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Rushil:
Virtual organization
A virtual organization or company is one whose members are geographically apart, usuallyworking by computer e-mail and groupware while appearing to others to be a single, unified
organization with a real physical location.
The term virtual organization is used to describe a network of independent firms that join
together, often temporarily, to produce a service or product. Virtual organization is often
associated with such terms as virtual office, virtual teams, and virtual leadership. The
ultimate goal of the virtual organization is to pro vide innovative, high-quality products or
services instantaneously in response to customer demands.
The term virtualin this sense has its roots in the computer industry. When a computer
appears to have more storage capacity than it really possesses it is referred to as virtual
memory. Likewise, when an organization assembles resources from a variety of firms, a
virtual organization seems to have more capabilities than it actually possesses.
What are virtual organizations?
You might ask yourself the question "Why do we need to go to a specific physical place to
work?".The answer often is that either "this is where th e people that you work with are" or "that
this is where you find the information you need as well as the means to process it" - in
summary where your office is.
But what if you no longer had to go to this place to contact the people or get the
information? Instead all this could be done electronically and you and everyone else would
do their work from any location.
In that case you can have taken the first few steps to a virtual organization.
But there is more to virtual organizations then simply replacing the location where people
work.
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What makes a virtual organization different?
It removes many barriers - especially that of time and location.
It emphasizes concentrating on new services and products, especially those with intensive
information and knowledge characteristics, rather than concentrating on cost savings madepossible by removing the barriers.
It goes beyond outsourcing and strategic alliances and is more flexible in:
y that it has continuously changing partners,
y the arrangements are loose and goal oriented,
y emphasizes the use of knowledge to create new products and services,
y its processes can change quickly by agreement of the par tners.
y
What are the steps to a virtual organization?
Often the steps here go through:
y outsourcing mainly to reduce costs where there is some experience in working at a
distance, but three is one dominant party and high certainty of what everyone must
do.
y forming strategic alliances to share the work and gain experience in developing and
sharing common goals. Here there is no dominant party although the parties are
fixed. and
y then becoming virtual organizations to achieve flexibility. Now the partners
themselves can quickly change, with greater emphasis on the use of knowledge to
create new and innovative products.
It is of course possible for only a part of an organization to become virtual. In that case
organizations can gradually evolve from real to virtual. Typical virtual structures can include:
Virtual TeamHere team roles are defined as needed and people are chosen to fill the
roles depending on their expertise.
Virtual
Laboratory
(Collaboratories)
In this case laboratory participants can be experts from anywhere, who
are called to contribute to a project whenever particular expertise is
needed.
Virtual OfficeHere office roles may be assigned to people who are only called upon to
carry out office duties when needed.
Virtual Shops Here the shop products can quickly change with different vendors
becoming part of the virtual shopping center.
Virtual
OrganizationHere the entire organizartion is virtual.
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In all cases virtual implies:
y Continually changing membership of participants,
y Self-management within teams and units,
y Knowledge (not structure) oriented work.
Konica:
Why virtual?
What are the reasons for organizations becoming virtual. These include:
y Globalization, with growing trends to include global customers,y Ability to quickly pool expert resources,
y Creation of communities of excellence,
y Rapidly changing needs,
y Increasingly specialized products and services,
y Increasing required to use specialized knowledge .
CHARACTERISTICS OF A VIRTUAL ORGANIZATION
Partners in virtual organizations share risks, costs, and rewards in pursuit of a globa l market.
The common characteristics of these organizations include a purpose that is motivated by
specific market opportunities, world-class core competence, information networks,
interdependent relationships, and permeable boundaries.
Virtual organizations represent structures that are motivated by specific market
opportunities. Once the alliance has been formed and the opportunity has been exploited,
partners may move on to new partnerships and alliances.
Each partner in a virtual corporation contributes a world-class core competence, such as
design, manufacturing, or marketing. This ability of multiple firms to create synergies among
world-class functions and processes creates untold possibilities.
As organizations create these new linkages, advanced information technology becomes an
important element, and key to the success of a virtual organization.Computerized
information systems allow employees from geographically dispersed locations to link up
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with one another. The virtual office may use desktop videoconferencing, collaborative
software, and intranet systems to enhance the flow of information among team members.
