Learning

Organization

Subject :
Case Study of a Learning
Organization
Instruct
or :
Mr.
Student :
Mohammad hossein
Bahmanyar
University : TAFE,
Tehran, Iran
 Learning
Organization
About
ExcoExco
: is a specialised of manufacturer of products
for mining,
quarrying and construction industries.
It has dominant market share in Australia and
growing exports
The company was formed in early
1980s
And there are 2 manufacturing sites in
Australia

Exco is a company that Senge (1990) describes

as ‘… continually expanding its capacity to create its future. It
is not enough to merely
survive’
 Learning
Organization
Exco’s Vision, Mission and
Values
Vision:
International leaders in the manufacture and
application of our products
Mission:
Innovation: applying the creative
talents of our people
Excellence: setting higher standards
Service: focusing on the needs of our
Values:
Trust and respect for people
Personal growth and leadership
Teamwork with customers, employees and suppliers
Ethical and honest behavior in safety environment,
health, and business
Profitability with all activities adding value
The company needs to

?
strategically develop
and
maximise its market share
 Learning
Organization
1.Personal Mastery 2.Mental
Models
3.Share Vision 4.Team
Learning
1
st 1. Be Proactive
2. Begin with the end in
mind
3. Put First Things First
2n 4. Think win/win
d 5. Seek first to
understand,
Then be understood
3r 6. Synergize
d
1.The Structure 2.Measurment System
3.Management Style 4.Staff
+Synergistic
teams
Provide member of an
Characteristics organization learn
5.Distinctive Staff Skills together
6.Strategy/Action Plane
 Learning
Organization
Covey 7
1.BeHabits:
This is the ability to control one's environment, rather than have it
Proactive
control you,
as is so often the case. Self determination, choice, and the power to
2.Being with the end
decide response
inCovey
mind calls this the habit of personal leadership – leading oneself that is, towards what you
consider your aims.
By developing the habit of concentrating on relevant activities you will build a platform to
3.Put first
avoid distractions and
Covey first
think calls this the habit of personal management. This is about organizing and
implementing
activities in line with the aims established in habit 2. Covey says that habit 2 is the
first, or mental creation;
4.Think
Covey calls this the habit of interpersonal leadership, necessary because achievements are
Win-Win
largely dependent
on co-operative efforts with others. He says that win-win is based on the assumption that
5.there
Seek firstforto understand, Then
is plenty
beOne
understood
of the great maxims of the modern age. This is Covey's habit of communication, and it's
extremely powerful.
Covey helps to explain this in his simple analogy 'diagnose before you prescribe'. Simple and
effective, and essential
6.Syner
Covey says this is the habit of creative co-operation - the principle that the whole is greater
gize
than the sum of its parts,
which implicitly lays down the challenge to see the good and potential in the other person's
7.Sharpen
the
This saw
is the habit of self renewal, says Covey, and it necessarily surrounds all the other habits,
enabling and encouraging
them to happen and grow. Covey interprets the self into four parts: the spiritual, mental, physical
and the social/emotional,
 Learning
Organization
The process of building a learning organization unleashes
individual creativity, and
fosters collective learning which is crucial for encouraging, and
developing innovation and
learning organization is The organization structure has
continually getting been flattened
‘smarter’ because with an emphasis on cross-
learning is planned,
systematic and in
alignment with Competitive
For environment in 1990
Survive :
Change was necessary : Managers and other
parts and individuals…
Share their knowledge
with others Involve :
by Teams and teamwork Organizational
Learning Strategy for structure,
present and future Human resource
Exco has engaged in a self- provid practices
design strategy eDynamic and iterative process
Focus on one aspect of – in capacity
organizational change in change and redesign
Learning
Organization
Exco as a learning
organization
 Learning
Organization
Vision and Mission
developed
The Exco Planning
Process
by consultation with
Competition within the
company CS
to find the best mission
Particular emphasis on
Values
Fs
80% of employees were
exposed
to the training of Covey
Fostering Senge’s self
mastery
Opinion-Climate
Survey
every 18 months
Access to company
performance via
a notice-board update every
In 1994 the organizational renewal
was started in Exco with the
implementation of a flatter
organization.
Encouraging individual teams to
develop their own purpose that align
with the company vision.
Exco’s mission emphasises Critical Success Factors = moving the company
learning towards
The CSFsits vision. the core
represent
principles of innovation and competition
Each of Exco.with a number of
CSF is associated
Mission key
 Learning
Organization
Result of the Exco Employee Opinion-
Climate Survey
Leaders
hip

Involveme
nt Determine the
extent
Work to which people
‘buy in’ to the
perf.
vision
Environm and mission, and
ent to
measure whether
Rewa there is
rd congruence
between
Teamw
ork

