Building a Successful Learning Organization - Case Study Example

Learning Organization Company Profile About Us Commeta [3] is an Integrated Supply Chain Solution company which specializes in marketing and promotion activities ranging products from electronic, home appliances, gadget, toys, computer, jewelry and perks. Commeta is supported by many well known business partners from various electronic and home appliances brand name as Distributor, Dealer and Agent such as Philips, Sony, Samsung, Sanyo, JVC, Panasonic, LG, Toshiba, Akira, Canon, HP, Sony Ericsson, Nokia, Electrolux and others. Commeta was established in 1997 with the vision to enhance their services for their clients so that they can experience more benefits in their businesses. The Current CEO of the company is a young American woman Ms. Shannon Jake who had replaced the last CEO three years ago. The first 7 years of the company were very promising as they served and cooperated with many local companies and with many other Multi-National Companies as mentioned above. Commeta was and continues to be committed with their professional staff and information technology systems, which they believed can give more benefit and value for their clients. Here are some of the Core Values that Commeta holds. They believe in: Customer is our reason being Develop, Trust and empowering staff Quality as a usual Innovation in all positive things. The power of team work Working smart and happy in work environment Modest, honesty and fairness Recognize and celebrate achievement Dare to be different. Commeta has grown into a massive business and currently it offers: Total Supply Chain Solution For its customer’s satisfaction, Commeta has a professional staff with experience and dexterous skills to manage all projects from simple to complex with effective administrative and cost-effective means for their clients. Communication is the key to their business. With on going communication with clients, from consulting on existing supply chain processes to advising on the suitable merchandise for a loyalty program or reviewing the distribution routes, they aim to create successful relationships and hopefully return orders in the future. Starting from sourcing, receiving and storing of goods until the final destination to end customers, their commitment is to optimize the efficiency of the supply chain system to meet their client’s needs. With their proven track record as one-stop procurement and fulfillment centre, they want to assure their clients of their quality services at affordable cost. Currently they have the following infrastructure and services: Sourcing & Procurement They have more than 2000 products from category electronic, home appliances, gadget, toys, computer, jewelry and perks and are supported by more than 10 Business Partners such as Sony, Samsung, Philips, LG, Sharp, Olympus, Canon, Hewlett Packard, Acer, Sony Erickson etc. With these ranges of products and business partners, Commeta’s team of dedicated merchandisers keeps their clients abreast with new products available in the local and regional market, negotiate with multiple suppliers on behalf and perform consolidation of regional merchandise procurement. Another part they play in the industry is creating and selling their in-house brand, TISSOR. TISSOR is a line of office machinery products and home appliances for their clients to enjoy high quality products at affordable cost. Creating strong relationships with existing business partners further enables the clients to enjoy certain exclusivity in the selection of some merchandise. Fulfillment Management Employees and management at Commeta are very concerned about fulfillment of orders on time. Commeta believes and fully understand about their client expectations when their products are ordered. With their integrated system, pick and pack experience, team of highly staff, the clients would benefit from the fulfillment solution that their business requires. By proving complementary (most of the times) special packaging request for fragile and high value items or gift wrapping services, Commeta creates goodwill with its customers. Warehousing & Inventory Commeta has two warehouses, one located in Pesing are of approximately 600 square feet, another one located in Latumeten are of approximately 1500 square feet which makes Commeta having a total of approximately 2100 square feet of space. Both the warehouses are integrated to the system allowing a much smoother delivery chain of goods to the end customers and to be able to provide insights into their clients supply chain trend for on-going improvement in efficiency. Distribution & Logistics By cooperating with some of the distribution companies, Commeta’s distribution networks supports a variety of distribution models which are then sent directly to distribution centers, retailers or end consumers nationwide. Providing knowledge and training facilities to the emoplyees along with warehouse facilities, Commeta continues to enhance its services for their clients so that they can reap more benefits in their business. Background Commeta has been in operation since 1990 and in its initial years became of the leading businesses in the industry. However, the