Professional Documents
Culture Documents
Assignment
Of
MGT527: Organizational
Change and
Development
Learning Organisation
A Learning Organisation is an organisation that learns and encourages learning among
its people in an effort to create a more knowledgeable and flexible workforce capable to
adapt to cultural changes.
Some definitions:
The basic rationale for such organisations is that in situations of rapid change only
those that are flexible, adaptive and productive will excel. For this to happen, it is
argued that organisations need to ‘discover how to tap people’s commitment and
capacity to learn at all levels’ (Peter Senge, 1990) and that “the pressure of change in
the external environments of organisations... is such that they need to learn more
consciously, more systematically, and more quickly than they did in the past... they must
learn not only in order to survive but also to thrive in a world of ever increasing change”
(Pearn, 1997).
The key ingredient of the Learning Organisation is in how organisations process their
experiences and how they learn from their experiences rather than being bound by their
past experiences.
The concept of organisational learning evolved from the individual learning process, but
organisational learning is not simply the collectively of individual learning processes, but
it engages interaction between:
Mintzberg (1987) says “the key is not getting the right strategy but fostering strategic
thinking”. Learning should be embedded in any organisational strategy in order to
survive.
The key ingredient of the Learning Organisation is in how organizations process their
managerial experiences. The ability of an organisation is not measured by what it knows
which is the product of learning, but rather by how it learns which is the process of
learning.
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 Holland’s
leading bank operating over 800 offices in Holland together with 2,600 worldwide offices
in 75 different countries with over 110,000 employees.
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.
• 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.
• Management programmes
• Leadership programmes
o e-Learning
o Products and Professional skills training
• 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
the organisation 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... We’re very close to
implementing intranet-based systems to bring training to people’s desks" said Judi
Davenport, Director of Training (Aggressive training key to ABN AMRO acquisition
success, Undated).
e-learning is an innovative learning solution and is the only way forward for a global
Learning Organisation such as ABN AMRO where staff is deployed worldwide.
Concept 2: Culture
Managing Cultural Change through Learning
One of ABN AMRO’s major strategies is the acquisition of Financial 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 today’s challenges.
"We’re 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 to ABN AMRO 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 addressing its Learning Organisation
objectives. (ABN AMRO Change Community, Undated)
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
cooperation with its new consortium partners Fortis, The Royal Bank of Scotland and
Sandanter, have joined their experiences to integrate and grow their businesses to their
full potential. The combination of the 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.
"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 potential increased efficiency in an organisation
provided that its employees learn quickly how to adapt themselves to new technologies
and innovations in an effort to position the organisation in a competitive edge.
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 lending practices, the bank seeks out and supports business activities that support
social or environmental causes. The innovativeness of this sustainability mindset has
led to numerous 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’s 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 project impacted 10 different
countries being UK, US, Netherlands, France, Germany, Hong Kong, Singapore,
Australia, Japan and New Zealand which are key to the ABN AMRO’s business.
The challenge was to provide user training with minimal impact on business operations
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
financial 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 innovative
technology as a Learning Organisation process.
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
many 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's training team an opportunity to concentrate more on the evaluation of
the 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.
“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.
"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.
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 multiple 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 function or
business role. This solution ensures that the proper ABN AMRO’s 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
accepted 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.
Innovation and creativity is a pillar in a Learning Organisation and it is clear that ABN
AMRO is second to none. Through innovative IT solutions ABN AMRO is facilitating
learning and knowledge creation throughout the organisation.
Conclusion:
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:
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 organisation’s success, survival and potential future growth.