Learning Organization and Strategic Change - Article Example

?Running head: Summary Summary: The Learning Organization and Strategic Change Summary of the Article Organizations have developed different strategies, over the period of time, towards management change in order to tackle obstacles by planning and adopting appropriate actions. Each organization individually learns to change by experiencing problems and resolving them through planning and taking necessary measures. However, the organizations collectively have also learned the process of change over the passage of time. After the development of three models of strategic change, the fourth model, referred to as the ‘learning organization’, is evolving to assist organizations in developing and implementing organizational change in the rapidly modifying business environments. The previous three models of strategic change were based on the preferred methods indicating how companies can bring about fundamental changes in their work in the best manner. The first model emphasized almost exclusively over the senior management for the planning and implementation of change. This planning oriented model had several issues in the implementation phase of the planned change, such as time, speed, resources, etc. which were often found to be inadequate in comparison with the previously considered options during the planning phase. Also, the middle managers were often not committed to the planned change since they were not involved in the planning process and thereby, have difficulties in understanding the proposed plan. Though, these middle rank managers have important information and ideas to contribute to the planning of the desired change. Hence, the second model was developed that focused on the implementation phase by including the middle managers in the formulation of strategic change plans, where detailed execution schemes were also discussed and developed. However, the organizations still experienced a number of implementation issues such as inadequate progress, broad systemic issues (norms, culture, policies, rewards, management styles, etc.), unexpected delays and organizational resistance. Thus, the third model came into existence focusing on the readiness for change but still there were problems like broad scale resistance, time limits, and emergence of new problems not been anticipated before during the planning phase. The unusual aspect of this model had been the involvement of employees, customers, suppliers and other key stakeholders in the implementation process. Due to the drawbacks of the previous three models, the fourth model of strategic change that is called ‘the learning organization’ is under development right now. This new model engages everyone, involved in origination, in the identification and resolution of the problems, all of the time. Summary of the Author’s Conclusions and/or Recommendations The plans developed under the learning organization model are not just the concepts of top management but are also completely shared and supported by the people involved in the development of these plans. The learning organization model improvises change by means of small rewards, experiments and institutionalization of success across the organization instead of just executing plans by the numbers. The true form of the change is gradually revealed by the creative and spontaneous actions of the people across the organization. Accomplishments and successes are bolstered and institutionalized with the passing time, which changes or augments the formal structures, systems, and procedures of the organization. This model selects the action, reflects and modifies the course as it goes that improves the speed and effectiveness of the implementation of the planned change. However, there is a danger that this model will lead to its own quick fix solutions in a box and that this model will be recognized as the ultimate solution for the problems like surprise and stagnancy. Thus, this new model recognizes that any specific plan or program can be unsuccessful. Even with the employment of the learning organization model, organizations will still suffer from issues in making the change happen with the significant limitations of this model getting exposed over time. The next in line will be the fifth model of strategic change. Summary of My Conclusions and/or Recommendations In short, the learning organization model provides an appropriate organizational structure feasible for a rapidly changing environment, which is particularly as a result of its potential to predict the required change. This new model offers innovative ways for management during the situations of almost permanent economic crisis and uncertainty demanding for quick adjustments to be made to the market environment. The learning organization model is introduced when the organization acknowledges the need for change. However, there is no certain approach for the fourth model that has already been practically tested which is hard to believe that all the organizations follow one approach irrespective of their size, culture, field of industry, location, etc. Summary of the Concept in the Article in Relation to My Chosen Organization (Starbucks Coffee) Previously, Starbucks looked quite satisfied with the expansion alone and was not observed to be interacting with the customers for determining their preferences. Obviously, the need and preferences of the customers are always changing. Thus, the market conditions also show variations. Subsequently, Starbucks had been unable to keep up with the varying market trends and customer behaviors due to which its performance started to show a downward trend. Apparently, the reasons behind this downtrend have to be determined and appropriate remedies must be adopted in this regard. However, the desired remedies should have not only short-term effects but also long term influences. In relation to short term remedies, actions addressing the tactical changes are required and most importantly strategic goals need to be established or the existing strategic goal should be revised, if necessary, to comply to the needs of the business environment at present as well as in the future. Hence, the Starbucks should adopt the learning organization model to emphasize over its marketing strategy along with augmenting its operational effectiveness. The Starbucks previous strategy was found to lack the element of marketing in it. Therefore, it is imperative to bring about change in its strategy by focusing on this area. Besides this, the Starbucks also need to re-define its leadership. In this regard, the leadership of the organization should take up some traits, behavior, or skills as provided by the learning organization model that are essential to employ successful changes within the organization. Reference Rowden, R. W. (2001). The Learning Organization and Strategic Change. S.A.M. Advanced Management Journal, 66, 3, 11-16. Read More