changing lifestyle and recent turn of events have left the company far behind in the race towards its goals achievement. The inability of the company to change its functions with the changing environment has been recognized as the major flaw for the current situation. With the saturation point of the industry reaching with newer competitions arriving, Commeta is in dire need for a complete over hauling of its current system. Realizing the need for change, the CEO of Commeta, Ms. Shannon Jake set up a meeting with the leading management consultants, Abacas Consulting, to find a solution to bring Commeta’s name back into the limelight. After several meetings and reviewing of Commeta’s functionality and files, Abacas Consulting proposed the CEO to support continuous improvement in the company by focusing of a management terminology known as building a “Learning Organization”. Abacus Consulting has sketched a rather simple plan to implement the basics of Learning Organization. The plan aims to achieve a rapid change and a quick adaptation of work processes. In a Learning Organization, change is seen as an opportunity to learn through problem solving. By shifting the focus from a role of ensuring compliance to one of serving customers, a learning organization can ensure that there is a strategic alignment between customer needs, organizational goals, individual learning, and resource allocations. To achieve a cost effective business a learning organization can make use of alternative strategies that integrate learning into the workplace. By implementing learning organization, managers start to serve as teachers and each individual is empowered to be responsible for his or her own learning. [7] Learning Organization Before implementing this concept, the management and the team should be absolutely clear on what Learning Organization really means. It has been described by different authors differently. Here are some of the well known definitions. “Organizational learning means the process of improving actions through better knowledge and understanding” [1] “Organizational learning is a process of detecting and correcting error” [2] “Organizational learning occurs through shared insights, knowledge and mental models… [and] builds on past knowledge and experience – that is on memory” [9] The well known promoter of this theory, Peter Senge (1990) [10] adopted a broader approach and all of the other perspectives together. Senge tends to suggest a composite theoretical ideal. “Senge (1990) defines that, Learning Organization are organization where people continually expand their capacity to create the results they truly desire, where new and expansive pasterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together”. Senge’s understanding of Learning Organization has been supported by Pedlar (1991) “the learning company is a vision of what might be possible. It is not brought about simply by training individual, it can only happen as a result of learning at the whole organization level. A learning company is an organization that facilitates the learning of all it members and continuously transforms it self...” A hybrid definition can be derived from the ones given above as “A learning Organization is an organization skilled at creating, acquiring and transferring knowledge and at modifying its behavior to reflect new knowledge and insights”. New ideas are essential for learning to take place. These ideas can come from a variety of places: outside the company, from the inside knowledge workers, from a sudden burst of creativity etc. However a proper implementation of the ideas to bring about a change is essential for a company to improve. [6] The Learning Process According to the OXFORD Advance Learner dictionary the word ‘learning’ is a noun which means knowledge gained by studying or skill by studying from experience, from being taught. Stewart (1992) stated that the learning process is natural, continuous, inevitable, and occur spontaneously within the organism. He implies that learning is discernible at both individual and organization level, and goes onto the question the exclusivity of Human Resource Development (HRD) and others such as intervention of the learning process. Stewarts’s model of the learning process component is reproduced in Figure 1. [6] This model suggests that learning involves changes in the individual and organization. This characterization of learning process, expressed in term of continuous and often unprompted shift in altitudes, abilities and behavior which is a useful paradigm to work with a change in behavior is a perceived output of the learning process. [6] Once the learning process occurs, it will be done continuously which involve the transfer of knowledge might as well gaining the knowledge within individual, team, and organization. These models and the theoretical implications have a profound impact on implementing the Learning feature in organizations. [6] Pre-Implementation Plan The Strategic Plan Abacus Consulting came up with a simple, yet a comprehensive plan to bring about a change in the organization. The plan outlined below caters to all the requirement of the company at the current time and is made based on foresight so