TMS: Organizational Learning (plus a bit of CI & TQM thrown in)

Frances Jørgensen

frances@plan.aau.dk

Organizational Learning

What do we mean by ”organizational learning”? ”The Learning Organization”? Why the interest in

organizational learning? What has organizational learning to do with your projects?” How do we measure

organizational learning? What are some of the challenges to creating a “Learning Organization” and/or

for establishing Organizational Learning?

Learning objective: for the student to gain an basic understanding of organizational learning from theoretical

and practical perspectives, especially in terms of how these relate to organizational structure, systems, and

processes.

What do we mean by Organizational Learning?

• How can an organization learn?– Individual learning?– Group learning?– More?

• How do we know that an organization has learned?

Learning as Change

• Arygris and Schön (1978): a process of detecting and correcting error (behavioral, observable, measurable).

• Probst and Büchel (1997): the process by which the knowledge and value base changes, leading to better problem-solving and capacity for action (cognitive with expectation of behavioral changes)

• Friedlander (1983): also changes that lead to new insights and understanding

Learning Cycles…from individual to group to organization?

DoingDoing

DecidingDeciding ThinkingThinking

ReflectingReflecting

The Kolb learning cycle

abstract

concrete

active reflective

Plan

Do

Check

Act

PDCA Cycle

Levels of Organizational Learning

• Single-loop learning: following present rules/policies to achieve present objectives (Arygris, C. and Schön, D. Organizational Learning, Reading, Mass: Addison-Wesley).

• Double-loop learning: modification of rules/policies to achieve new objectives (ibid)

• Deutero-learning: learning from learning (Bateson,1973)

How do we know if/when an organization has learned?

• Learning as a result: learning has occurred if there is improvement of results

• Learning as a process: routines change as a result of accumulated experiences

An Organization “Memory”• Experience from learning processes are stored in the

organization’s “memory”—routines, norms, procedures, beliefs, stories, strategies, and technology.

• Experiences can also go against formal routines and procedures.

• Experiences are transferred through socialization, education, imitation, transfer of personnel, mergers, acquisitions, etc.

• Experiences can survive after those involved leave the company; new employees may follow the routines developed from experience but often lack the background on which those routines were based.

Eleven Characteristics of the Learning Company

1. A Learning Approach to Strategy2. Participative Policy Making3. Informating4. Formative Accounting and Control5. Internal Exchange6. Reward Flexibility7. Enabling Structure8. Boundary Workers as Environmental Scanners9. Inter-company Learning10. A Learning Climate11. Self-Development Opportunities for All

(Pedler, Burgoyne, and Boydell, 1997)

A Learning Organization needs …

• Systematic problem solving• Experimentation with new approaches• Learning from past experiences• Learning from the experiences and best

practices of others• Transferring knowledge quickly and effectively

through the organization (Garvin, 1993)

Continuous Improvement

• is defined as…– ”...the planned, organized and systematic

process of on-going, incremental and company-wide change of existing practice aimed at improving company performance (Boer et al., 2000).”

• is based on…– Continuous development & learning– Full utilization of employee potential – Employee responsibility for improvement

Strategic CI

CI Innovation Capability

TIME

Natural CI

Systematic CI

Goal Directed CI

Proactive/Self-driven CI

Kaizen (Imai, 1986)

• Kaizen: – Process-oriented: results can only be

improved if processes are improved– People-oriented: based on the belief that

people’s natural desire for quality and value, and that it will pay for itself in the long run.

– Standard-oriented: standards are required in order for improvement to occur.

What is it all about?

It’s really very simple! Basically, when you have done something,

think about what has been done and try to do it better the next time!

• 1 technician from each of 4 teams goes to the manager’s office at least once each day

Accounting :• workdays i 1997 = 230 days• Distance to office = 2x90 =180 m there and

back• 4*180*230 =165.600 m ~165 km

Conclusion• If these trips are cut by just one ½, 83 km

walking is saved.

What about coordinating the teams? What about another form of communication?

Balancing Radical Change & CI

practice or performance standard development without

maintenance

Time

radicalinnovation

maintained practiceor performance standard

continuously improvedpractice or performance standard

Practice orperformance

standard

maintenance

continuousimprovement

radicalinnovation

Kilde: Imai, 1986

Kaizen/Innovation Comparison (Cole, R., CI2000 Conference, Aalborg)

Individual ideas and efforts

Collectivism, systems approach

Approach

Select championsEverybodyInvolvement

Abrupt and volatileGradual & constantChange

Intermittent and non-incremental

Continuous and incremental

Timeframe

Big stepsSmall stepsPace

Short term but dramatic

Long term and long lasting, undramatic

Effect

INNOVATIONKAIZENFEATURES

Kaizen/Innovation Comparison (cont’d)

Suited to fast growth economy

Works well in slow growth economyAdvantage

Results focusProcess focusEvaluation Criteria

TechnologyPeopleEffort Focus

Requires great investment, little maintenance

Requires little investment, lots maintenance

Practical Requirements

Tech breakthroughConventional know howSpark

Scrap and RebuildMaintenance & ImprovementMode

INNOVATIONKAIZENFEATURES

The Maturity Model

• Natural CI: No formal CI structure, problem-solving is seldom & often conducted by specialists.

