2Some Questions? Why do so many business strategies fail? Why do so many others fail to produce lasting results? Why do many businesses suffer from periodic crises andfluctuating sales, earnings, and morale? Why do some firms grow while others stagnate? How doonce-dominant firms lose their competitive edge? And how can a firm identify and design high-leveragepolicies, policies that are not thwarted by unanticipatedside effects? …?
3What the Change does! Accelerating economic, technological, social,and environmental change challengemanagers to learn at increasing rates. We must increasingly learn how to designand manage complex systems with multiplefeedback effects, long time delays, andnonlinear responses to our decisions .
4Learning Effective learning in such environmentsrequires methods to represent and assesssuch dynamic complexity and toolsmanagers can use to accelerate learningthroughout an organization
5Learning is a Must! We must increasingly learn how to designand manage complex systems withmultiple feedback effects, long time delays,and nonlinear responses to our decisions. Effective learning requires methods andtools which people can use to acceleratelearning.
6Extraordinary Organizations… Are those that engage people’scommitment and capacity to learn at alllevels in the organization Will recognize that the only trulysustainable competitive advantage is therate at which organizations learn Nothing compares to the exhilaration thatcomes from working within learning orgs.
12Learning Organization "Organisations where people continually expandtheir capacity to create the results they trulydesire, where new and expansive patterns ofthinking are nurtured, where collective aspirationis set free, and where people are continuallylearning to learn together"
Definition DEFINITION OF SYSTEM THEORY:System theory is basically concerned withproblems of relationships, of structures,and of interdependence, rather than withthe constant attributes of object (Katz andKahn, 1966).
Characteristics Haas & Drabek (1973) described eightcharacteristics of organizations as opensystems: Organizations are systems within systems The systems are open, they cannot survive inisolation from their environment Open systems follow the principle ofequifinality, i.e., the same final state can bereached from different starting positions indifferent ways
Characteristics (continued) Open systems have feedback and regulatorymechanisms that allow adaptive responses toenvironmental change Open systems should be viewed as patternedsets of events Open systems have boundaries thatdifferentiate them from various environments,the boundaries vary in permeability, i.e. whatand how can get through, and the situation athand
Characteristics (continued) System interaction, internally and externally,reflects differing levels of control andautonomy The open systems perspective is notreductionistic – you cannot explain whathappens in the organization by focusing onindividual parts
Critique One of the criticisms of the open systemsperspective is that the concepts are difficultto operationally define (Haas & Drabek,1973) Peter M. Senge (2006) attempts to addressthis criticism in his 2006 edition of Thefifth discipline
The Fifth Discipline Senge (2006) used Katz & Kahn’s (1966)definition and Hass & Drabek’ s (1973)characteristics in his work on the art andpractice of the learning organization. He argues that there are five coredisciplines necessary for a learningorganization: personal mastery, mentalmodels, shared visions, team learning, andsystems thinking
19Disciplines of the Learning Organization Systems Thinking Personal Mastery Mental Models Shared Vision Team Learning
Personal Mastery “Personal mastery” is the phrase we use forthe discipline of personal growth andlearning. People with high levels ofpersonal mastery are continually expandingtheir ability to create the results in life thatthey truly seek (Senge, 2006, p. 131)
Underlying Movements Continually clarifying what is important to you. Continually learning how to see current realitymore clearly. Commitment to truth, “it means a relentlesswillingness to root out the ways we limit ordeceive ourselves from seeing what is, and tocontinually challenge our theories of why thingsare the way they are” (Senge, 2006, p. 148).
Personal Mastery & SystemsThinking “… integrating reason and intuition;continually seeing more of ourconnectedness to the world; compassion;and commitment to the whole” (Senge,2006, p. 156).
Mental Models Our mental models determine what we seeand what we do not see. They are thesymbols that we use to mentally processthe environment in which we function.
Mental Model Tools & Skills Pay attention to the distinction betweenespoused theories (what we say) andtheories-in-use (the implied theory in whatwe do) Recognizing leaps of abstraction –attribution Balancing inquiry and advocacy Pay attention to what we think, but do notsay (Senge, 2006)
Systems Thinking Understand the patterns of behavior in yourorganization. Figure out how to gain leverage/influenceof the patterns in your organization
References Von Bertalanffy, L. (1968). Passages fromGeneral Systems Theory. Retrieved fromhttp://www.panarchy.org/vonbertalanffy/system Haas, J. E. and Drabek, T. E. (1973).Complex organizations: A sociologicalperspective. New York, NY: MacMillan.
References (continued) Katz, D. and Kahn, R. L. 1966. The socialpsychology of organizations. New York,NY: Wiley. Senge, P. M. (2006). The fifth discipline:The art and practice of the learningorganization. New York, NY: Doubleday