Besides the need for instantaneous communication with one another, members of these
autonomous virtual teams have increasing requirements regarding the amount and quality
of information they need to do their work.
Members of the virtual organization, in turn, create a network of interdependent
relationships. These relationships require firms to be much more dependent on one another
than they have been in the past, demanding unprecedented levels of trust.Strong
interdependencies cause organizations' boundaries to be blurred as competitors, suppliers,
and customers enter into cooperative agreements. These new relationships among firms
obligate organizations to use innovative management practices.
EXAMPLES OF VIRTUAL ORGANIZATIONS
Computer organizations that have successfully implemented forms of this new structure
include Apple Computer and Sun Microsystems. When Apple Computer linked its easy -to-
use software with Sony's manufacturing skills in miniaturization, Apple was able to ge t its
product to market quickly and gain a market share in the notebook segment of thePC
industry.
Sun Microsystems has been considered another highly decentralized organization
comprised of independently operating companies. Sun positions information sy stems as a
top priority, trying to achieve faster and better communication. With numerous
"SunTeams," members operate across time, space, and organizations to address critical
business issues. Sun managers identify key customer issues and then form teams w ith the
critical skills and knowledge needed to address the issue. This team might include sales
people, marketing personnel, finance, and operations from various places around the globe;
customers and suppliers may become episodic members as necessary. We ekly meetings
may take place via conference calls. Critical to the team's success is the selection of talent
from the organization, defining a clear purpose for the team's efforts, and establishing
communication links among the team members.
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Sun has been working on further development of technologies such as EDI (Electronic Data
Interchange) and RFID (Radio Frequency Identification technology). Both EDI and RFID will
impact information exchange globally and across numerous industries.
CHALLENGES
Virtual organizations can be very complex and problematic; they fail as often as they
succeed. Among the many challenges of the virtual organization are strategic planning
dilemmas, boundary blurring, a loss of control, and a need for new managerial skills.
Strategic planning poses new challenges as virtual firms determine effective combinations of
core competencies. Common vision among partners is quintessential to cooperating firms.
Focused on a common goal, firms develop close interdependencies that may make i t
difficult to determine where one company ends and another begins. The boundary -blurring
demands that these boundaries be managed effectively.Coordinating mechanisms are
critical elements for supporting these loose collections of firms.
Virtual structures create a loss of control over some operations. This loss of control requires
communication, coordination, and trust among the various partners, as well as a new set of
managerial skills. Employees are exposed to increased ambiguity about organizational
membership, job roles and responsibilities, career paths, and superior -subordinate
relationships. This ambiguity requires management to rethink rewards, benefits, employee
development, staffing and other employee-related issues. Developing leaders who are able
to create and sustain these organizational forms is critical.
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Ganesh :
Learning organization
The word "learning" was coined in the 1980s to describe organizations that experimentedwith new ways of conducting business in order to survive in turbulent, highly competitive
markets (see Argyris and Schon 1996; also Senge 1990). Table 1 presents the characteristicsthat define the learning organization, and the positive results accruing to individuals and the
organization or culture as a whole when they are present. Two characteristics are individual;three are group-based. The characteristics listed in Table 1 are general qualities that exist
within a learning culture. However, there are concrete cognitive and behavioral tools, as well
as specific types of social interaction and structural conditions, that improve the chances that
these qualities are achieved and sustained over time. Fall under four main categories:
y communication and openness;
y inquiry and feedback;
y adequate time; and
y mutual respect and support.
Communication and openness involve both self-reflection (i.e., being honest with oneself
about a situation) and participatory reflection (i.e., pushing the group to clarify and evaluate
the assumptions underlying how work gets done within the organization). It also involves
communication that flows as much from the bottom of a hierarchy to the top as vice-versa.Inquiry allows individuals to become adept at questioning things as a normal course of their
work. It encourages people to take risks in improving aspects of their work. Positive feedback
involves activities that are designed to let people learn from their inquiries, to build a
personal knowledge base that is defined by proactive rather than reactive or defensive
thinking. It involves those with more experience helping those with less experience
understand not just the "right" way to do things, but what can be learned from doing things
the "wrong" way. Communication, reflection, feedback, flexibility, and inquiry all depend
upon individuals having adequate time to engage themselves and others in meaningful
dialogue and brainstorming. Finally, mutual respect and support involves treating co-workers,
supervisors, and employees equally and consistently with respect to one's ability to contribute
positively to the organization, regardless of where that person is located in the organizational
hierarchy.
