Organizational Learning: Definition
Organizational learning (OL) in literature bears various definitions which are based on differing perspectives (Manuti et al., 2015). For example, according to Carberry and Cross (2015: 85), OL refers to “how an organization actually learns and adapts to new knowledge”. Easterby-Smith & Lyles (2003: 9) state that OL studies “the learning processes of and within organizations”. However, Barnett (n.d.: 8) argues that “although definitions of OL are somewhat varied, there is also a noticeable convergence of key terms and their meanings”. Lundberg (1995) concludes that OL can be broadly defined as a learning process which occurs within organizations and involves multiple levels of analysis, namely individual, group, organizational, and inter-organizational.
The impact of learning culture on organizational learning and knowledge productivity
One major factor affecting the success of OL and knowledge productivity is a company’s learning culture. Deloitte promotes a continuous and effective learning culture by setting its focus on a holistic and experiential learning journey (Deloitte Switzerland, 2021a). Deloitte also understood that learning needs to be fully embedded across the organization and can thus not be pushed by one department only (Deloitte Switzerland, 2021b). The company encourages self-directed learning which is an aspect that Billet & Choy (2013) consider fundamental in a successful learning organization. Employees at Deloitte take responsibility for themselves and the company shows its support by giving them the chance to also develop within areas that are not necessarily indispensable to their jobs but might add value to the company as a whole. Moreover, Deloitte’s leaders strongly support OL: they listen to, but also question their employees and accompany them on the road to finding the right learning path; this can be related to Senge (1990) who highlights that a leader can be viewed as a designer or teacher whose task is to challenge current mental models and to promote systemic thinking.
Tacit knowledge: a major barrier to organizational learning effectiveness
A major barrier for Deloitte’s OL effectiveness stems from tacit knowledge which could negatively affect the transfer of learning/knowledge within the organization. Gold et al. (2013: 241) state that an inefficient transfer of knowledge might “prevent the achievement of a return on investment (ROI) from HRD events”. Polanyi (1967) defines tacit knowledge as knowledge that is stored in our brains but cannot be easily shared and communicated. Tacit knowledge contributes significantly to knowledge creation in combination with explicit knowledge and arises from repeated engagement, tasks, and interactions with others (Billet & Choy, 2013). The challenge Deloitte needs to face is the development of a suitable learning climate based on social interaction and learning allowing for a conversion of tacit to explicit knowledge. To respond to this challenge, Nonaka et al. (2000) suggest a knowledge-creating model, the spiral of knowledge, also called SECI, which is built on of four major steps: socialization whereby tacit knowledge is shared with other people, externalization which implies the conversion of tacit knowledge to explicit concepts, models, etc., combination which aims at merging tacit and explicit knowledge and internalization which points to the result of the combination of tacit and explicit knowledge to be accepted and integrated as behaviour.
Would you say that your company faces the same challenge of tacit knowledge and what other suggestions do you have for Deloitte to deal with it?