that this plan will be able to function well beyond the achievement of current goals of the company. The strategic plan highlights the important steps that must be taken before hand to secure the smooth implementation of the action plan to turn the company into a Learning Organization. Time Frame Learning is a process and it occurs naturally, continuous, and is inevitable, and occurs spontaneously within the organism. Therefore a timeframe cannot and should not be assigned to make an organization into a Learning Organization. It is a continuous process that goes around throughout the life of the organization. Target Audience In the organization, the people who should be targeted to bring about the change will involve the people at the high-level managerial positions at first. These people will be responsible to create the sense of urgency to initiate the change at the grass root level too. Furthermore leaders and managers will themselves set examples of changing attitudes so that the subordinates are inspired to do the same. New Vision The new vision for the company would be to give better supply chain solutions to the customers and to continually enhance the system at each and every level to attain maximum customer satisfaction. The new vision will be set inline with the new policies introduced to build a Learning Organization. This new vision will also be beacon for the employees to look towards and get motivated. Initial Cost Apart from the consultancy fee for Abacus Consulting, cost will be incurred on redesigning the office and making the working place more attractive and easier to work at. These changes are believed to have a profound positive impact on the creativity and efficiency of the staff members. The additional costs will be incurred on hiring of new staff members. The initial cost outlay will be financed through the savings of the company, the investment from the management and financing through the bank. Hiring of New Staff In the first month of revamping the organization, a few individuals will have to be hired. A publicist will be employed to improve the falling image of the company by informing the customers about the evolutionary changes that are being brought about in the company. Recruitment of mentors from important positions in other companies will be a major challenge; however with adequate funds this problem will also be resolved. Implementation Plan Short Term Plan A company such as Commeta who has been on the decline for a few years now, the changing process may take some time to work out. Since Commeta has no previous setup for change management, Abacus Consulting has proposed a short term and along term strategic plan to change the current situation of the company and build it into a Learning Organization. The short term goals look to create a learning environment for the company. The motivation of the staff member and changes in the thinking and functioning of departments will be done during the short term phase. Other plans for the short term goals are: [6] [7] [12] Create and communicate a shared vision for the organization Begin with Diagnosis of the problem Work with the board of directors to find their views on problem solving Start With One Department to test the appropriateness of the idea Run a consciousness-raising development programmed Establish and use individual and organizational learning strategies Empower employees to act to gut feeling Build individual development plans quarterly Meet regularly across departments Use cross-functional teams Hold brainstorming (idea generation) sessions Long Term Plan Becoming a Learning Organization requires a cultural change for most organizations. This change in the organizational culture cannot be brought in a few days; therefore this goal has been kept a part of the long term plan. [6] [7] Work with the Strategic Plan Cycle Work out from the Human Resource Department Set up a series of task forces Start with a Common Conference or Teach In Keep information current and accurate Maintain historical knowledge and learn from it Make information in the organization accessible to all. Acknowledge and support the need to take risks. Help employees manage change by anticipating change and creating the types of change desired by the organization. Key Features of the Plan According to Peter Senge [10], “real learning gets to the heart of what it is to be human. We become able to re-create ourselves”. This applies to both individuals and organizations. Thus, for a ‘learning organization it is not enough to survive. ‘”Survival learning” or what is more often termed “adaptive learning” is important – indeed it is necessary. But for a learning organization, “adaptive learning” must be joined by “generative learning”, learning that enhances our capacity to create’ (Senge 1990:14). Peter Senge identified five strategies to innovate learning organizations. Application of these policies in the current system of Commeta is absolutely necessary to bring the radical change the organization requires. These policies are: Personal Mastery This discipline of aspiration involves formulating a coherent picture of the results people most desire to gain as individuals (their personal vision), alongside a