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A learning organization is the term given to a company that facilitates the learning of its
members and continuously transforms itself[1]
. Learning organizations develop as a result of
the pressures facing modern organizations and enables them to remain competitive in the
business environment[2]
. A learning organisation is one in which the structure, culture and
processes facilitate organisational learning. An organisation that facilitates the learning of all
its members and continuously transforms itself.
The freedom to let go of the past and try new ways in the future. Where successes and
'failures' are reviewed for their learning potential. Where individuals and departments are
appraised for their learning systems as much as for their p ast performance.
Where mistakes are allowed if not exactly encouraged for it is recognised that we will
never learn if we don't try out new ideas, new ways of doing things, and these won't always
work.
Table 1. Characteristics of a Learning Organization and Associated Best Practices
Characteristic Definition Associated Best Practices Positive Byproducts
Self mastery-
individual
The ability to honestlyand openly see reality
as it exists; to clarify
one's personal vision
1.Positive reinforcement
from rolemodels/managers
2.Sharing experiences3.More interaction time
between supervisory
levels
4.Emphasis on feedback
5.Balance work/non-
work life
Greater commitment
to the organizationand to work; less
rationalization ofnegative events;
ability to face
limitations and areas
for improvement;
ability to deal with
change
Mental
models -
individual
The ability to compare
reality or personal
vision with
perceptions;
reconciling both into a
coherent
understanding
1.Time for learning
2.Reflective openness
3.Habit of inquiry
4.Forgiveness of oneself
5.Flexibility/adaptability
Less use of defensive
routines in work; less
reflexivity that leads
to dysfunctional
patterns of behavior;
less avoidance of
difficult situations
Shared vision- group
The ability of a group
of individuals to hold ashared picture of a
mutually desirablefuture
1.Participative openness
2.Trust3.Empathy towards
others4.Habit of dissemination
5.Emphasis on
cooperation
6.A common language
Commitment over
compliance, fasterchange, greater
within group trust;less time spent on
aligning interests;
more effective
communication flows
Team
learning -
The ability of a group
of individuals to
1.Participative openness
2.Consensus building
Group self-
awareness;
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group suspend personal
assumptions about
each other and engage
in "dialogue" rather
than "discussion"
3.Top-down and bottom-
up communication flows;
4.Support over blame;
5.Creative thinking
heightened collective
learning; learning
"up and down" the
hierarchy; greater
cohesiveness;
enhanced creativity
Systems
thinking -
group
The ability to see
interrelationships
rather than linear
cause-effect; the
ability to think in
context and appreciate
the consequences of
actions on other parts
of the system
1.Practicing self mastery
2.Possessing consistent
mental models
3.Possessing a shared
vision
4.Emphasis on team
learning
Long-term
improvement or
change; decreased
organizational
conflict; continuous
learning among
group members;
Revolutionary over
evolutionary change
Shalini:
A learning organization has five main features;
1. Systems thinking.
2. Personal mastery.
3. Mental models.
4. Shared vision and
5. Team learning.
1. Systems thinking. The idea of the learning organization developed from a body of work
called systems thinking[5]
. This is a conceptual framework that allows people to study
businesses as bounded objects[3]
. Learning organizations use this method of thinking when
assessing their company and have information systems that measure the performance of
the organization as a whole and of its various components[5]
. Systems thinking states that allthe characteristics must be apparent at once in an organization for it to be a learning
organization[3]. If some of these characteristics is missing then the organization will fall short
of its goal. However OKeeffe[2]
believes that the characteristics of a learning organization
are factors that are gradually acquired, rather than developed simultaneously.
2. Personal mastery. The commitment by an individual to the process of learni ng is known
as personal mastery.[3]
. There is a competitive advantage for an organisation whose
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workforce can learn quicker than the workforce of other organisations[4]
. Individual learning
is acquired through staff training and development[6]
, however learning cannot be forced
upon an individual who is not receptive to learning [3]. Research shows that most learning in
the workplace is incidental, rather than the product of formal training[2]
, therefore it is
important to develop a culture where personal mastery is practiced in daily life[3]
. A learning
organization has been described as the sum of individual learning, but there must be
mechanisms for individual learning to be transferred into organizational learning [4].
