learning organization of exco

Learning Organization

Subject : Case Study of a Learning Organization

Instructor : Mr. Kabiri

Student : Mohammad hossein Bahmanyar

University : TAFE, Tehran, Iran


Exco is a specialised of manufacturer of products for mining, quarrying and construction industries. It has dominant market share in Australia and growing exports to South East Asia.

About Exco :

The company was formed in early 1980sAnd there are 2 manufacturing sites in Australia And it has 350 employs

Exco is a company that Senge (1990) describesas ‘… continually expanding its capacity to create its future. It is not enough to merelysurvive’

Learning OrganizationExco’s Vision, Mission and Values

Vision: International leaders in the manufacture and application of our products

Mission:Innovation: applying the creative talents of our peopleExcellence: setting higher standardsService: focusing on the needs of our customers

Values:Trust and respect for people Personal growth and leadershipTeamwork with customers, employees and suppliers Ethical and honest behavior in safety environment, health, and businessProfitability with all activities adding value

The company needs to strategically develop and

maximise its market share ?


Organization’s use of strategy as a Learning process is reviewed

Are Exco structures support the attribute Of a Learning organization?

Role of Leadership and teams Learning process for positive outcomes

By Using

The Fifth Discipline

The Mckinsey 7-S

1.The Structure 2.Measurment System3.Management Style 4.Staff Characteristics

5.Distinctive Staff Skills 6.Strategy/Action Plane 7.Shared Values

1.Personal Mastery 2.Mental Models 3.Share Vision 4.Team Learning

5.System Thinking

1st

2nd

3rd

Covey 7 Habits

1. Be Proactive2. Begin with the end in mind3. Put First Things First4. Think win/win5. Seek first to understand, Then be understood6. Synergize7. Sharpen the saw

Synergistic teams+Provide member of an organization learn together

Learning OrganizationCovey 7 Habits:

This is the ability to control one's environment, rather than have it control you, as is so often the case. Self determination, choice, and the power to decide response to stimulus, conditions and circumstances

1.Be Proactive

2.Being with the end in mindCovey 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 avoid distractions and become more productive and successful.

3.Put first think firstCovey 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; habit 3 is the second, or physical creation

Covey calls this the habit of interpersonal leadership, necessary because achievements are largely dependent on co-operative efforts with others. He says that win-win is based on the assumption that there is plenty for everyone, and that success follows a co-operative approach more naturally than the confrontation of win-or-lose.

4.Think Win-Win

5. Seek first to understand, Then be understoodOne 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 for developing and maintaining positive relationships in all aspects of life.

Covey says this is the habit of creative co-operation - the principle that the whole is greater than the sum of its parts, which implicitly lays down the challenge to see the good and potential in the other person's contribution.

6.Synergize

7.Sharpen the sawThis 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, which all need feeding and developing.

Learning OrganizationThe process of building a learning organization unleashes individual creativity, andfosters collective learning which is crucial for encouraging, and developing innovation andrapid responsiveness to global competition

learning organization iscontinually getting ‘smarter’ because learning is planned, systematic and in alignment withthe organization's strategic goals

The organization structure has been flattened with an emphasis on cross-functional teams

Competitive environment in 1990

Change was necessary : Managers and other parts and individuals…

For Survive :

Share their knowledge with others by Teams and teamwork

Learning Strategy for present and future

Focus on one aspect of organizational change Dynamic and iterative process – in capacity in change and redesign continually

Exco has engaged in a self-design strategy provide

Involve :Organizational structure, Human resource practices and technology.


Element

Shared Values

Management Style

Strategy Plan

Structure

Staff Characteristic

Distinctive Staff Skills

Measurement System

Teams


Excellence Organizational renewal

FacilitatorCoach

Everyone is consulted Learning map

Flat structure Dynamic networks

People who learn Mistakes tolerated as part of

learning

Generative learning

Both financial and non-financial measures

Cross functional teams

Evidence at Exco

Yes Yes

Yes Yes-problematic

Consultation growing Evolving

Yes Evolving

Yes Yes

LimitedYesYes

Exco as a learning organization

Learning OrganizationVision and Mission developed by consultation with employees

Particular emphasis on Values

80% of employees were exposed to the training of Covey principles

People

Customers

Growth

TechnologyContinuous

improvement

S.H. & E.

Value Adding

Relations

Leadership

Vision

Benchmarking

Measures of Performance

CSFs

The Exco Planning Process

Opinion-Climate Survey every 18 months

Access to company performance via a notice-board update every monts

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.

Competition within the company to find the best mission statement

Exco’s mission emphasises learning principles of innovation and excellence

Mission awards

Critical Success Factors = moving the company towards its vision.The CSFs represent the core competition of Exco.Each CSF is associated with a number of key performance measure are both financial and nonfinancial.

Fostering Senge’s self mastery


0 10 20 30 40 50 60 70 80 90

Leadership

Involvement

Work perf.

