Page 384 - Operations Strategy

hoW does learnIng ConTrIbuTe To sTraTegIC ConTrol? 359
such as product weight, telephone response time and so on. These can then be used to
alter input conditions, such as supplier quality, manufacturing consistency and staff
training, with the intention of ‘improving’ the output. In Chapter 7 we indicated how
such forms of control provide the learning that can form the basis for strategic improve-
ment. Every time an operational error or problem is detected, it is corrected or solved
and more is learned about the process, but without questioning or altering the underly-
ing values and objectives of the process.
Single-loop learning is of great importance to the ongoing management of opera-
tions. The underlying operational resources can become proficient at examining their
processes and monitoring general performance against generic performance objectives
(cost, quality, speed etc.), thereby providing essential process knowledge and stability.
Unfortunately, the kind of ‘deep’ system-specific process knowledge that is so crucial
to effective single-loop learning can, over time, help to create the kind of inertia that
proves so difficult to overcome when an operation has to adapt to a changing environ-
ment. All effective operations are better at doing what they have done before and this is
a crucial source of advantage. But while an operation develops its distinctive capability
only on the basis of single-loop learning, it is exposing itself to risks associated with the
things that it does not do well (see Figure 10.10).
Sustainable operations strategies therefore also need to emphasise learning mecha-
nisms that prevent the operation from becoming too conservative and thereby effec-
tively introducing delays and inappropriate responses to major change decisions.
Double-loop learning, by contrast, questions fundamental objectives, service or market
positions or even the underlying culture of the operation. This kind of learning implies
an ability to challenge existing operating assumptions in a fundamental way, seeking
to reframe competitive questions and remain open to any changes in the competitive
environment. But being receptive to new opportunities sometimes requires the aban-
donment of existing operating routines at certain points in time – sometimes without
any specific replacement in mind. This is difficult to achieve in practice, especially as
most operations tend to reward experience and past achievement (rather than poten-
tial) at both an individual and group level. Figure 10.11 illustrates double-loop learning.
An operation needs both the limited single-loop learning, so it can develop specific
capabilities, and the more expanded experience of double-loop learning. Single-loop
learning is needed to create consistency and stability. At the same time, operations

Figure 10.10 single-loop learning in operations and the potential limitations of
single-loop learning

Reduced performance of Performance objectives
Examine the performance Compare this performance operations processes
of operations processes against objectives less appropriate
Shifts in
technology,
processes or
markets,
leading to
Operations innovation Insights and capabilities improved
Operations Develop new insights less easy less useful
innovation and capabilities competitor
performance

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