3. Mental models. The assumptions held by individuals and organizations are called mental
models.[3]
. To become a learning organization, these models must be challenged. Individuals
tend to espouse theories, which are what they intend to follow, and theories -in-use, which
are what they actually do[3][5]. Similarly, organisations tend to have memories which
preserve certain behaviours, norms and values[7]
. In creating a learning environmen t it is
important to replace confrontational attitudes with an open culture [6] that promotes inquiry
and trust[2]. To achieve this, the learning organization needs mechanisms for locating and
assessing organizational theories of action[5]
. Unwanted values need to be discarded in a
process called unlearning[7]
. Wang and Ahmed[4]
refer to this as triple loop learning.
4. Shared vision. The development of a shared vision is important in motivating the staff to
learn, as it creates a common identity that provides focus and energy for learning [3]. The
most successful visions build on the individual visions of the employees at all levels of the
organisation[6]
, thus the creation of a shared vision can be hindered by traditional structures
where the company vision is imposed from above[2]
. Therefore, learning organizations tend
to have flat, decentralised organisational structures[5]
. The shared vision is often to succeed
against a competitor[4]
, however Senge[3]
states that these are transitory goals and suggests
that there should also be long term goals that are intrinsic within the company.
5.Team learning. The accumulation of individual learning constitutes Team learning. The
benefit of team or shared learning is that staff grow more quicklyand the proble m solvingcapacity of the organization is improved through better access to knowledge and
expertise[6]. Learning organizations have structures that facilitate team learning with
features such as boundary crossing and openness.Team learning requires individuals to
engage in dialogue and discussion[2]
; therefore team members must develop open
communication, shared meaning, and shared understanding[2]. Learning organizations
typically have excellent knowledge management structures, allowing creation, acquisition,
dissemination, and implementation of this knowledge in the organisation].
Barriers
Even within a learning organization, problems can stall the process of lea rning or cause it to
regress. Most of them arise from an organization not fully embracing all the necessary
facets. Once these problems can be identified, work can begin on improving them.
Some organizations find it hard to embrace personal mastery because as a concept it is
intangible and the benefits cannot be quantified[3]
; , personal mastery can even be seen as a
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threat to the organisation. This threat can be real, a s Senge[3]
points out, that to empower
people in an unaligned organisation can be counterproductive. In other words, if
individuals do not engage with a shared vision, personal mastery could be used to advance
their own personal visions. In some organisations a lack of a learning culture can be a barrier
to learning. IAn environment must be created where individuals can share learning without
it being devalued and ignored, so more people can benefit from their knowledge and the
individuals becomes empowered[2]. A learning organization needs to fully accept the
removal of traditional hie rarchical structures.[2]
.
Resistance to learning can occur within a learning organization if there is not sufficient buy -
in at an individual level. This is often encounter ed with people who feel threatened by
change or believe that they have the most to lose[2]. They are likely to have closed mind
sets, and are not willing to engage with me ntal models[2]
. Unless implemented coherently
across the organization, learning can be viewed as elitist and restricted to senior levels. In
that case, learning will not be viewed as a shared vision[6]. If training and development is
compulsory, it can be viewed as a form of control, rather than as personal development[6]
.
Learning and the pursuit of personal mastery needs to be an individual choice, therefore
enforced take-up will not work[3].
In addition, organizational size may become the barrier to internal knowledge sharing.
When the number of employees exceeds 150, internal knowledge sharing dramatically
decreases because of higher complexity in the formal organizational structure, weaker inter-
employee relationships, lower trust, reduced connective efficacy, and less effective
communication. As such, as the size of an organizational unit increases, the effectiveness of
internal knowledge flows dr amatically diminishes and the degree of intra -organizational
knowledge sharing decreases.
Manali :
Case Study 1: ABN AMRO Bank
ABN AMRO An Introduction
Netherlands' former two largest banks Algemene Bank Nederland (ABN) and Amsterdam-
Rotterdam Bank (AMRO) merged to form ABN AMRO Bank in 1991. ABN AMRO is an
international bank with roots stretching back to 1824. ABN AMRO ranks eighth in Europe
and 13th in the world based on total assets. ABN AMRO is Hollands leading bank operating
over 800 offices in Holland together with 2,600 worldwide offices in 75 different countries
with over 110,000 employees.
