UNDERSTANDINGORGANIZATIONSASLEARNINGSYSTEMSByEdwinC.Nevis,AnthonyJDiBella,JanetMGouldSloanManagementReviewv36n2PP:73-85Winter1995ABSTRACTAframeworkforexaminingacompanyisprovided,basedonitslearningorientation-asetofcriticaldimensionstoorganizationallearning-andfacilitatingfactors-theprocessesthataffecthoweasyorharditisforlearningtooccur.ThemodelisillustratedwithexamplesfromMotorolaCorp,MutualInvestmentCorp(apseudonymforafinancialservicescompany),ElectricitedeFranceandFiatAutoCo.Bothpartsofthemodelarerequiredtounderstandanorganizationasalearningsystem.Inaddition,separatingthepartsenablesorganizationstoseethattheydoindeedfunctionaslearningsystemsofsomekind.Whenstartingtoimproveitslearningcapabilities,anorganizationmaydecidetofocusonanystageoftheleeringcycle:knowledgeacquisition,dissemination,orutilization.Whileitmaybepossibleornecessarytolookatall3phasessimultaneously,focusingonasingleareaismoremanageable.TEXTWiththedeclineofsomewell-establishedfirms,thediminishingcompetitivepowerofmanycompaniesinaburgeoningworldmarket,andtheneedfororganizationalrenewalandtransformation,interestinorganizationallearninghasgrown.Seniormanagersinmanyorganizationsareconvincedoftheimportanceofimprovinglearningintheirorganizations.Thisgrowthinawarenesshasraisedmanyunansweredquestions:Whatisalearningorganization?Whatdeterminesthecharacteristicsofagoodlearningorganization(orarealllearningorganizationsgoodbydefinition)?Howcanorganizationsimprovetheirlearning?Intheliteratureinthisarea,authorshaveuseddifferentdefinitionsormodelsoforganizationallearningorhavenotdefinedtheirterms.(1)Executiveshavefrequentlygreeteduswithcommentslikethese:*"HowwouldIknowalearningorganizationifIstumbledoverit?"*"Youacademicshavesomegreatideas,butwhatdoIdowithamature,largeorganizationonMondaymorning?"*"I'mnotsurewhatagoodlearningorganizationis,butyoushouldnotstudyusbecauseweareabadlearningorganization."Ourresearchisdedicatedtohelpingorganizationsbecomebetterlearningsystems.Wedefineorganizationallearningasthecapacityorprocesseswithinanorganizationtomaintainorimproveperformancebasedonexperience.Learningisasystems-levelphenomenonbecauseitstayswithintheorganization,evenifindividualschange.Oneofourassumptionsisthatorganizationslearnastheyproduce.Learningisasmuchataskastheproductionanddeliveryofgoodsandservices.Wedonotimplythatorganizationsshouldsacrificethespeedandqualityofproductioninordertolearn,but,rather,thatproductionsystemsbeviewedaslearningsystems.Whilecompaniesdonotusuallyregardlearningasafunctionofproduction,ourresearchonsuccessfulfirmsindicatesthatthreelearning-relatedfactorsareimportantfortheirsuccess:1.Well-developedcorecompetenciesthatserveaslaunchpointsfornewproductsandservices.(Canonhasmadesignificantinvestmentsovertimeindevelopingknowledgeineightcorecompetenciesappliedinthecreationofmorethanthirtyproducts.)2.Anattitudethatsupportscontinuousimprovementinthebusiness'svalue-addedchain.(Wal-Martconductsongoingexperimentsinitsstores.)3.Theabilitytofundamentallyreneworrevitalize.(Motorolahasalonghistoryofrenewingitselfthroughitsproductsbyperiodicallyexitingoldlinesandenteringnewones.)Thesefactorsidentifysomeofthequalitiesofaneffectivelearningorganizationthatdiligentlypursuesaconstantlyenhancedknowledgebase.Thisknowledgeallowsforthedevelopmentofcompetenciesandincrementalortransformationalchange.Intheseinstances,thereis...