Today’s post was stimulated by a great article in the July/August 2008 Harvard Business Review, The Competitive Imperative of Learning, where Professor Amy Edmonson of Harvard Business School outlines the differences between organizations that focus on execution as efficiency—doing things better and faster than your competition versus execution as learning—focusing on learning and adapting faster.

In brief, Professor Edmonson compares and contrasts the approaches used in the traditional industrial age model of motivation and performance evaluation processes versus those required for today’s knowledge-worker dominated organizations.  The approaches required for success in the two models are dramatically different.

In the Execution as Efficiency model, Professor Edmonson indicates that leaders provide answers, employees follow directions and optimal work processes are designed and set up in advance.  In the Execution as Learning model, leaders set direction and articulate the mission, employees discover the answers and work processes are highly fluid, adapting at the speed of organizational learning.

Practical Applications: A lot of Executive Talk, but…

When it comes to driving change, words and actions must match. Few organizations are immune to the massive forces constantly reshaping the world around us, and few organizations can afford to live solely by the Execution as Efficiency model.  We live and work in a world increasingly dominated by knowledge workers, and while one part of an organization may be dominated by an efficiency orientation, other areas, marketing, sales, research and development, must move towards a learning approach or face dire consequences in the marketplace. 

In my own experience working with organizations that have grown up with an emphasis on efficiency but are talking about the need to become more flexible and adaptable, it is often the people doing the talking that are serving as the barriers to change by failing to revamp outmoded systems and processes.

Five Barriers that Get In the Way of Developing a Learning Organization:

  1. The Imperial CEO and Royal Executives: A class system that puts undue weight on the import of executives.  Instead of the executives serving the organization, it seems like the organization exists to serve the executives.
  2. Strategy by Edict and Set According to the Calendar: Every year at about the same time, the organization stops and waits while the royal court sits behind closed doors working out the new organizational structure and lofty statements that provide the masses inspiration to work hard until they receive fresh inspiration next year.
  3. Strategy by Default: “We have a strategy, and it’s to sell more,” is a commonly heard phrase in this tuned-out environment.   Another is, “Strategy is for the big boys, and we’re too small to worry about anything other than doing our jobs.”
  4. People as Expenses: the words coming from the mouths of executives might be saying “People are our most important asset,” but the systems supporting the identification, development and retention of talent are saying, “People are our biggest cost.”
  5. The Functional Structure: specialization works in some areas, but in general, the silo structure of many/most orientations is the greatest impediment to shared learning.  While the phrase, “we’re all in sales” is commonly shouted by salespeople frustrated with the lack of organizational support, the fact is that, “marketing is truly too important to be left to just the marketing department.” 

What to Do If Your Organization Needs to Learn:

  • Take the royalty out of the royal court.  This culture shift has to start at the top—the non-CEO Chairman of the Board and the other independent board members have to step up and overthrow the caste system and monarchy that pervades so many executive environments.
  • Recognize and act on strategy as a process that involves everyone.  (I’ve posted on this one seemingly a thousand times, so I’ll spare you the details and direct you to the Strategy category on this blog.)
  • A robust execution process with plenty of accountability and constant evaluation of performance and consideration of lessons learned is the fastest way to pump up organizational learning.
  • Make the identification, development and retention of talent the job of every manager or supervisor in the organization.  Challenge HR to create systems to support these activities and start living up to the notion that people are your greatest assets.
  • Break down the walls by at least moving towards a strong matrix or a project environment for major initiatives.  Cease and desist with throwing initiatives over silo walls, and build a project culture with the charter to execute and to educate the organization on lessons learned.

The Bottom-Line for Now:

It’s time to quit talking about becoming a learning organization and start knocking down the time worn conventions, institutions and processes that stand in your organization’s way.  In an ideal world, this change starts at the top with an insightful leader or leadership team that understand what it takes to move from an efficiency orientation to a learning focus.  In reality, a lot of this change will need to be driven by leaders in the middle that clearly see what is happening in the external environment as well as what it takes to win in that environment.  If necessary, let the royals executives posture and play while you go about the business of changing the business one initiative at a time.