The Five Disciplines of the Learning Organization

1. The Fifth Discipline The Five Disciplines of the Learning Organization And applications to Clemson and CREDO A review of The Fifth Discipline: The Art and Practice of the Learning Organization by Peter M. Senge Published 1990 by Currency Doubleday (a Division of Random House) Presented by Jonathan R.A. Maier Clemson Research in Engineering Design and Optimization Laboratory CREDO February 9th, 2000

2. Presentation Map Roadmap to the Presentation: • What is a Learning Organization? • The five disciplines of a Learning Organization • How can we use this stuff in CREDO and Clemson in general?

3. Learning Organizations What is a Learning Organization, and Why Be One? “The ability to learn faster than your competitors may be the only sustainable competitive advantage” “A fundamental shift of mind…from seeing problems as caused by something ‘out there’ to seeing how our own actions create the problems we experience” “The average lifetime of the largest industrial enterprises is less than forty years” “A Learning Organization is a place where people are continually discovering how they create their reality, and how they can change it.” “What if the high corporate mortality rate is only a symptom of deeper problems that afflict all companies?” “It’s just not possible any longer to figure it out from the top and have every one else following the orders of the grand strategist”

4. Learning Organizations Examples of prototype learning organizations: • Herman Miller Furniture • Hanover Insurance Companies • Kyocera Electric • Boeing • Royal Dutch / Shell Oil • Harley-Davidson

5. The Five Disciplines What are the five learning disciplines? I.Personal Mastery II.Mental Models III.Shared Vision IV.Team Learning V.Systems Thinking

6. Systems Thinking Basic Ideas of Systems Thinking: Structure influences behavior Structure in Human systems is subtle Cause and effect are not closely related in space and time. There is no outside. You and the cause of your problems are part of a single system. Leverage often comes from new ways of thinking I. II. III. IV.V.

7. Systems Archetypes “Reality is made up of circles but we see straight lines” • Systems Thinking is a discipline for seeing the “structures” that underlie complex sistuations, and for discerning high from low leverage change. • In many systems, doing the obvious thing does not produce the obvious, desired change. • Systems Thinking simplifies life by helping us see the deeper patterns lying behind the events and the details. I. II. III. IV.V.

8. Systems Archetypes Nature’s Templates • Balancing process with delay • Limits to growth • Shifting the burden • Eroding goals • Fixes that fail • Success to the successful I. II. III. IV.V.

9. Actual behavior Desired behavior time Systems Archetypes . . . . . . Balancing Process with Delay Actual conditions Delay Corrective action I. II. III. IV.V.

10. Current water temperature HOT! HOT! Delay Desired warm cold cold cold Shower tap setting time Systems Archetypes . . . . . . Balancing Process with Delay Example 1: A Sluggish Shower Moral: In a sluggish system, aggressiveness produces instability. Either be patient or make the system more responsive. I. II. III. IV.V.

11. Current demand for new houses Glut: lots of houses, no demand Glut: lots of houses, no demand time to build a house Sustained demand and production High demand, no houses High demand, no houses High demand, no houses Build more or less time Systems Archetypes . . . . . . Balancing Process with Delay Example 2: The Real Estate Market Notice the more drastic the response, the longer it takes to reach stability--exactly the opposite of what was intended. I. II. III. IV.V.

12. Limiting Condition Growing Action Slowing Action Condition Systems Archetypes . . . . . . Limits to Growth I. II. III. IV.V.

13. Motivation and productivity Size of market niche Morale  Morale  Saturation of market niche Growth  Promotion opportunities time Revenue Delay $ $ $ time Systems Archetypes . . . . . . Limits to Growth Example: A Growing Enterprise Moral: Don’t push on the reinforcing (growth) process. Remove or weaken the source of limitation.. I. II. III. IV.V.