Concept 1: Continuous Improvement
A Learning Organisation
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The ongoing success of ABN AMRO is attributed to its commitment towards employee
learning and personal development; learning is a major priority for the organisation. Being a
dynamic and a fast growing organisation, there is the need for staff flexibility, staff mobility
and staff adaptation to new technologies, practices, situations and challenges.
In order to support the personal development and career development of employees, ABN
AMRO offer continuous learning programmes such as:
y Job-related training
o Induction programmes to help new employees integrate into the new work
environment
o In-house training seminars
o In-house training programmes
o External courses
o Coaching/mentoring programmes
o Short term assignments in overseas offices
y Management programmes
y Leadership programmes
o e-Learning
o Products and Professional skills training
y Development Programmes
o Structural talent management & succession planning
o Management and leadership programmes
o Full range of training for new and diversified products
o Internal mobility programme to encourage horizontal moves across business
units for more challenging roles and opportunities.
Learning is an investment and an ongoing process in ABN AMRO adding value both to theorganisation and to its employees.
e-learning
e-learning is a training channel which is effectively utilised by ABN AMRO. "We need to
make training accessible to people when and where they need it... Our multimedia training
is available in every city where we have people... Were very close to implementing i ntranet-
based systems to bring training to peoples desks" said Judi Davenport, Director of Training
(Aggressive training key to ABNAMRO acquisition success, Undated).
e-learning is an innovative learning solution and is the only way forward for a globalLearning Organisation such as ABN AMRO where staff is deployed worldwide.
Continuous improvement is achievable through the continued upgrading of the
organisational Total Quality Management practices as an ongoing learning experience. TQM
can be achieved by having a knowledgeable workforce who continuously strives for self-
improvement and through personal development for the benefit of both the organisation
and its employees.
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Managing Cultural Change through Learning
One of ABN AMROs major strategies is the acquisition ofFinancial Institutions such as the
LaSalle National Bank and the Cragin Federal Bank in the USA. ABN AMRO is an active
Learning Organisation and has an aggressive program aimed to change the traditional
banking culture to meet todays challenges.
"Were going through so much change," says Director of Training Judi Davenport "that I
think everybody realises we need to help people through that change... as people need new
skills and knowledge, we need to be there to give it to them and not let that happen by
chance" (Aggressive training key toABNAMRO acquisition success, Undated).
As part of the acquisition and restructuring process, ABN AMRO ensures that during the
transition of the merger of the new staff with the old staff no one will be left behind. All
staff will be given equal opportunities and will be given all the necessary training to enhance
their skills and personal development in an effort to adapt effortlessly to the new culture
and environment. This will ensure a smooth transition which ultimately will benefit the
organisation, its employees and its customers.
Change Community
ABN AMRO set up a community program referred to as The Change Community with the
purpose "to live, plant and support action at ABN AMRO towards more meaningful and
inspiring work/life." The community meet at regular intervals to engage in dialogue and
reflection regarding issues of importance to the organisation and society such as diversity,
work-life balance, bringing individual values to work and sustainable development.
Together, members exchange ideas and dilemmas with the intent to support the integration
of sustainable development in the organisation.
This is another channel that ABN AMRO utilises in addressi ng its Learning Organisation
objectives. (ABNAMRO Change Community, Undated)
An Opportunity for Growth
ABN AMRO is always in search of reaching new heights by exploring new ways for business
growth and business development.
ABN AMRO has begun a new learning experience in its history. ABN AMRO in cooperationwith its new consortium partners Fortis, The Royal Bank ofScotland and Sandanter, have
joined theirexperiences to integrate and grow their businesses to their full potential. The
combination ofthe consortium businesses together with that of ABN AMRO should result in
an enhanced market presence, strengthened products and growth prospects. This should
also deliver benefits to customers who will gain from the increased scale and efficiency of
the businesses.
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"Change is underway and we are in good shape to forge ahead" said Mark Fisher,
Chairman of ABN AMRO Managing Board.