Environment

Reward

Teamwork

Learning

%

Year1

Year2

Result of the Exco Employee Opinion-Climate Survey

Determine the extent to which people ‘buy in’ to the vision and mission, and to measure whether there iscongruence between organisational valuesand the beliefs of individual employees


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 and vision.

the establishment of a working environment attractive to employees. taking action to enable employees to develop their full potential. the commitment to developing effective leadership.

Continuous Improvement:We must entrench a culture of continuous improvement in everything we do.

the identification of improvement opportunities by measuring and analysing work processes enabling all employees to play an effective role in continuous improvement. benchmarking key work processes.

Covey 7 habits Program : Fostering Senge’s self mastery . Helping people to cope with significant organization change .

For managers a coaching skills program is being introduced

This CFS is a driver for cross-functional teamwork

CSFs :


Exco Management Team

Sa

fety

Ac

coun

ting

H

uman

Res

ourc

e

R

& D

Q

ualit

y As

sura

nce

Bus

ines

s D

evel

opm

ent

Pu

rcha

sing

Cross Functional Production Team

Exco has been flattened by Cross-Functional teams

Solve specific problems together

Collective thinking skills

Use as collective experience and creativity of individual

Long-standing problems solved

Individual teams plans come together and the management team consolidate them

Business strategy occurs on annual basis

Encourage people to work together

Learning OrganizationExco has many characteristics of an evolving Learning Organization:

Encouraging employees participation in the building of a shared vision, mission and valueStatement: employees ‘buy- in’ to this process viaFacilitating Personal Mastery :

around use of Covey 7-habits employees cope with the changes

Encouraging and developing team work: fundamental change has resulted in development of a team-based structure teamwork reinforced via the performance managementFlattening the organizational structure: more employees contribute to development of the business strategy individual teams represent strategies and plans then management develop them

Critical Success Factors (CSF) and Key performance measures:Functional teams are able to determine the impact of their activities on the successof the team and hence the overall business.

The Exco vision, mission, and values encourage a process of personal commitment on the partof the employees. It also develops a collective sense of identity with the organization and its mission.

Competition to find the best missionExtensive consultation with staffAnnual mission awards

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 circumstances demand’

Learning OrganizationLearning Structure and Systems at Exco

All parts of an organization are effect in othersAn organization with highly mechanistic, formal decision making centralised = Learning not developAn organic organization by communication can make a Learning Organization

Sharing knowledge fundamental aspect of the Learning Organization.Why employees share their knowledge ? Encourage and trust

5 ways of making trust in an organization: communicating openly and honestly with employee, without distorting information showing confidence in employees abilities, treating them as skilled and competent listening to and valuing what employees say, even though management may not agree keeping promises and commitments cooperating with staff and looking for ways that each could help the other

Bureaucratic system restricts individual autonomy and decision making.Organization structure is flatterAnd Manager coaches not directs employees.

In Exco

A new business computer system

Every one has Access to critical information .Job information. New information. (Teams and idividuals)

Innovation and experimentation is also an integral part of the learning organization becauseinstead of waiting for a problem to occur, a learning process of continuous improvement is encouraged. Failure is parts of learning if same mistakes are not repeated.

A comprehensive training is underway to ensure that all teams and individuals are able to use.


Element

Organizational structure

Availability of information

Trust culture

Communication

Innovation

Managers style

Learning systems

Characteristic of a learning Org.

Flat hierarchy, decetralised ,

Dynamic network

System in place to make information

freely available

High level of trust Self mastery

practised

Decentralised communication

processes

Innovation and risk taking encouraged

FacilitatorCoaching style

Continual learning and double loop

learning

Evidence of Characteristic of a

learning Org at Exco

Flat structure. Cross functional teams Autonomous

team leadersBusiness

computer system Extensive use of

e-mail

Covey 7-habits practised

Open communication process

Flat structureInnovation part of mission

Mission awards process Dynamic

cross-functional teams Opportunity for

Improvement System ( OPI )

Facilitate cross-functional team processes

Coaching skills training

Continual learning encouraged. 12-step process for

team work and shared vision

Covey program supports Senge’s 5 disciplines

learning process developing

Characteristics of the Exco Organizational Structure as a learning Organization

This has happened after 4 years

Learning OrganizationLeadership, Teams and the Learning processes in Exco

Traditional Model

LEARNING MODEL

Lead

ersh

ip Charismatic, individual experiences and learning

Facilitator of learning, encouraging, motivating to learn themselves

Leader is a team player mentoring and coaching role

Not planning and controlling role

Learning OrganizationCommunity of leaders by Senge :

local line leaders/managers with significant bottom- line responsibility, such as business unit managers, who introduce, and implement ideas.

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.

internal networkers — often these employees have no formal authority, however, they move through the organization fostering commitment to new ideas and practices.