14. Symptomatic “solution” Side effect Problem symptom Delay Fundamental solution Systems Archetypes . . . . . . Shifting the Burden The shifting the burden structure explains a wide range of behaviors where well-intentioned “solutions” actually make matters worse over the long term. I. II. III. IV.V.

15. Staff costs $ $ Managers skills and respect Bring in HR expert $ time Dependency! Personnel performance problem Expectation that HR experts will solve problems time Delay Develop manager’s abilities Systems Archetypes . . . . . . Shifting the Burden Example 1: Personnel problems Moral: Leverage lies in a combination of strengthening the fundamental response and weakening the symptomatic response. This usually requires a long-term orientation. I. II. III. IV.V.

16. Alcohol Stress Alcohol consumption Health Stress Ability to control workload Delay time Reduce workload Systems Archetypes . . . . . . Shifting the Burden Example 2: Alcohol addiction Moral: Notice how insidious the reinforcing cycle is, fostering dependence on the symptomatic solution. Meanwhile the underlying problem grows worse and the capability for fundamental solutions atrophies. I. II. III. IV.V.

17. Delay Goal Pressure to adjust goals Gap Actions to Improve Conditions Condition Systems Archetypes . . . . . . Eroding Goals Eroding Goals is a shifting the burden type structure in which the short-term solution involves letting a long-term, fundamental goal decline. I. II. III. IV.V.

18. Delay High quality standard Customer dissafisfaction Pressure to lower budgets Quality below standard Quality standard Customer dissatisfaction Invest in new higher quality methods Quality time Systems Archetypes . . . . . . Eroding Goals Example: Quality standards Quality standards and hence quality quietly erode. Meanwhile, the customer base becomes dissatisfied, driving down revenues and undermining the enterprise’s ability to invest in the fundamental solution. I. II. III. IV.V.

19. Delay Problem Fix Unintended Consequences Systems Archetypes . . . . . . Fixes that Fail Fixes that Fail describes a system where a fix is effective in the short term, but has unforseen consequences which may require even more use of the original fix, thus perpetuating the problem. I. II. III. IV.V.

20. Delay Maintenance Costs Cutting back maintenance schedules High maintenance costs Break-downs Maintenance schedule time More breakdowns and higher costs Systems Archetypes . . . . . . Fixes that Fail Example: Maintenance Moral: Maintain focus on the long term. Disregard short term “fix,” if feasible, or use it only to “buy time” while working on a long term remedy. I. II. III. IV.V.

21. Success of A Resources to A Allocation to A instead of B Success of B Resources to B Systems Archetypes Success to the Successful . . . . . . In a Success to the Successful system, the more one competitor succeeds, the more resources it gets, thus starving its competitor. I. II. III. IV.V.

22. Time and success at work Success at work Time at work Time and success at home Only 24 hours in a day time Success in family Time at home Systems Archetypes Success to the Successful . . . . . . Example: Balancing work and home life Because of the dominant reinforcing feedback, a Success to the Successful system is inherently unstable. The imbalances are not self-correcting. The only leverage lies in changing the underlying structure. I. II. III. IV.V.

23. Systems Thinking Recap of Systems Thinking: “The bottom line of Sytems Thinking is leverage--seeing where actions and changes in structures can lead to significant, enduring improvements.” “The art of Systems Thinking lies in seeing through complexity to the underlying structures generating change.” Translation: Systems Thinking is not a magic bullet. It only helps you understand what’s going on and what to do about it. It’s still up to you to implement the necessary change. I. II. III. IV.V.

24. The Five Disciplines The Other Four Learning Disciplines: I.Personal Mastery II.Mental Models III.Shared Vision IV.Team Learning V.Systems Thinking I. II. III. IV.V.

25. Personal Mastery “Personal Mastery” Means: • The discipline of personal growth and learning • Approaching one’s life as a creative work • Continually clarifying what is important to us • The ability to see current reality • Pursuing a vision as a purpose rather than just a good idea • That practicing the virtues of life and business success are not only compatible but enrich one another • Not something possessed, but a process. I. II. III. IV.V.