realistic assessment of the current state of their lives today (their current reality). Learning to cultivate the tension between vision and reality can expand people’s capacity to make better choices, and to achieve more of the results that they have chosen. The central practice of personal mastery involves learning to keep both a personal vision and a clear picture of current reality before us. By experimenting with new ideas and processes, the employees can learn to take risk and as a result generate creativity in the organization. This process can be applied in Commeta by giving hard deadlines and challenging working environment so that the employees try to expand their personal capacity to perform more than a100% percent. [4] [11] Mental Models This discipline of reflection and inquiry skills is focused around developing awareness of the attitudes and perceptions that influence thought and interaction. By continually reflecting upon, talking about, and reconsidering these internal pictures of the world, people can gain more capability in governing their actions and decisions. The icon here portrays one of the more powerful principles of this discipline, the “ladder of inference” depicting how people leap instantly to counterproductive conclusions and assumptions. The strategic team in Commeta needs to develop and change the mental models of the employees including managers to focus their attention on bringing out changes in the organization at each and every step. They need to integrate systematic problem solving by looking at the end result that they desire and not individualistic goals. The company needs to rely on scientific methods to diagnose problems (Plan, Do, Check, Act). To make decisions, current and accurate data should be used rather than guesswork as is the case with most decision related problems in the past. The problem solving methodology can be further simplified by the help of using simple statistical tools (histograms, cause and effect diagrams). The source of the problem must be corrected rather than trying to solve the symptoms. [4] [11] Shared Vision This collective discipline establishes a focus on mutual purpose. People learn to nourish a sense of commitment in a group or organization by developing shared images of the future they seek to create (symbolized by the eye), and the principles and guiding practices by which they hope to get there. The leaders and managers must promote the visions of the company to all the employees. The employees must be made to feel that the visions of the organizations are in their best interest. Setting up vision and mission statements around the work place can help the managers achieve this. [11] Team Learning This is a discipline of group interaction. Through techniques like dialogue and skillful discussion, teams transform their collective thinking, learning to mobilize their energies and ability greater than the sum of individual members’ talents. The icon symbolizes the natural alignment of a learning-oriented team as the flight of a flock of birds. For learning to spread more quickly and efficiently throughout the organization, knowledge must be shared between all the employees. Ideas carry maximum impact when they are shared broadly rather than in a few minds. A variety of things spur this process, including on the field reports and tours, site visits, personnel rotation programs, education and training programs. This will help Commeta’s employees to learn of more ideas and processes of the industry and give them a chance to discuss the implementation of such ideas in their own company. [4] [11] Systems Thinking In this discipline, people learn to better understand interdependency and change, and thereby to deal more effectively with the forces that shape the consequences of our actions. Systems thinking is based upon a growing body of theory about the behavior of feedback and complexity-the innate tendencies of a system that lead to growth or stability over time. Tools and techniques such as systems archetypes and various types of learning labs and simulations help people see how to change systems more effectively, and how to act more in tune with the larger processes of the natural and economic world. This implies a circular loop of feedback throughout the organization which is also considered as the backbone of communication. For a changing organization such as Commeta, communication is ever more important. New tasks have to have delegated, new goals and visions have to be promoted to the employees and the new ideas must always be communicated so therefore communication and feedback are important steps for this procedure. To improve communication, the managers need to create an open environment that is conducive to free communication. The managers also need to follow up (feedback) the tasks they have assigned to their subordinates thus creating the circular loop of communication. [11] Leaders as Designers, Stewards and Teachers The five disciples discussed above essential in any work place to keep up with the changing times. However it is the role of the leader to realize its importance and keep the concept of learning organization alive in the organization to bring about continuous change. Apart