The community of leaders comprises of :

Exco leadership model based on Covey’s Principle-Centered Leadership


STRATEGY

STRUCTURE SYSTEMS

PRINCIPLESShared Mission,

Vision and Values

STYLE SKILLSPEOPLE

SELF

MANAGERIAL

INTERPERSONAL

PERSONAL

EMPOWERMENTTRUST

TRUSTWORTHY

Customer & OtherStakeholder Needs

THE PRINCIPLE-CECTER LEADERSHIP PARADIGM N

Learning OrganizationThe PCL Model states that the role of leader in to:

create an exciting vision for the organization;

achieve and maintain a wise and renewing balance between professional and personal areas of life;

empower and unify everyone in an organization around a shared vision;

create team spirit and harmony among disparate factions in the organization; maintain stability while encouraging change, flexibility, and continuous improvement;

turn a company mission statement into a collective and personal constitution;

cultivate trustworthiness, which is foundational to trust in business relationships


Three broad typesof teams in Exco

1. Site based production teams2. Cross functional business teams3. Project management teams

Self-directed production work teams

Multi-Skilled teams are thyself Leader

A management Layer has eliminatedInstead empower the operators

A consultant hired Implementation the production teams

Training session were held

Many were comfortable with existing working

A permanent facilitator assist the team leaders

To plane their workDeal with performance and conflictsProvide on-going training teamworks

ProductionTeams

Learning OrganizationProject 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 effectiveness of the next project.

Exco is trying to become a knowledge-creating company whose business is continuous innovation

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 business.

They are, therefore, learning how to learn, rather than simply receiving training in a particular area

Learning OrganizationManagers 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, experience and learning

Able to self-develop individually and learn from colleagues

The skills they develop

Fact findingDiagnosisCreativityDecision makingNegotiating

To ensure that managers have the skills for these new roles a coaching skills programIs being introduced .


Step1 • Define the team’s boundaries

Step2• Determine how the team will work within

the boundaries

Step3 • Explore how the team will manage information

Step4 •Focus on team leadership issues

Step5 •Investigate individual and team motivators

Step6 •Establish the skills – technical and teamwork required for success

Step7 •Work out how the team will manage equipment and technology

Step8 •Work out how the team will manage confusion and tension

Step9 •Invent a team maturity matrix to plot team growth

Step10 •Learn how to hold team meetings

Step11 •Examine external boundaries and how the team interacts with other teams

Step12 •Develop ways to monitor and measure team performance

The Exco 12-Step Team Development Process

Management teamsimplemented this to ensure ongoing Support of both cross-functional business project and self-directedproduction teams


The objective of the Exco 12-Step Development Process is to ensure that teams have :

clear, and well understood, purpose/mission (a reason for being a team); clear, realistic and achievable goals; high performance standards set by the team; ability to learn from experience; effective communications of ideas and feelings; the team takes control of their work quality — they can, and do, improve things.

Experience with the Exco 12-Step Development Process shows that although it has beeneffective in establishing team purposes, goals and alignment, teams have not been able tomaster team learning processes

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 highlyeffective learning organization

Learning OrganizationBohlin & Brenner have identified practices which support the team learning :

generating shared awareness. Continually assimilating internal and external information about problems and opportunities; creating a common understanding. Converge on a common understanding of the key problems and opportunities and openly discuss options for action, using common tools; producing aligned action. Ensuring that plans and actions are aligned with the organization’s goals; performing joint review. In a spirit of openness measure and review previous results and look for learning on how to do it better in the future; conducting collective reflection. Reflect on past and present activities and seek improvements in learning processes.


Learning practice profile

Creating shared awareness

Developing common understanding

Taking aligned action

Conducting joint review

Conducting collective reflection

Presence of specific learning practices

PerceivedCurrent position

Desired futureposition

Bohlin & Brenner have developed New tool to summarise learning practices

the need to think insightfully about complex issues (many minds are more intelligent than a single mind); the need for innovative coordinated action; understanding that most outcomes are achieved in collaboration with other teams and a learning team fosters other learning teams and spreads the practices and skills of learning teams more widely.

Team learning has three critical dimensions by Senge:

Analysis of the team strengths and weakness

Guide the development of strategies to improve the team learning

Learning OrganizationIt 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 organization.

This includes holding a series of group and individual interviews to determine how four key relationships are managed ,company—wide, manager-subordinate , peer , and interdepartmentally

The same process is used to consider how six managerial tasksare handled within the organization. These tasks include innovating, decision-making, communicating, organizing, monitoring, and appraising/rewarding.

Learning OrganizationConclusions:

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 in team skills.Mental Models — this aspects is less developed, but is being promoted through training in team skills.Systems Thinking — this aspect is the least developed of all the attributes.

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 is great skill variability in terms of coaching and mentoring amongst the middle and senior management group. The company is trying to address this issue, with the coaching skills program.


Thank you

learning organization of exco

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