26. Personal Mastery The Discipline of Personal Mastery “The way to begin developing a sense of personal mastery is to approach it as a discipline, as a series of practices and principles that must be applied to be useful.” • Personal Vision • Creative Tension • Structural Conflict • Commitment to the Truth I. II. III. IV.V.

27. Personal Mastery: Personal Vision • Identify ultimate intrinsic desires, not only secondary goals • Coupled with Purpose (‘why’) (abstract) • Vision is a specific destination (‘what’) (concrete) • True vision is not composed of negatives of the now • Multifaceted (material+personal+service+…) • Takes courage to hold and pursue Personal Mastery is a process of continually focussing and refocusing on what one truly wants, on one’s visions. I. II. III. IV.V.

28. Personal Mastery: Creative Tension Vision We are acutely aware of the gap between our vision and reality • This gap can be discouraging, or... • The gap can be a source of energy, in fact... • This gap is the source of creative energy! Current reality “There are only two possible ways for the tension to resolve itself: pull reality toward the vision or pull the vision toward reality. Which occurs will depend on whether we hold steady to the vision.” I. II. III. IV.V.

29. Belief in powerlessness or unworthiness Your current reality Your Vision Personal Mastery: Structural Conflict “Practically all of us have a dominant belief that we are not able to to fulfill our desires.” • Our unawareness of this belief contributes to its power • We “cope” by letting vision erode, focussing on erasing negatives, or through shear will-power • But the only real leverage lies in gradually changing the underlying beliefs and by Commitment to the Truth... I. II. III. IV.V.

30. Personal Mastery: Commitment to the Truthinvovles... • Rooting out the ways we limit or deceive ourselves • Continually updating our theories of why things are the way they are • Continually broadening our awareness • Deepening our understanding of the structures underlying current events • Recognizing ‘coping’ with structural conflict and then making appropriate changes • Compassion: Seeing the structures that trap all of us unless discovered I. II. III. IV.V.

31. The Five Disciplines I.Personal Mastery II.Mental Models III.Shared Vision IV.Team Learning V.Systems Thinking I.II. III. IV.V.

32. Mental Models The Discipline of Mental Models • Involves surfacing, testing, and improving our internal pictures of how the world works. • Our mental models determine not only how we make sense of the world, but how we take action • Problems with mental models arise when they are tacit--when they exist below the level of awareness I.II. III. IV.V.

33. Mental Models Mental Models and “Skilled Incompetence” • A worse problem is that we tend to trap ourselves in defensive routines • These insulate our mental models from examination • Consequently we develop “skilled incompetence,” • We become skilled at protecting ourselves from the pain and threat posed by real learning situations (!) • Thereby we never learn to produce the results we truly desire!!! I.II. III. IV.V.

34. Mental Models Example: General Motors The following tacit mental model was used at GM for decades until the crisis in the 1980’s, after losing 38% of their market share to overseas competitors: • GM is in the business of making money, not cars • Cars are primarily status symbols. Therefore styling is more important than quality • The US car market is isolated from the rest of the world • Workers do not have an important impact on productivity or product quality • Everyone connected to the system has no need for more than a fragmented, compartmentalized understanding of the business I.II. III. IV.V.

35. Mental Models The “Ah-ha!” of Mental Models: • All we ever have are assumptions--never truths • We always see the world through our mental models • Our mental models are never complete • Our mental models are chronically nonsystemic So what are the skills necessary to use mental models effectively? …… I.II. III. IV.V.

36. Mental Models Skills of Mental Models • Recognizing “Leaps of Abstraction” • Exposing the “Left Hand Column” • Balancing Inquiry and Advocacy • Excercising Scenarios in complex situations • Facing up to distinctions between espoused theories (what we say) and theories-in-use (the implied theory in what we do) I.II. III. IV.V.