• Systematic CI: Formal attempts at creating, supporting, and maintaining CI; formal problem-solving procedures are used and supported by basic CI tools. CI often run parallel to work processes.

• Goal-oriented CI: In addition to above, formal diffusion and application of strategic goals, with monitoring & measuring of CI in relation to these goals.

• Pro-active/self-driven CI: In addition to above, with the responsibility for CI being assumed by the problem-solving units themselves (department, groups, etc.)

• Strategic CI: Full implementation…the learning organisation, a dominate lifestyle involving all in organisation. Active learning occurs naturally and is shared automatically. Combined large & small innovations

Key Aspects of CI• Suggestions, support of recognition, pay, and

educational systems• Application of production techniques &

quality-related management methods, tools, and techniques.

• Individual & group-based contribution (within and across functions)

• Not “obligatory” or “volunteer”; rather, normal, daily activities.

• Organization-wide support & involvement (production, management, departments e.g. product/process development)

Key aspects of CI (cont’d)• Top down / bottom up; planned, strategy driven

and “emergent” contributions to strategy development.

• Various levels of integration between action and reflection: PDCA cycle (problem identification/solution proposals in Japan/USA); full ownership of entire cycle (analysis, solutions, implementation in Scandinavia).

• Encourage individual & organizational learning as part of daily activities

• Numerous projects occurring simultaneously; not hit and miss

• Not just in production; moving into service areas• Not just internal processes; moving into supply

chain and networks

Benefits of CI

• Small improvements in quality, costs, delivery time, safety, job improvement, etc.

• Establishes foundation for other (larger) improvements (i.e. radical changes)

• Maintenance & improvement of larger changes (e.g. Lego maintenance of BPR project results)

• Development of competencies, learning, self-management (e.g. Coloplast autonomous teams)

Plan Do Check ActPlanning and preparation, based

on an analysis of existing practices and performance

Plan

Do: Implementation of the plan

CheckCheck whether changes have

resulted in expected improvements

Act:

The new practices are standardized but opportunities for

further improvement remain open

10 CRITICAL AREAS of CONTINUOUS IMPROVEMENT

10 Behavioral Norms1 Employee knowledge/understanding of competition &

objectives 2 Individuals/Group conducting goal-oriented improvements3 CI process are followed and developed (training, team-

work, tools, etc.)4 CI processes are continuously evaluated with respect to

consistency with organizational culture, systems, andprocedures

5 Managers show support for and contribute to CI activities6 All employees are actively involved in improvements7 Cross-functional cooperation throughout8 Mangers and employees learn from their own and others

negative and positive experiences9 Personal and group experiences are actively shared and

relevant application is ensured10 Shared values guide the CI process

Based on: CENTRIM Selfassessment Tool, Brighton University, UK

•A change in organization’s technology (way of doing work), in the organization's culture (its norms, values, and belief systems), and a change in an organization's political system (decision making processes and power bases), with the objective of satisfying internal and external customers and suppliers .

•Significant changes cannot be expected unless all of these dimensions are aligned. TQM implemented as simply technological change will not be successful (Tichey, 1983).

TQM

Total = Quality involves everyone and all activities in the company.

Quality = Conformance to Requirements (Meeting Customer Requirements).

Management = Quality can and must be managed.

TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do.

TQM

•Quality can and must be managed. •Everyone has a customer and is a supplier. •Processes, not people are the problem. •Every employee is responsible for quality. •Problems must be prevented, not just fixed. •Quality must be measured. •Quality improvements must be continuous. •The quality standard is defect free. •Goals are based on requirements, not negotiated. •Life cycle costs, not front end costs. •Management must be involved and lead. •Plan and organize for quality improvement.

Principles of TQM

• A first step in TQM implementation involves assessing the current state of the organization (history, needs, preconditions, factors leading to decision to adopt TQM, and employee relationships).

• One method of conducting this assessment is the force field analysis

Implementing TQM

DRIVING FORCES RESTRAINING FORCES

Environmental pressures leading to reduced funds

Middle management fear of loss of control

Staff who may like to be more involved in agency decision making

Lack of time for line workers to take time for TQM meetings

Successful applications of TQM elsewhere

Skepticism based on the organization's poor performance regarding change

Sample Force Field Analysis

•Define the process •Measure process performance (metrics) •Review process performance •Identify process shortcomings •Analyze process problems •Make a process change •Measure the effects of the process change •Communicate effects to all parties

Process management and improvement