This is an outstanding opportunity for ABN AMRO bringing a new challenging learning
experience to the organisation. Sharing experiences with the consortium partners once
again brings new knowledge and enhances the organisational culture.
ABN AMRO is clearly creating and maintaining its learning culture through the adaptation of
cultural changes, through collaborative team work and through employee empowerment by
focusing on employee involvement as a work/life experience.
Concept 3: Innovation & Creativity
Innovation and Creativity is a main pillar in any Learning Organisation. Innovation and
Creativity will contribute towards pote ntial increased efficiency in an organisation provided
that its employees learn quickly how to adapt themselves to new technologies andinnovations in an effort to position the organisation in a competitive edge.
Social and Environmental Innovative Sus tainability
- A core strategy at ABN AMRO
Sustained Social and Environmental causes form an integral part of ABN AMRO Social
Responsibility business strategy.
The bank strives to include a concern for social and environmental issues in its decision -
making and encourages other businesses to create benefit in society. Through its lendingpractices, the bank seeks out and supports business activities that support social or
environmental causes. The innovativeness of this sustainability mindset has led to nume rous
activities that are creating a shift in the impact of ABN AMRO on both the environment and
society.
"Because banks are a part of society, we want our activities to reflect the needs and
problems of that society," says ABN AMRO manager Lucian Toia.
ABN AMRO involves employees to practice and promote exceptional philanthropy. In 2004,
over 15,000 employees were involved in various initiatives around the world such as the
Akatu project in Brazil which is a program that builds environmental awareness.
Through this initiative ABN AMRO as a Learning Organisation is helping employees enhance
their knowledge and skills in areas which are not related to their line of business, brining
new opportunities for personal development.
Worldwide Common Office Environment (COE) Deployment Project
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ABN AMROs COE Wholesale Client Services business brought innovation and new practices
for over 3000 Traders in the organisation with the objective of streamlining common
standards across its global business. This proje ct impacted 10 different countries being UK,
US, Netherlands, France, Germany, Hong Kong, Singapore, Australia, Japan and New Zealand
which are key to the ABN AMROs business.
The challenge was to provide user training with minimal impact on business opera tions and
without taking the user away from their desks for long periods of time.
This task was entrusted to ILX Group which is a specialist provider of customised training
and implementation solutions and services with considerable experience in the finan cial
sector.
ILX deployed a simple and unobtrusive global solution whereby users can self train with a
practical hands-on approach from their own PC through graphical step -by-step guides and
simple exercises.
This was a new learning experience for the organisation taking advantage of innovativetechnology as a Learning Organisation process.
(International Learning Xchange, Undated)
High-tech Training Platform - Pathlore Learning Management Solution
ABN AMRO has partnered with Pathlore to deploy a learning management solution in its
organisation. This solution enables employees to analyse their training needs and to receive
feedback on how to improve their performance. This solution also automates man y of the
employee development activities handled by a bank's training department such as the
registration of employees for training and the launching of courses. This gives the bank'straining team an opportunity to concentrate more on the evaluation of th e effectiveness of
its programmes and to create new and strategic training initiatives rather than wasting its
resources on Administrative tasks.
"The Pathlore learning management solution also handles the 'commodity activities'
associated with getting people into training - things like logistics and registrations." added
Pathlore CEO Steve Thomas.(Pathlore for high-tech training platform, 2004)
Again this solution engages the organisation in innovation, creativity and continuous
development as a Learning Organisation.
ABN AMRO Bank Introduces Service Innovations
Focus 2005 is a 5 year long-term plan with the objective of redesigning the organisation
for more effective customer service in an era where technological developments such as the
Internet are rapidly altering service requirements.
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"With this initiative and our investment in information and communications technology,
ABN AMRO Bank is further developing the successful formula of the integrated multi -
channel concept," says Managing Board member Mr. Rijkman Groenink, who heads the new
European Division.
The bank is investing considerably in Information Communication Technology giving the
organisation a competitive edge.
(ABNAMROBankIntroduces Service Innovations, 2005)
ABN AMRO Implement Compliant Business Processes and Create a Flexible User
Experience
ABN AMRO took the decision to change ABN AMRO Trust working practices in order to
create a more agile enterprise by improving its customer service. The goal was to enable
employees performing mu ltiple tasks through a single interface together with a common
customer information database. This required an integrated approach to its technology,
strategy and business processes, yet again bringing innovation and new learning challenges
to the organisation.
