How to create a learning organisation

A Learning Organisation is one that is constantly improving itself and adapting to changing market conditions. In the 21st century only Learning Organisations will survive and thrive. How effectively each Learning Organisation learns will define which of that group survives.

The ability of a company to quickly adapt will be a key differentiator between the winners and losers of tomorrow’s businesses. But change is hard for any organisation and us as individuals so learning how to create a Learning Organisation has to-date not been straight forward.

Peter M. Senge coined the term “The Learning Organisation” in his book The Fifth Discipline.

In the Fifth Discipline, he proposed Learning Organisations had these 5 characteristics:

1. Systems Thinking

2. You can think of a company as a living thing, made up of people as it is. The term Organisation contains the word “organ” which comes from the Greek Organon, meaning ‘organ’.

3. Personal Mastery

4. The capability for each employee to continuously improve their expertise in their respective roles.

5. Mental Model

6. This relates to the way we individually see the world, the organisation and ourselves. Positive behaviours and attitudes are needed to create a culture that promotes learning.

7. Shared Vision

8. A shared vision between the staff, managers, directors and owners on a personal and organisational level.

9. Team Learning

10. This is the ability of an organisation to easily share knowledge between staff, departments and functions.
    

Command and Control Organisation

To create a learning organisation we need to invert the organisational pyramid as a top-down, command and control model does not facilitate trust, openness or the sharing of information. It is a very transactional way of organising things with tightly defined job descriptions, roles, goals and targets which only serves to constrain learning.

This is the clockwork view of running a business, a very mechanistic way of doing things. You might say 100 years ago or even 50 years ago it was the only way to run a business, to keep control. It was just easier to tell people what to do and when there is little competition and lots of demand, it didn’t much matter that employees didn’t much like it. It was the price they paid for having a job and an income.

This model goes back to Frederick Winslow Taylor who is 1911 published his “The Principles of Scientific Management” on industrial organisation and decision theory. Essentially he believed work should be broken into small, very efficient work packages and the worker only got paid his full salary only if a good job was done, as defined by the manager.

At that time the vast majority of the workers were manual workers with very few people in charge. Manual workers weren’t expected to design the process, just do the process. The thinking was that they were only motivated by their salary which they then only got if they followed the given process quickly and accurately.

Now we have the Knowledge Worker, a term first used by Peter Drucker in 1966. The knowledge worker is rewarded for the use of their brains more than they are their hands. Knowledge workers don’t need or want to be told what to do, but instead helped and supported in their work to do it more effectively.

This is another reason that the top-down, command and control organisational structure is yesterday’s organisational structure. From this point forward we can consider everybody to be a “knowledge worker”, even in a manual role as most people understand we all like to feel involved with what we do, not just doing it.

How Does an Organisational Structure Create a Learning Environment?

Organisational structure plays a crucial role in creating a learning environment within an organisation. An organisational structure that emphasises communication, knowledge sharing, learning opportunities, empowerment, and adaptability can create a conducive learning environment. By providing the necessary resources, support, and culture, organisations can foster a continuous learning mindset, leading to individual and collective growth.

Here are some ways in which organisational structure can contribute to fostering a learning environment:

1. Clear Communication Channels: A well-defined organisational structure provides clear communication channels and reporting lines. This clarity ensures that information, knowledge, and feedback flow efficiently throughout the organisation. When communication is transparent and accessible, employees can easily share ideas, seek feedback, and learn from one another.

2. Knowledge Sharing: An effective organisational structure encourages knowledge sharing among employees. This can be achieved through various mechanisms such as regular team meetings, cross-functional collaborations, mentorship programs, and communities of practice. By sharing their expertise, experiences, and insights, employees can learn from one another and develop new skills.

3. Learning Opportunities: A learning-focused organisational structure provides formal and informal learning opportunities. It may include training programs, workshops, conferences, webinars, and other learning initiatives. By investing in employee development and providing resources for learning, organisations signal the importance of continuous learning and create an environment where individuals are encouraged to expand their knowledge and skills.

4. Empowerment and Autonomy: An organisational structure that promotes empowerment and autonomy enables employees to take ownership of their learning and growth. When individuals have the freedom to make decisions, experiment, and learn from their experiences, they become more engaged and motivated. This can lead to a culture of innovation and continuous improvement.

5. Learning from Mistakes: A learning environment encourages employees to view mistakes as opportunities for growth rather than failures. In a well-designed organisational structure, individuals are given the space to take calculated risks, learn from their mistakes, and share those lessons with others. This helps to foster a culture of learning, resilience, and adaptability.

6. Agile and Adaptive Structure: Organisations that embrace an agile and adaptive structure are better equipped to respond to changes in the business environment. This flexibility allows them to quickly learn and adapt to new challenges, market trends, and technological advancements. By promoting a culture of experimentation and learning, employees are encouraged to explore new ideas, test hypotheses, and continuously improve their work processes.

How to Create a Learning Organisation

In the command and control organisation the vision is just about where you’re heading, the destination. Employees are told what to think and believe, but if they want to know why they are doing something, the bigger picture, the vision gives them that.

In the Learning Organisation, you need more in the Vision:

1. Where are we heading, what is our destination?

2. Where are we now?

3. What do we believe, who are we?
   

It’s advantageous to put this all into the Vision statement. When this isn’t the case, you lose focus, something you can’t afford to have in a Learning Organisation. Core values, behaviours, the vision and mission statements get diluted and forgotten. So whenever the Vision statement comes up, you remind yourself of who you are, where you are going and why you will get there. This is much more useful than just where you’re going.

To be an effective organisation there needs to be alignment across all staff, roles, functions and departments to provide a clear sense of direction and purpose. So a common understanding of the challenges in front of us today, where the company is heading and why we can get there and who we are, is key. Without the top-down direction, only the values and beliefs of the organisation hold it together. These values and beliefs create the behaviours required of everybody to achieve the desired business goals.

Awardaroo can help your company transform into a learning organisation. We’ll help you change your organisational structure from the traditional command and control and improve your company culture, to create a happier, more productive and profitable workplace. Find out more about our business improvement programme.