Learning Organization in

Action

Prof. Dr. Andreas Budihardjo

March, 2019
Sustaining Innovative
Organization
 Main Topics
• Environment : Global, Technology, Stakeholders.
Vision, Mission, Strategy, Organizational
Effectiveness, VUCA

• Human Capital : Competencies, Engaged, Values, Well-being.

Talent Management, Development

• Organizational Capital : Learning Culture, System & Technology

Managing Culture, Leadership

• Social Capital
Networking, Partnership
 Introduction

• Globalization / Environment
• OE/Goals – Cor. Performance – Finance vs
Non Finance
• Innovation
• Org. Capital : Learning Organization / Learning Culture,
Technology
• Human capital
• Sustainability
 Learning Organization
Vision, Mission , Environment : Global, Survive
Strategy Competitive Grow
Sustain
INNOVATION
Appropriate / Fast
Learning
Organization
Organizational
Org. Capital Knowledge Effectiveness
Management Corporate
Human Capital Organization Performance
Social Capital Healthiness
Technology

Outputs- Innovation
New Ideas
New Products

New Systems

New Services
 Factors related to the Globalization

Competition

Customers

Governments

Technology

Markets

Human Capital

Etc.
 Business Environment Challenges
• Tough competition
• Global Issues ( culture, laws, Green, etc.)
• Rapid advancement of Technology
• High Demanding Customers /Employees
• Human Capital
• Varieties of Stakeholders
• Learning Organization
• Multidimensional goals
• Ethical Issues
• Generations
• Government Regulations
• Transformational leadership
• Etc.
 INNOVATION

If we knew what we know we would

be three times more profitable

Lew Platt
(CEO HP)
 Disruptive Innovation
( Clayton Christensen, 1995)

Creating a new market & value network; eventually/ unexpectedly

overtakes an existing market
eg. very lower priced goods

Value network ( by providing a different set of values) displacing

established market leading firms, products & alliances.

Note : not all innovations are disruptive although they are revolutionary

eg. Taxi Uber

 Organization
Environment
VUCA
Stakeholders

INPUT TRANSFORMATION OUTPUT

PROCESS

LEARNING
CULTURE

Human Capital/ Org.

Organizational / Enablers
Capital/Technology
Human Capital
Systems / Culture
Goals

Technology
 Learning Organization

• Companies should apply knowledge management (KM) &

a learning organization to be innovative & win the
competition.

• To be able to implement KM & LO successfully; a company

should have effective KM-enablers
 Radical Change

• Products
• Services
• Systems/processes
• Business model
• Human capital
• etc.
• Volatility : the speed and turbulence of change.

• Uncertainty : outcomes even from familiar

actions are less predictable.

• Complexity : the vastness of interdependencies

in globally connected economies & societies.

• Ambiguity : the multitude of options & potential

outcomes resulting from VUC.
Penteado, 2017
 Vuca
(Adapted Bannett & Lemoine, 2014)

Situations Thoughts Examples

Volatility Relative unstable change Eg. Commodity pricing

Info is available & situation is

Agility
understandable.

Change is often unpredictable.

Uncertainty A lack of knowledge as to whether an Eg. Anti-terrorism initiaves
event will have meaningful
Information
ramifications.

Complexity Many interconnected precedent for Eg. Moving into foreign markets
making predictions as to what to expect.
Network of information & procedures
often multiform & convolutes but not Restructuring
necessarily involving change.
 Vuca

Situations Thoughts Actions-based

Leadership
Volatile Facts vs Opinions Be Future oriented / Proactive
Agility

Uncertain Listening carefully, getting new Try to have a deep understanding

perspectiveUnderstanding, Dynamic
planning Find significant information &
make a strategic planning

Clarity
Complex Collect facts from many resources Find clarity

Examine all facts, data,

information thoroughly
 Leader
• Managing and Change
• Techno use
• Visionary and transformational
• Culture alignment -- CI
• Internal capability / managing Human capital
Organizational Culture
 Organization Culture Roles

Identity
Social system
Social Glue
Sense making
Leading to one direction
Togetherness to achieve goals
etc
 Our core values

• Our core values define our culture and ‘the way

we do things around here’.