37. The Five Disciplines I.Personal Mastery II.Mental Models III.Shared Vision IV.Team Learning V.Systems Thinking I.II. III. IV.V.

38. Shared Vision A Shared Vision is… • the answer to the question, “What do we want to create?” • not an idea, not even an important idea • rather a force in people’s hearts • compelling enough to acquire the support of more than one person • not imposed by one person or group onto others • a vision that people are truly committed to, because it reflects their own personal vision I.II. III. IV.V.

39. Shared Vision Mastering the discipline of Shared Vision requires... • First giving up the idea that visions are always announced from “on-high” • Sharing your personal vision and asking for support • Enrolling others vs. getting them to “buy in” • Fostering genuine commitment rather than compliance A committed person doesn’t play by the rules of the game. He/she is responsible for the game. A compliant person just plays by the rules. I.II. III. IV.V.

40. Shared Vision Examples of Shared Visions: • AT&T: Universal phone service • Ford: everyone affording a car • Apple: empowering people with easy to use computers • Microsoft: a computer in every home • Herman Miller: “a gift to the human spirit” • JFK: a man on the moon by the end of the decade • Medieval cathedrals You cannot have a learning organization without shared vision. Without a pull toward some goal which people truly want to achieve, the forces in support of the status quo can be overwhelming. I.II. III. IV.V.

41. The Five Disciplines I.Personal Mastery II.Mental Models III.Shared Vision IV.Team Learning V.Systems Thinking I. II. III. IV.V.

42. Team Learning Team Learning involves… • Alignment • Thinking insightfully about complex issues • The need for innovative, coordinated action • Dialogue and discussion • Practice I. II. III. IV.V.

43. Team Learning Alignment When a group of people function as a whole An unaligned team An aligned team An aligned team with individual empowerment An unaligned team with individual empowerment I. II. III. IV.V.

44. Team Learning Dialogue (‘dia’ + ‘logos’) • Occurs when a group becomes open to the flow of a larger intelligence IQgroup > IQindividual • attempts to go beyond any one individual’s understanding • Allows people to become observers of their own thinking • Differs from discussion in that there is a free exploration of a complex issue, rather than presenting and defending individual viewpoints I. II. III. IV.V.

45. Team Learning Three Conditions for Dialogue: • All participants must suspend their assumptions, literally to hold them “as if suspended before us” • All participants must regard one another as colleagues • There must be a facilitator who holds the context of the dialogue In dialogue, different views are presented as a means toward discovering a new view. Discussions converge on a single conclusion or course of action. Dialogues are diverging; they do not seek agreement, but a richer grasp of complex issues. I. II. III. IV.V.

46. Defensive routine Perceived need for new understanding and behavior Threat Learning Gap Delay Current understanding and behavior Need for inquiry and change Team Learning Dealing with Conflict The difference between great teams and mediocre teams lies in how they face conflict and deal with the defensiveness that invariably surrounds conflict. This is often a classic “shifting the burden” type structure Skillful facilitators learn to confront defensiveness without producing more defensiveness I. II. III. IV.V.

47. Applications Building a learning organization • Read The Fifth Discipline • Define our shared vision • Begin using systems thinking (every day) • Practice exposing our own mental models • Begin to foster individual’s personal mastery • Practice team learning as a team

48. Marks on papers Dislike of good writing Writing problems Delay Improve writing skills Applications Example: Trying to improve writing skills in ME 221: I realized this was a classic “shifting the burden” type structure. Consequently I am focussing on implementing the fundamental solution.

49. Delay Good economy Increase foreign students Lack of enrollment Xenophobia Applications Example: Why the graduate school is having trouble recruiting (1st stab) “Fixes that fail”

50. Increase foreign students and/or lower standards Xenophobia, students returning overseas, & ??? Good economy Lack of enrollment Delay Make graduate school more economically valuable Applications Example: Why the graduate school is having trouble recruiting (2nd stab) “Shifting the burden”