Charles Handy, "Managing the Dream," in Chawla & Renesch's (ed.) Learning Organizations: Developing Cultures for Tomorrow's Workplace (Portland, Oregon: Productivity Press, 1995), pp. 44-55.
In "Managing the Dream," Charles Handy argues that today's organizations are facing an uncertain world where change in not only happening fast, but also in a discontinuous form. No organization is safe from this environment. Thus, organizations need to continually renew, reinvent and reinvigorate themselves.
Learning organizations are those with the habit of learning.
His article (1) describes the characteristics of the learning organization; (2) discusses the concept of "The Wheel of Learning;" (3) talks about five key ideas which help to keep the wheel turning (subsidiarity, clubs and congresses, horizontal fast-tracks, self-enlightenment and incidental learning); and (4) addresses the type of leadership needed to nurture such an organization.
CHARACTERISTICS OF THE LEARNING ORGANIZATION:
The learning organization is built upon an assumption of competence that is supported by four other qualities: curiosity, forgiveness, trust and togetherness.
Competence means that each individual can be expected to perform to the limit of her competence, with the minimum supervision. The assumption of competence assumes flat organizations, which put a high premium on early training, on acculturation in their norms and values, and on some form of vetting or qualification before an individual is allowed to operate.
Curiosity is essential, but must be bounded by a license to experiment, as specified in the person's authority.
Experiments may fail, thus forgiveness is also essential. Instead of failures, unsuccessful experiments must be viewed as part of the learning process --as lessons learned.
Competence, curiosity and forgiveness cannot foster a learning organization unless there is trust.
One way to gain trust in individuals is to have them working in teams --togetherness. Few of the problems businesses face nowadays can be handled by one person acting alone. According to Handy, this is fortunate, because curiosity, experimentation and forgiveness need to be shared. "Lonely learners are often slow and poor learners, whereas people who collaborate learn from each other and create synergy." The need for togetherness, both to get things done and to encourage the kind of exploration that is essential to the organization, creates the conditions for trust.
The learning organization is not a comfortable place for its leaders, because much of the power resides at the edge of the organization. In this culture, imposed authority does not work. Authority must be earned from those over whom it is exercised.
The learning organization is held together by shared beliefs and values, by people who are committed to each other and to common goals --a rather tenuous method of control.
THE WHEEL OF LEARNING:
The wheel of learning is composed of four quadrants: questions, ideas, tests and reflection. Only when the entire process is complete can we truly say that we have learned something.
According to Handy, it is easy for people to get stuck in one quadrant --forever collecting more information without putting it to the test, or experimenting without pausing to reflect.
Another pitfall is to stop after one set of tests. The process is designed to move. To keep the wheel turning, we must continue to be curious, to ask the question again, to expect to find new answers.
Handy argues that great leaders combine self-confidence with reasonable doubt, a skepticism that starts the questioning that turns the wheel.
KEEPING THE WHEEL MOVING:
Five ideas can help keep the wheel turning: subsidiarity, clubs and congresses, horizontal fast-tracks, self-enlightenment and incidental learning.
SUBSIDIARITY. It means giving away power to those closest to the action. The centre confines itself to areas as strategic investments, R&D and the information infrastructure --the things which only it can do on behalf of all.
Subsidiarity is managed by defining the boundaries of the job. There are two boundaries. The inner boundary defines the essential core of the job. The outer boundary defines the limits of discretion. In between lies the scope for initiative and for personal responsibility.
CLUBS AND CONGRESSES. These are places and opportunities for talking, for meeting, and for greeting.
HORIZONTAL FAST-TRACKS. As organizations become flatter, ladders to promotion get shorter, creating fewer "conventional" opportunities to reward success. In order to generate adequate motivation, as well as to prevent over-specialization, learning organizations must create horizontal career paths which rotate their best people through a variety of jobs in different parts of the organization. (Except in very specialized areas, where detailed expertise is required.)
Their professionals build their reputation on the variety and quality of the assignments they complete; rewards are based on results more than on a particular grade for the job.
SELF-ENLIGHTENMENT. It means making each individual responsible for their own learning --"individual initiative and corporate support."
INCIDENTAL LEARNING. It means treating every incident as a case study from which we can learn something. The organization must build in time for reflection.
DRIVING THE WHEEL:
Handy argues that ultimately, it is personal example which matters most in keeping the wheel moving. He describes the leaders of learning organizations:
[One] who is seen to be open-minded, questions himself and others, searches for ideas, is obsessed with truth and betterment, is ready to take risks, listens to the criticism and advice and has a purpose beyond himself combined with an awareness that he cannot do it on his own. Give that leader self-confidence and a sense of humor, and most would be happy to follow her example.
THERE IS NO ALTERNATIVE:
Organizations have no choice but to reinvent themselves almost every year. To succeed, they will need individuals who delight in the unknown. The wise organization will devote considerable time to identifying and recruiting such people and to ensuring job satisfaction. Preferred organizations will be learning organizations. They will provide opportunities to exercise responsibility, to learn from experience, to take risks and to gain satisfaction from results achieved and lessons learned.
These will be organizations of consent, not control. They will make many mistakes, but will have learned from them before others realize they occurred. They will invest hugely in their people and trust them hugely and save the salaries of ranks of inspectors. Above all, they will see learning not as a confession of ignorance but as the only way to live.
Prepared by Aldo Santos.