• They inform our behavior internally and externally,

uniting people from different cultures, countries and
backgrounds, enabling us to treat each other with
mutual respect, and helping us to work harmoniously
together at Tetra Pak.
 Identity & values

Tetra Pak has a rich and distinguished heritage.

We have built our brand on
 A commitment to innovation
 Customer focus
 Respect for the environment and social
responsibility
 Corporate Culture

• Das Sein Vs Das Sollen

 Elements of Organizational Culture

Artifacts of
organizational culture

Symbols
Language
Rituals & ceremonies
Stories & legends

Beliefs
Values

Basic Assumptions

Organizational (Mc Shane, 2003)

culture
 FIF : TEAM

• Teamwork
• Excellence
• Achieving
• Moving Forward
 Kompas Gramedia
• Caring
• Credible
• Competent
• Competitive
• Customer Delight
 Sub Budaya
( Martin & Siehl 1983)

• Orthogonal

• Encounter

• Enhancing
• Learning Organization
 Learning Organization

• to innovate continuously appropriately, faster

than its rivals

• By unleashing the untapped capabilities of all its

stakeholders esp. employees

Through
• Human Capital, Organizational Capital, Social
Capital & Technology
Knowledge Management /Narejji Manajimento
Umemoto (2002)

has two meanings :

Chishiki kenri (知識管理) emphasizes the

existing knowledge

Chishiki keiei (知識経営) emphasizes the

continuous creation of new knowledge.
 Creating Learning organization

• Change oriented
• Encourage experimentation
• Communicate & Discuss successes & failure
• Encourage & facilitate learning from the external
environment
• Encourage & facilitate learning from employees
• Value & reward learning
 Reasons for applying LO

• Many products, services, services become obsolete rapidly.

• High reject rate
• Productivity
• High competitive environment
• Stakeholders’ demands & wants
• Technology develops very rapidly
• Business environment becomes very complex
• Etc.

Innovation
 Market Value

Financial Intellectual
capital capital

Human Structural
capital capital

Customer Organizational
capital capital

Innovation Process
capital capital

Intellectual Intangible
Skandia property assets
 Knowledge Management Assessment
( Budihardjo, 2015)

• Process KM / Learning : 3.70

• KM Leadership : 4.00
• KM Culture : 4.14
• KM Technology : 4.00
• KM Measurement : 3.73
• Knowledge sharing : 3.82
• Employee Competencies : 3.34
 Barriers

• Learning culture
• Conflicting business priorities
• Lack of dedicated team/ employees
• Lack of engagement & competencies
• Poor Leadership
• Office politicking
• Fear of the unknown
• Others : Discuss
 Learning Organization
(Taylor Newbery 2018)

My company

 Handles failure well & open to change.

 Adaptable
 Provides time for sharing & reflection.
 Engages outside stakeholders.
 Values evaluation
 Put emphasis on strong communication
Leaders of my company

 Develops learning goals & processes for employees.

 Develops learning goals & processes for teams & projects.
 Reviews regularly learning goals & processes with
employees & teams.
 Encourages employees to give feed back.
 Values evaluation as part of organizational planning.
My Company

 Has the right tools to organize & manage information

 Has the right tools to reflect on share lessons learned &
share with colleagues.
 Has a high degree of staff expertise when it come to
learning.
 Has sufficient physical space to share knowledge.
 Has an appropriate structure to facilitate learning.
 Three Building Blocks
( Galvin et al )

Supporting Learning Environment

Concrete Learning Processes & Practices

Leadership that Reinforces Learning

 Learning Culture Inculcation
Leadership/Role
Training Model

Socialization
Story Telling
Rituals

Language
Recruitment &
Selection
Coaching

System
Symbol Management
Others
•Q& A
Thanks So Much