The document discusses the organizational learning cycle which involves four steps: 1) widely generating information from internal experiments and external multiple sources on a continuous basis; 2) integrating new and local information into the organizational context by disseminating accurate and timely information; 3) collectively interpreting information through organizational dialogue and interaction; and 4) giving authority to take responsible action on the interpreted meaning by exercising control at a local level with no penalty for risk.

1. Widespread Generation of InformationIntegrate new/local information into the organizational contextAuthority to take responsible action on the interpreted meaningThe Organizational Learning CycleCollectively interpret information

2. Widespread Generation of InformationExternal* Collected by primary users* Collected from multiple sources* Continuous collectionInternal* Created by experiment “what if?”* Data collection designed into action* Analysis on mistakes and successes* Checkpoint data for self-correction* R&D conducted by line

3. Integrate New / Local Information into the Organizational Context* Disseminate accurate information* Timely dissemination* Provide complete information* Unimpeded flow vs. batched information* Reward for accurate reporting rather than expected information* Translate and /or format for use* Multi-skilling and multi-functioning* Integrating staff positions into line

4. Collectively interpret information* Organizational dialogue* Proximity to others with varying interpretations* Frequency of interaction* Availability of multiple perspectives* Egalitarian conditions* Organization limited in size* Everything open to questioning

5. Authority to take responsible action on the interpreted meaning* Control at the local level* Minimum critical specifications* No penalty for risk* Profit sharing