Organizations in the 21st Century:
Knowledge and Learning—the Basis for Growth

Nov. 16-17, 2001 at the Social Science Research Center (WZB), Reichpietschufer 50, 10785 Berlin

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"Organizations in the 21st Century: Knowledge and Learning—the Basis for Growth" was held Nov. 16-17, 2001 at the Social Science Research Center (WZB) in Berlin, sponsored by the Gottlieb Daimler- and Karl Benz-Foundation.

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Conference Summary

Table of Contents

Introduction

About the Event

What is Organizational Learning?

Defining a Need

New Thinking

Cause and Effect

Theory to Practice

Between Three Worlds

Learning in the Private Sector

Learning in the Public Sector

Learning in the Academic Sector

Opportunities for Cross-Pollination?

Case in Point

Reconsidering the Variables

Diversity and Conflict

Learning with Power

Learning with Emotion

Learning Fashions

Learning from the Past and Future

Architecture for Learning

Organizational Theater

About the Author

 

Between Three Worlds

Learning in the Public Sector

There is as much need for paradigm changes in the public sector as in the private-sector, points out Prof. Peter Pawlowsky of Chemnitz University of Technology. In the same way that Frederick W. Taylor’s efficiency-oriented scientific management has proven itself obsolete in industry, bureaucratic administration is no longer working in government, he says.

Market forces and profit motives are important triggers for the learning taking place in business, encouraging effective knowledge management in many industries. They force individuals and organizations to evolve or risk extinction. Such mechanisms are not completely missing in the public sector. If you think of public and private sector managers as being focused on “outcomes,” political outcomes include results such as election votes and successful passage of legislative measures. But even the process of replacing bureaucratic leaders through firings or political leaders through elections is too slow to have the kind instant feedback advantage found in the private sector when managers can be sacked on the spot or when financial performance is immediately reported and reflected in share price.

Having served two British prime ministers as senior policy advisor in Downing Street and then as Minister of Agriculture under Tony Blair, Lord Bernard Donoughue highlighted mechanisms of learning and knowledge management in the UK public sector. The institutional knowledge of long-term civil servants insures continuity, for example, preventing paralysis even during times of political upheaval. Unfortunately, it also creates tremendous inertia that anchors the status quo. And when Tony Blair wanted to improve two-way knowledge flow for more access, more options and “more informed intervention” based on “knowing more,” policy and statistics units were established in all ministries, but they were rarely asked for information.

“As minister of agriculture, my experience was that management of knowledge was erratic and sometimes amateurish,” he says. Donoughue expresses frustrations at the difficulties he encountered using information to implement policy or trying to reform the ways in which knowledge was shared in government. Too often he found either insufficient information or insufficient access to existing information. Sometimes this was a result of passive ignorance, but active obstruction also was common, especially when it came to what he calls unwelcome knowledge.

“The history of past policy failures, especially BSE, produced a massive psychological defensiveness in the departments’ personality and a tendency to suppress information and knowledge that might expose more failures. Information embarrassing to departmental officials was frequently not provided to ministers,” Donoughue adds. “At a minimum, they saw new knowledge as inconvenient, because it might lead to change and that department preferred the short-term comforts of the status quo.”

Such political difficulties are hardly absent in the private sector, yet some of the most bureaucratic companies survive and thrive, LaPalombara notes. “What puzzles me is that the private sector has these same inefficiencies,” he says, “but they still make substantial profit.”

Identifying with Donoughue’s frustrations was Wolfgang Nowak, Director General of the Department of Political Analysis and Planning for Germany’s Federal Chancellery. But he points to slow, steady progress from the days when power meant not having to learn. New programs such as sabbaticals and transfers for lifetime civil servants to other areas create internal diversity. To overcome the “closed-shop” mentality of the German civil service, briefings by invited experts who present and discuss issues directly with Chancellor Schroeder bring in external knowledge. Programs exchanging bureaucrats for professionals industry and academia—or with civil servants in other nations is further accelerating the learning process.

Nowak also described a new problem getting in the way of organizational learning. Because the German press offers such big money to anyone willing to leak government documents, they are becoming an oral administration, which means there is ever less recorded memory of important issues.

Revised: 11/13/02. All contents copyright 2001 by Steve Barth, Wissenschaftszentrum Berlin für Sozialforschung (WZB), and individual authors. All rights reserved. For more information, please contact the Webmaster. Photographs by Peter Hinsel.