Learni
ng
0 10 20 30 40 50 60
70 80 90 %
 Learning
Organization
C
SFs
Two CSFs in particular are relevant to the evolution of Exco as a learning
organization, namely:
CSF 1: People
CFS 5: Continuous Improvement
People:
We must attract, motivate and develop talented people who are committed to
our values
v the and vision.
establishment of a working environment attractive
to employees.
v taking action to enable employees to develop their full
potential.
Covey 7 habits Program :
Fostering Senge’s self mastery . For managers a
Helping people to cope with significant coaching skills
organization change . program is being
Continuous Improvement:
We must entrench a culture of continuous improvement in
everything we do.
v the identification of improvement opportunities by measuring and
analysing
v enablingwork processes to play an effective role in continuous
all employees
improvement.
v benchmarking key work processes.
This CFS is a driver for cross-functional
teamwork
 Learning
Organization
Exco has been flattened by Cross-
Encourage people to work Functional teams
together
Collective thinking
Exco Management Team
skills
Use as collective
experience
and creativity of
Cross Functional Production

Business Development
Solve specific
problems
together
Team

Quality Assurance
Human Resource
Long-standing
problems solved
Accounting

Purchasing
Business strategy
occurs
on annual basis
Individual teams
Safety

plans
come together and R&D
the management
team
 Learning
Organization
Exco has many characteristics of an evolving
Learning Organization:
The Exco vision, mission, and values encourage a process of personal
commitment on the part
of the employees. It also develops a collective sense of identity with the
Encouraging employees participation in the building of a shared vision, mission
and value Competition to find the best
Statement: mission
employees
Facilitating ‘buy- in’ to this process
Personal via
Extensive consultation with
staff
around: use of Covey 7-
Mastery
habits
employees and
Encouraging copedeveloping
with the team work:
fundamental change has resulted in development of a team-
based structure
teamwork
Flattening thereinforced via the
organizational performance management
structure:
more employees contribute to development of the business
strategy
individual teams represent strategies and plans then
Critical Success Factors (CSF) and Key
performance measures:
Functional teams are able to determine the impact of their
activities on the success
of the team and hence the overall business.
Exco has tried to use this process as ‘… a dynamic and iterative process
aimed at providing the organization
with a built–in capacity to change and redesign themselves continually as the
 Learning
Organization
Learning Structure and
Systems
All parts at Exco
of an organization are effect
An organization with highly mechanistic, formal decision making centralised =
in others
An organic
Learning organization
not develop by communication can make a
Learning Organization
Sharing knowledge fundamental aspect of the
Learning
Why Organization.
employees share their Encourage and
knowledge
5 ways of making? trust in an trust
organization:
v communicating openly and honestly with employee, without distorting
information
v showing confidence in employees abilities, treating them as skilled
and competent
v listening to and valuing what employees say, even though
management may not agree
In Innovation and experimentation is also an integral part of the
Exco learning organization because
instead of waiting for a is
Failure problem
parts oftolearning
occur, aiflearning process of
same mistakes
continuous improvement is
are not repeated.
Bureaucratic system restricts individual Every one has
autonomy and Access to critical
A new
decision making. information .
business
Organization structure is flatter Job information.
computer
And Manager coaches not directs New information.
A comprehensive training is underway to (Teams and
ensure that all
teams and individuals are able to use.
Learning
Organization
Characteristics of the Exco Organizational Structure as a
learning Organization

This has
happened
after 4 years
 Learning
Organization
Leadership, Teams and the Learning
processes in Exco

Tradition
Charismatic, individual experiences
Leaders al Model
and learning
hip LEARNING
MODEL
Facilitator of learning, encouraging, motivating
to learn themselves

mentoring and
Leader is a team
coaching role
player Not planning and
controlling role
 Learning
Organization
Community of leaders
by Senge :
The community of leaders
comprises of :
v local line leaders/managers with significant bottom- line
responsibility, such as
business unit managers, who introduce, and implement
ideas.

v executive top-level leaders/managers who mentor the

local-line leaders, and who
influence cultural change by setting an example by
changing their own behaviour
and that of the top- level teams.

