In the search for strategic competitive advantage, the importance of learning and knowledge is increasingly recognized. In this paper, we identify four domains synthesized from the literature -multi-dimensional goals, using tacit knowledge, continual learning, and shared vision -that impact upon and provide a framework for developing strategy. Three themes are drawn from learning organization literature linking to a fourth from strategy literature. These domains are brought together in a holistic model proposed for use by managers in evaluating and developing strategy -'The Learning Square'.
The shift to a knowledge-based paradigm of management demands new conceptual tools for decision-makers. Unfortunately, as writings on organizational learning and`l earning organizations'' have grown their clarity and focus have reduced, creating difficulties for managers who seek to apply these ideas. We propose a conceptual`L earning Square'' with four mutually reinforcing domains ± Multi-dimensional goals, Using tacit knowledge, Continual learning, and Shared vision ± that simplifies the issues. We illustrate the idea by analysing four critical episodes in the development of IS (information systems) within one firm that followed the trends of the last decade, towards corporate downsizing and radical business reengineering. We show how these policies often failed to engage with issues of learning and the use of people's tacit knowledge. Managers can evaluate their decisions against the criteria of the Learning Square to improve the effectiveness of competitive strategies.
The history of a major steel company's executive information system (EIS) is reported from its inception in 1984, through its demise as a system for top management, to its transformation in 1991 as a strikingly successful information system for all managers and administrative staff. This case has significant implications for all those who are interested in providing technical support to top decision-makers. It also has important lessons for any organization that has an EIS or that is planning to implement the current generation of EIS technology.
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