As I emphasized several times, learning is at the center of our discussion in supply chain management in this course. So I want to close today's lecture by discussing leaning organization. Basically, learning organization is an organization that is very good at learning. And I think that the definition of learning organization in this slide is pretty a generalizable one. In other words, it's pretty general definition of learning organization. But you will see how this generalized definition is actually very close with the, the learning, we already defined as process. Here the learning organization is an organization skilled at creating, acquiring and transferring knowledge. And we said that this is not just general knowledge, only say that this is knowledge about cause, cause and effect relationship among key managerial values. And also the learning must not stop at transferring or acquiring or creating knowledges. Because of that knowledge, because of the knowledge, the organization must be able to change the behavior of its members, behavior of its imports. So here, modifying the behavior is very important. [BLANK_AUDIO] And we also said that why we go through all this? For the sake of knowledge, it's natural. We want to create, acquire and transfer knowledge and modify our behavior because eventually, we want to improve our performance. So here, it says that improving actions, improving actions through better knowledge and understanding and improve action, meaning that we want enhance our performance. So you see that the very general or generic definition of the learning organization is pretty much consistent with what we defined as a learning in operations. And I think that this kind of organization or this kind of company will have a very good comparative advantage, a very strong competence when it comes to supply chain management. So let's think about what are the, you know, specific elements, its so-called the building blocks for learning organization. I want to talk about very general things, and I think that we'll have more time to talk about each one of these elements in great detail. Basically, learning organization is good at the systematic problem solving. And problem solving is at the center of all learning process, because this is the way we improve our understanding about this course and effective relationships, so problem. Why, why that is a some problem? Problem caused by some factors, so solving problem meaning that what cause, what causes that problem? So basically, it is about cause and effect relationship analysis. [BLANK_AUDIO] Experimentation with the new approaches. This is also part of this learning, right? Problem solving. Remember what happened when you do this you know, degradation analysis over [INAUDIBLE] we apply one, let's say, initial model, mental model, and then we do some experimentation and we see the what consequences we can have and so on and so forth. And then we improve with the new mental model with the new approaches. Sometimes it's possible that we learn from our own experience, right? Yeah, learning by doing. But if we try to learn everything in our own way, then it would be too time consuming, and it would be too expensive. Learning by doing is great way to learn, but it's only one of those many learning paths. So you also want to learn from other's experiences and other's best practices. This is basically the benchmark, right? We learn things from others. You see, basically, we have three ways for this systematic problem solving. Based on our own experience and history, learning from other's experience and other's best practices, and then we can do some experimentation. There is pretty way to do it simulation, right? You want to do some simulated environment and simulation. And also, learning organizations must be able to transfer the knowledge quickly and efficiently throughout the organization. In other words, it must not stop at the individual learning only. It must [UNKNOWN] this individual learning into organizational learning or team learning. And I think that probably when we talk about the importance of a team and team approaches in product innovation, as well as quality improvements. Finally, let's think about this one, stages of learning. What learning happens, how learning happens right, how learning happens and what changes we must, we must you know, initiate. Usually, the learning occurs at the cognitive level first. In other words, people realize that learning something is very important. People realized that doing this and that is important for the company. Okay, that's cognitive change or cognitive level learning. [BLANK_AUDIO] But the true learning must have stopped at this cognitive level only. In other words, even if people think that this certain methodology is good, it is nothing unless they actually behave in a way consistent with that method. For example, even if the people believe that ERP is a good tool to improve their performance. But let's say, unfortunately, they don't know how to use ERP. They don't like using ERP because using ERP somehow reduces their authority or reduces their organization power or whatever. In other words, if cognitive learning or cognitive level learning is not translated into some behavior or change, it's nothing. So if you think ERP is good, then you have to behave that way. And how can, how can we make sure that there is good transition from cognitive level to behavioral level? [BLANK_AUDIO] There's gotta be incentive, right? Incentive alignment must be there. You gotta give some incentive to the people, so that the, they not just stay at the cognitive forever. They should start behaving that particular way. So that's called incentive alignment. Here, incentive is not just monetary. And as you probably know, that there are two different types of motivational factors. One is implicit motivation. The other one is expressed motivation. Expressed factor increase monetary values and so on and so forth. Whereas implicit, meaning that there's some emotional and psychological and spiritual. Whatever you use, design your incentive mechanism so that the people just behave in a way consistent with the way they think, the way they can see. And now, I say that they could change the behavior, but you also make sure that the behavior must translate into actual performance, actual, let's say, performance improvements, right? So I want to make sure that the behavioral change must translate to a performance increasing. Then, what happens? What we need to have between these two? In other words, here, you gotta have good infrastructure. [BLANK_AUDIO] For instance, let's say, you gotta have a very good IT infrastructure in order to make sure that the behavioral change should improve the possibilities of the organization, right? So these are three areas. Cognitive level learning, behavioral level learning and then finally, there must be, they must drive the performance. So measurable improvements in results. Okay. Today, we learned a lot, actually, in learning. I define the learning from, [UNKNOWN] perspective. And I showed you comparable mythologies or comparable approaches that might help you to visualize this whole learning process, and that help you to understand the importance of learning more effectively. And then we talked about Chris Argyris's single loop versus double loop learning, because that has pretty interesting implications for the supply chain management as well. And then we talked about the learning organization. So, as you know that the title of this course is supply chain management, a learning perspective, that means that the [UNKNOWN] to get the, the issues, issues in supply chain management, topics in supply chain management, and problems in supply chain management from the learning perspective. What does that mean? We wanted to get not just short term solutions, but also long term, fundamental solutions that had course to eliminate the [UNKNOWN] of the problems. Supply chain management is not just an isolated event. If we truly solve problems in supply chain management, we must be able to look at the entire organization, entire cause and effect relationship. And then we can find the divergent point where we can solve the problem in the most effective way. In that sense, learning and learning capabilities are really important. And in the ensuing lectures, in the following lectures, we will actually, you know, apply this learning perspective to this supply chain management problem solving and improving supply chain management effectiveness, and you know, you will see how these two, the learning theory and supply chain management are actually very closely related to each other and very closely connected with each other. Okay, I hope you enjoyed this class, and I will see you next time as well. [BLANK_AUDIO]