Exco leadership model based on Covey’s Principle-

Centered Leadership
 Learning
Organization
THE PRINCIPLE-CECTER
LEADERSHIP PARADIGM
N
Customer &
Other
Stakeholder
STRATE
GY
STRUCTU SYSTE
RE MS
PRINCIPL
ES
Shared
Mission,
Vision and
Values

AG ERI S SKIL EMPOWERME

M A N
TYL PEOP LS NT
AL ERSO T
INTERP LE
NAPL ERSON S TRRUUSSTWORT
ELF HYT
AL
 Learning
Organization
The PCL Model states that the role
of leader in to:

v create an exciting vision for the organization;

v achieve and maintain a wise and renewing balance

between professional and
personal areas of life;

vempower and unify everyone in an organization around a

shared vision;

vcreate team spirit and harmony among disparate factions

in the organization;

vmaintain stability while encouraging change, flexibility, and

continuous
improvement;
 Learning
Organization
Three broad 1. Site based production
types teams
of teams in 2. Cross functional business
teams
Self-directedproduction A management Layer has
work teams eliminated
Multi-Skilled teams are Instead empower the
thyself Leader

A consultant Implementation the production

hired teamsMany were comfortable with existing
Product working
ion Training session were
Teams held
A permanent To plane their work
facilitator Deal with performance and
assist the team conflicts
Provide on-going training
 Learning
Organization
Project
Teams Have been successful
practically
At the end of each project a learning project is set up to review the
effectiveness of
the project and to lock in the organizational learning which is
used to improve the

Opportunities for Improvement

System (OFIs)

Encouraging experimentation and empowerment of the

individuals and teams.
individuals and teams are able to participate in the ongoing evaluation
and change of any aspect
of the
They business.
are, therefore, learning how to learn, rather than simply receiving
training in a particular area

Exco is trying to become a knowledge-creating company whose

business is continuous innovation
 Learning
Organization
Managers in the team-based
organization

Role of them has changed form one of control to

facilitation and coaching
Facilitate for cross-functional teams , coach and
mentors to individual
Action learning : describes manager roles
in the process of
linking action,
Able to self-develop individually and learn
from colleagues
Fact finding
To ensure that
Diagnosis
The skills Creativity
managers
have the skills for
they Decision these new
develop making roles a coaching skills
Negotiating
 Learning
Organization
The Exco 12-Step Team
Development Process

Management
teams
implemented this
to ensure
ongoing
Support of both
cross-functional
business project
and
 Learning
Organization
The objective of the Exco 12-Step Development Process is to
ensure that teams have :
vclear, and well understood, purpose/mission (a reason for being a
team);
vclear, realistic and achievable goals;
vhigh performance standards set by the team;
vability to learn from experience;
veffective communications of ideas and feelings;
vthe team takes control of their work quality — they can, and do,
Experience with the Exco 12-Step Development Process shows
that although it has been
effective in establishing team purposes, goals and alignment,
teams have not been able to
Team learning and innovation, springing from collective
learning, has yet to develop
It is in the area of team learning that Exco has the most work to do
in order to become a highly
effective learning organization
 Learning
Organization
Bohlin& Brenner have identified practices which support
the team learning :

vgenerating shared awareness. Continually assimilating

internal and external
information about problems and opportunities;
vcreating a common understanding. Converge on a common
understanding of the key
problems and opportunities and openly discuss options for
action, using common
tools;
vproducing aligned action. Ensuring that plans and actions are
aligned with the
organization’s goals;
vperforming joint review. In a spirit of openness measure and
 Learning
Organization
Bohlin & Brenner have developed New tool to summarise
learning practices

Analysis of the
team
strengths and
Guide the
development of
strategies to improve
the

Perceived Desired
Current future
position position
Team learning has three critical
v the need by
dimensions to Senge:
think insightfully about complex issues (many
minds are more
intelligent than a single mind);
vthe need for innovative coordinated action;
vunderstanding that most outcomes are achieved in
collaboration with other teams
and a learning team fosters other learning teams and
 Learning
Organization
It is in this area that Exco needs an
intervention strategy

Exco should use the behavioural approach described by

Bohlin and Brenner
This approach looks at how tasks are
managed and how the
relationships are managed within the
This includes holding a series of group and individual
interviews to determine how
four key relationships are managed ,company—wide,
manager-subordinate , peer ,

The same process is used to consider how six managerial tasks

are handled within the organization. These tasks include innovating,
decision-making, communicating, organizing, monitoring, and
appraising/rewarding.
 Learning
Organization
Conclusi
ons:
Exco exhibits many of the attributes of a learning organization,
namely:

Personal mastery — providing people with new life skills through

the Covey
7-habits program.
Shared Vision — the deployment of the company vision, mission
and values is
enthusiastically promoted by management, and employee
support is high
Team Learning — an organization structure which promotes
teamwork and training
Exco has done a great deal to establish a structure, system, and culture
to encourage an ongoing
learning process. From the data gathered it appears that the company
has been less effective at
encouraging teams and individuals to use team learning. The main
reason for this is because there
Learning
Organization

Thank
you