Ex. 15.2 The Adaptive Learning Cycle

Synthesis Feedback

ActionD

ecid

ing

Learning

Sensing

Learning Organization

•One in which everyone is engaged in identifying and solving problems

Learning Organization

Leaders encourage experimentation, taking risks, making mistakes, changing

Can lead to new products/services and better ways of doing business

Average lifespan of a Fortune 500 Company only 50 years because focus is on profit, not learning/change

Learning organization based on equality, open info, little hierarchy, culture that promotes learning, empowerment, collaboration with other departments and firms

As Opposed to traditional efficient organizations

Ex. 15.3 Two Models of Organization

Routine tasks

Efficient Performance(Hard, rational model)

Vertical Structure

Formal systems

Competitive strategy

Rigid culture

Ex. 15.3(contd.)

Learning Organization(Soft, intuitive model)

Horizontal structure

Empowered roles

Personal networks

Collaborative strategy

Adaptive culture

Horizontal Structure

Learning Organizations characterized by horizontal structures – Structure created around workflows

rather than departments Process-based, with people having

access (communication & info) to each other in the process-chain

Characterized by “self-directed” teams Boundaries between departments

blurred/minimized

Ex. 15.4 Evolution of Vertical to Horizontal Structure

A.Vertical functional organization

B.Functional organization with

process overlays

Ex. 15.4 (contd.)C.

Horizontal organization based on processes

Tasks Versus Roles

Task: •A narrowly defined work assignment• In stable environments, tends to be rigidly defined•OK for stable environments – old organizations•Akin to Burn & Stalker’s mechanistic organization

Role: •A part in a social system•Has discretion and responsibility•Suitable for learning organizations•Akin to Burn & Stalker’s organic organization

Networks

Systems worked well in old organizations – formal systems to manage growing complexity; however, may stop the flow of vital info

New organizations need networks for quick, complete info

Ex. 15.5 An Organizational Communication

Network (adapted):

Marketing Manufacturing Engineering

Sharon

David

Competition versus Collaboration

Traditional organizations: Strategy flows downwards Rigid culture

Learning organizations: Strategy flows from anywhere Strategy also emerges from customers,

suppliers, even competitors (such organizations have permeable boundaries)

Adaptive culture

Leadership Challenge: Ambidextrous Organizations

Flexible organizations in which leaders incorporate structures and management processes that are appropriate to innovation and learning, as well as to the efficient implementation of ideas

Ambidextrous Organizations: how?

Balance efficiency & learning Embrace new technology – builds

bridges and facilitates info exchange – consider concept of knowledge management

Using after-action reviews – debriefs, take time to see what could have been done better (reflection) – means of learning

Knowledge Management

The efforts to systematically gather knowledge, make it widely available, and foster a culture of collaboration and learning