ABN AMRO opted for an IT solution named edgeConnect to reach its objectives through
which it was able to standardise its processes across each jurisdiction, providing each user
with a consistent way of working, regardless of location, business functi on or business role.
This solution ensures that the proper ABN AMROs KYC procedures (Know -Your-Customer
checks) are followed throughout the organisation. Furthermore, this technology provides
advice to employees on whether a potential client should be acc epted or rejected thus
enhancing the decision making process.
We could introduce more products to the existing client base with the same staff levels
because we could share information across ABN AMRO Trust as a single entity thereby
removing duplication of tasks, says Tony de Bree, former project manager, ABN AMRO
Trust.
(ABNAMROImplement CompliantBusiness Processes and Create a Flexible User Experience,
2005)
Innovation and creativity is a pillar in a Learning Organisation and it is clear that ABN AM RO
is second to none. Through innovative IT solutions ABN AMRO is facilitating learning andknowledge creation throughout the organisation.
Through the deployment of innovative solutions, ABN AMRO focuses on quality, creativity
and value innovation. The d eployment of new service innovations also streamlines common
standards across its business in an effort to fulfil global and legal obligations.
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Considerations
It is evident that ABN AMRO is a dynamic Learning Organisation which is always in search of
new opportunities for business growth. Living in an ever evolving environment,
organisations need to be pro -active, to anticipate change, to develop new ideas and to
manage resources with care. ABN AMRO recognises that its survival depends on continuous
development and innovation and creativity which can only be achieved through a never
ending learning experience. ABN AMRO is committed and is engaged in this Learning
Organisation process and from the research carried out we can conclude that ABN AMRO is:
y Building its organisation fit for human beings
y Creating a capacity for self-transformation
y Developing an entrepreneurial spirit
y Encouraging autonomy
y Encouraging innovation
y Ensuring employee morale and satisfaction
y Facilitating change and adaptation
y Harnessing creative energy
y Increasing responsibility at all levels in the organisation
y Making work more enjoyable and productive
y Mobilising every ounce of intelligence in the workforce
y Producing more with less
y Stimulating continuous improvement
y Striving for survival
y Switching on the brains of all employees
y Is in a Competitive Edge
y Using human talents to the full
all of which are characteristics of a Learning Organisation.
The main pillars of a Learning Organisation i.e. Continuous Improvement, Culture &
Innovation and Creativity are a living monument in ABN AMRO Bank which contributes
towards the organisations success, survival and potential future growth.
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Preeti:
Case Study 2: Creating a Learning
Organization Culture for Skills Transfer
The Challenge:
What do you do when your average age is 49 and your workforce is comprised ofhighly skilled technical engineering people? This succession nightmare forced aFortune 500 company to take a serious look at preparing for the future. They calle dThe Adele Lynn Leadership Group for solutions.
We knew that the workforce was highly experienced and independent minded. Theyprided themselves on individual contributions. We also knew that they believed thatthe younger generation of engineers were j ust not as motivated and dedicated asthey were. We also knew that the learning curve for the type of work these masterengineers performed was very long.
The solution:We knew that the key was to shorten the learning curve AND create a mindset thatallowed the learning to transfer between generations. We created a formal structuredmentoring program, complete with copious plans for data transfer, progress
measurement, and evaluation. (These were engineers and they valued thestructure.) But, central to the success of the mentoring assignments, we knew thatthe very culture of learning had to change or that the mentoring would fail. Weworked with leadership to help the mentors believe that this contribution was part oftheir legacy. Then, we worked extensively to give both the mentors and the menteesthe tools they needed to succeed. These tools included how to build trust in therelationship, how to transfer learning, how to respect differences in learning styles,and generational difference that could inte rfere with the relationships.
The Result:Nearly 100 new engineers have been hired and are in the mentoring process. Theseengineers are all assigned mentors and the mentor, the mentee, and the managersregularly hold discussions to evaluate the mentoring progress. The status of mentorhas created renewed enthusiasm for the mentors. Turnover rate for the newengineers is lower than at any other time in the last 10 years, and the company is inthe process of developing the talent they need for the future.
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