This document summarizes the learning school strategy formation approach. It describes the learning school as conceptualizing strategy as an emergent process rather than a deliberately formulated plan. The learning school views strategies as developing incrementally through a process of trial and error. It also sees organizational learning as important for allowing strategies to emerge through processes like retrospective sensemaking, knowledge creation, and developing dynamic capabilities. The document outlines contributions of the learning school like explaining complex phenomena through simple methods, as well as potential limitations like it providing no discipline and allowing unwanted strategies to emerge.

1. Chapter 7 The Learning School Strategy Formation as an Emergent Process Presented by: Paulette Milord Collins Mkandawire Instructor: Dr. R. Berg B7223 09/20/2008

2. Objectives To understand the process of the learning school and its components as described by Mintzberg et al.(2005). To assess the determinants of the learning school and how they are applied in organizations. To evaluate contribution and limitations of the learning school.

3. Overview Learning School – definition and history Category of Learning (in general) Theory of the Learning School Contributions and Limitations References

4. Learning – Definition & History Process, in which changes in knowledge take place inside an individual (Liepé & Sakalas, 2008) Lindblom, (1959) “The Science of Muddling Through” initiated this school. Other related publications, Edward Wrapp, (1967) “Good Managers Don’t Make Policy Decisions”.

5. The Learning School (History) Cont’d James Brian Quinn, (1980) “Strategies for Change”: Logical Incrementalism signaled the take off of Learning School. Steady flow of literature has followed, and subsequently the mainstream formed a major current of strategic management.

6. Category of Learning (Smith, 1999) Learning as a quantitative increase in knowledge. Learning is acquiring information or ‘knowing a lot’. Learning as memorizing. Learning is storing information that can be reproduced. Learning as acquiring facts, skills, and methods that can be retained and used as necessary. Learning as making sense or abstracting meaning. Learning involves relating parts of the subject matter to each other and to the real world. Learning as interpreting and understanding reality in a different way. Learning involves comprehending the world by reinterpreting knowledge. (quoted in Ramsden 1992: 26)

7. Learning as Formation vs. Formulation (Mintzberg, 2005) Key to Learning School, its foundation in description rather than prescription. How do strategies form as opposed to be formulated? Walter Kiechel (1948:8), only 10% of formulated strategies actually got implemented (dumbells example).

8. Emergence of the Learning School Disjointed Incrementalism - No coordination. Actors get involved in process but hardly coordinated by central authority (government for example). Brought by Charles Lindblom in 1960’s. Logical Incrementalism - James Brian Quinn (1980a, b)Organizations arrive at strategies as integrated conceptions. Planning did not describe how they formulated strategies, incrementalism did but with underlying logic. In Well run organizations, managers proactively guide stream of actions & events incrementally toward conscious strategies. Strategic Venturing - Championning – strategic initiatives – Intrapreneurship – Innovation- hierarchy. Emergent Venturing - Deliberate Strategy (control) vs. Emergent Strategy (Learning) – Letting strategy emerge as things gradually becoming apparent. - Opens doors to strategic learning b/c it acknowledges the org’s capacity to experiment. Retrospective Sense Making - Imposing sense on past experience – Learning by mistakes (Honda) Try things .

9. Three Major Thrusts Related to Org. Learning. Knowledge Creation - Tacit Knowledge, & Explicit Knowledge (See figure). Dynamic Capabilities Strategic depends on learning, & learning depends on capabilities (created or conceived by C K. Prahalad & Gary Hamel) 3 most popular concepts: Core competency- Strategic intent – Stretch & leverage . Chaos Theory - Technique that can be used for studying complex and dynamic systems to reveal patterns of order. (Butterfly illustration) – small steps can generate big actions.

10. Four Modes of Knowledge conversion

11. Crossan, Lane, and White’s Unifying Framework for Org. Learning (1997) Plan/Routines/Norms Diagnostic Systems Rules & Procedures Institutionalizing Shared Understandings Mutual Adjustment Interactive Systems Integrating Language Cognitive Map- Conversation/ Dialogue. Interpreting Experiences, Images, Metaphors Intuiting Indiv. Group Org I/O Process Levels

12. New Directions for Strategic Learning Five disciplines of learning (Senge, 2006) Systems Thinking Mental Models Personal Mastery Shared Vision Team Learning

13. Three Types of Org Learning (Liepe & Sakalas, 2008) Single-loop learning: errors detected and corrected and firms continue with their present policies and goals. Double-loop: in addition to detection and correction errors, organization questions and modifies its existing norms, procedures, policies, and objectives (learning from mistakes). Deutero-learning:

14. Three Types of Org Learning Cont’d Deutero-learning: organization learn how to carry out single-loop learning and Double-loop learning. First two learning types generate the third. Double-loop learning and Deutero-learning are concerned with the why and how to change organization. Single-loop is concerned accepting change without questioning underlying assumptions and beliefs.

15. Critique of the Learning School No Strategy (Muddling Through) Lost Strategy (Org. drift away from established strategies – no discipline- no organization) Wrong Strategy (Learning in incremental way encourages unwanted strategies). Careful of Learning (Purpose of learning – what to learn about? Necessary?

16. Contribution of the Learning School Simple methods enable to explain complex phenomena. Encourages decentralization vs. centralization (no need to have omnipotent leader). Helps us to see strategy as a learning process (individual and collective). Helps organizations create, and come up with novel and interesting strategies (Honda). Larger practice in professional organizations.

17. References Argyris, C. and Schön, D. (1996) Organizational learning II: Theory, method and practice, Reading, Mass: Addison Wesley. Liepė, Ž, & Sakalas, A. (2008). The three-loop learning model appliance in new product development. Engineering Economics, 58 (3), 73-80. Mintzberg H., Lampel, J. (2005). Strategy Safari: A guided tour through the wilds of strategic management . New York: The Free Press. ISBN: 0743270576 Senge, P. (2006) ‘The Fifth Discipline. The art and practice of the learning organization. London: Random House. Smith, M. K. (1999) 'Learning theory', the encyclopedia of informal education , www.infed.org/biblio/b-learn.htm