A Learning Organization leverages the initiative and innovation of their most valuable asset, the Employees - It embraces empowerment, creative thinking, calculated risk taking and even the "Maverick" principle.

The Learning Organization effectively encourages the concept of asking for forgiveness instead of asking for permission. Employees continue to strive to increase their personal output and positive results on the job. The objective is to create an environment that will allow its employees to operate in levels one and two of the initiative scale.

Levels of Initiative:

1.     Act immediately and routinely report
2.     Act immediately and immediately report
3.     Recommend and act on agreed solution
4.     Ask
5.     Wait to be told

A Learning Organization is "an organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve and increase its capability." The learning organization approach is based on values such as; passion for learning, communication, collaboration, team building, people value, caring, culture for excellence, change, problem solving and personal development.

The Learning Organization understands the concept that today's generation and future generations believe emphatically that you must:

"Work to live, not Live to work"

The Learning Organization cultural development is important to its success. The culture itself must embrace the concept of becoming employer of choice, which means the culture is built upon the value of the employee to the organization. A social, caring atmosphere exists and employee issues are taken seriously.

"People are not profits but without people there are no profits."

Some companies recognized their dilemma years ago. Many of the top performers in industry are at the top because they strive to be employers of choice. These are forward thinking companies that have found solutions to their recruitment and retention challenges by adapting the learning organization concepts.

Following in their footsteps requires an initial "gut check." Honestly ask yourself how your employees would answer questions like:

• Do you receive counseling on a career plan?
• Is there a current wage and salary plan in place?
• Do performance incentives exist?
• Do you receive regular training and instruction?
• Do you receive performance updates and recognition beyond a once a year chat with your boss?
• Does customer feedback play a role in performance evaluations?
• Does employee feedback and participation exist in the strategic planning process?
• Are suggestions reviewed and awarded?
• Is there both a formal and informal communication channel?
• Does collaboration exist at various levels throughout the organization
• Is innovation and creativity encouraged

These questions relate to the basic core competencies of human resources: staffing, training, rewarding, recognizing and organizing. The business strategic plan cannot succeed without paying attention to this part of the business. Learning Organization's facilitate their employees' involvement and feedback into this process. This basic premise embraces the concepts of a learning organization. Human development is critical.

The differences between the EPO (Efficient Performance Organization) and the LO (Learning Organization) evolve around all five elements of organizational design; structure, tasks, systems, culture and strategy.

Structure------The EPO is based on a vertical structure with a much defined hierarchy of command in a more functional design. Very little collaboration occurs and cross-functional integration of responsibilities is non-existent. The LO embraces a more horizontal structure which encourages more cross functional activity without the caste system getting in the way of efficient communication and departmental cooperation and efficiency.

Tasks--------In the EPO tasks are clearly defined supported by job descriptions and/or job functions that break down the tasks with a clear description of expectations for performance; the LO by contrast embraces initiative, creativity and the role concept. This role may be constantly changing and evolving based on specific goals, challenges and organizational objectives. The team concept is the platform, which supports each and every role as they evolve.

Systems----As corporations grow and become more complex, the necessity for formal business systems become mandatory. These systems not only support operational functions but they must manage the flow of information throughout the organization. This role in the EPO is to manage the complexity of the information and to provide a vehicle to pinpoint deviation from standards. The LO uses systems to optimize performance by creating a knowledge management environment, which becomes a vehicle for collaboration and the capture of intellectual property to be passed on and utilized for employee growth and development. A Knowledge dashboard often exists to store information and facilitate collaboration. A specific communication strategy exists within the LO.

Culture----The EPO culture is more of an autocratic structured type of an environment that may employ old school methodology and in some cases may employ the "Slap & Point" method of motivation or the "Carrot and the Club" methodology. The LO encourages openness, continuous improvement, change, equality and often is described as a family atmosphere where employees are treated with respect. It embraces the "Lead Wolf Model" of leadership. (E-mail rick@ceostrategist.com for a copy of the Lead Wolf Model)

Strategy----The EPO develops a strategy at the top of the organization that often dictates a vision and a mission statement. This strategy supporting that vision is generally developed by top management only with little or no input from employees in the organization. This process ignores the real value of a strategic plan, which is embodied in the process itself.

The LO recognizes Strategic Planning as a management tool. It is used to help an organization clarify its future direction – to focus its energy, and to help members of the organization work toward the same goals. The planning process adjusts the organization's direction in response to a changing environment. Strategic planning is a disciplined effort to support fundamental decisions and actions that shape and guide what an organization is, what it does and why it does it, with a focus on where it wants to go and how it is going to get there.

Discipline is a prerequisite to this process because it requires laser like persistence to result in a productive strategic planning initiative. The process raises a sequence of questions that helps planners examine current reality, test assumptions, gather and incorporate information about the present and perform trend analysis on the future industry environment.

Strategic planning involves anticipating the future environment, creating an end game analysis so the decisions are made in the present. This means that over time, the organization must regularly perform trend analysis in order to make the best decisions it can at any given point – it must manage, as well as plan, strategically.

Strategic planning is not a substitute for the exercise of judgment by leadership. Ultimately "the buck stops somewhere." The strategic planning process does not make the organization work – it can only support the sound judgment and reasoning skills that people bring to the organization.

In the LO Strategic planning is a creative process and the fresh insight arrived at during the process might very well alter past initiatives. Planning consumes resources, a precious commodity. As a process that eventually defines the direction and activities of the organization, it can be an overwhelming and daunting task. Despite the overwhelming nature of the process, the benefits of planning can far outweigh the hard work and pain involved in the process.

LO's emphasize that the true value of a strategic plan is not in the document itself. It is in the process of creating it involving many of their employees from the bottom up. This empowers them to be more effective and better-informed leaders, managers and decision makers.

Shared information is critical in a learning organization because as stated earlier; The learning organization approach is based on values such as; passion for learning, communication, collaboration, team building, people value, caring, culture for excellence, change, problem solving and personal development. Compared to the EPO where information is treated as a basis for detection of deviation to standards.

Dr. Rick Johnson is the founder of CEO Strategist LLC. an experienced based firm specializing in leadership development, strategic planning and sales effectiveness focusing on the creation of competitive advantage in wholesale distribution. CEO Strategist – experts in Strategic Leadership in Wholesale Distribution. Sign up for Rick's monthly news letter – "The Howl" a free monthly newsletter that addresses real world industry issues. – Straight talk about today's issues. E-mail rick@ceostrategist.com. 

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