from the basic functions and responsibility of Ms. Jake as the leader, she should also integrate three more characteristics in her skills. According to Peter Senge, in a learning organization, leaders should be designers, stewards and teachers as well. She is responsible for building organizations were her employees can continually expand their capabilities to understand complexity, clarify vision, and improve shared mental models – that is they are responsible for learning. [8] Issues and Problems [5] Not establishing a sense of urgency Not creating a powerful enough guiding coalition Lacking a vision Under communicating the vision Not removing obstacles for creating a new vision Not systematically planning for and creating short term wins Declaring victory too soon Not anchoring changes in the organizational culture Measurement “If you can’t measure, you can’t manage”, goes a famous quote. This shows the importance of measuring the change that has been brought. Conventional measuring techniques such as constructing learning and experience curves can be used to measure the impact of the operations. Furthermore a relatively new concept of measuring the half-life can be used. The half-life curve shows the time it takes to achieve a 50% improvement is a specified performance measure. In addition to the ways mentioned above, the managers should provide 360 degree feedback from peers, reporting staff members, and to the boss even. [4] Conclusion Learning organizations are not built in a day or even in a week. The most successful examples are the products of carefully cultivated attitudes, commitments, and management processes that take shape gradually over time. Any organization aiming to become a learning organization can take a few simple steps. Leaders are the key to any company and a good energetic leader is ever so important is a dynamic organization. Leaders provide the initial vision about why the organization exists and where it will be going by communicating the vision. They clearly communicate their belief that continuous growth, learning, and improvement will ensure its accomplishment. By building consensus and ownership around this vision, while at the same time being influenced by the views of others in the organization, they can take an organization to meet the world. [12] The first step is to foster a learning conducive environment. There must be time for reflection and analysis, to think about strategic plans, dissect customer needs, assess current work systems, and invent new products and service. The management on the top positions in Commeta should try to give more free time to the employees for the purpose of learning. [4] CEO of Commeta should initiate a better communication process throughout the organization that is both informal and informative at the same time. This will help open up boundaries and stimulate the exchange of ideas to keep the information flowing throughout the organization smoothly. When the system has been made more open and friendly, explicit learning goals must be promoted for the employees to remain in touch with the outside world. From this the employees would learn about new processes of managing supply chains, comparison of best the best processes, the new technologies that are being used, and newer and more creative ideas. Each of these activities fosters learning by requiring employees to wrestle with new knowledge and consider its implications. Eventually the idea of this activity is to stimulate the sharing of ideas so that the whole organization benefits from the experiences of any single person. [4] References 1. C. Marlene Fiol and Marjorie A. Lyles (1985), “Organizational Learning”, Academy of Management Review, October 1985 2. Chris Argyris (1977), “Double Loop Learning in Organizations”, Harvard Business Review, September-October 1977 3. “Company Profile” [Internet], Available at < http://www.Commeta.co.id>, Accessed on July 24, 2007 4. David A. Garvin (1993), “Building a Learning Organization” [Journal], Harvard Business Review, July-August 1993 Issue 5. John P. Kotter (1995), “Leading Change: Why transformational efforts fail” [Journal], Harvard Business Review, March-April 1995 Issue 6. Kamarrudin bin Ibrahim, “THE LEARNING ORGANIZATION: A REVIEW OF CONCEPT AND IMPLEMENTATION IN THE MALAYSIAN ARMY” [Internet], Available at , Accessed on July 24, 2007 7. “Learning Organization Overview” [Internet], Human Resource Development Council, Available at , Accessed on July 24, 2007 8. “Peter Senge and the learning organization” [Internet], Informal Education, Available at , Accessed on July 24, 2007 9. Ray Stata (1989), “Organizational Learning – The key to management innovation”, Sloan Management Review, Spring 1989 10. Senge, P. M. (1990) The Fifth Discipline. The art and practice of the learning organization, London: Random House. 424 + 11. Senge, P. M., Charlotte Roberts, Rick Ross, George Roth, Bryan Smith, and Art Kleiner (1999). The Dance of Change: The challenges of sustaining momentum in learning organizations. New York, Currency/Doubleday Page 32 12. Susan M. Heathfield, “Make Learning Matter: Become a Learning Organization” [Internet], About.com, Available at , Accessed on July 24, 2007 Read More