March 20, 2001  Issue 10




"The thread that binds together the fabric of life is called relationships. Relationships exist to challenge us, to teach us, to inspire us, to guide us and enable us to participate in the splendor and beauty of life. They offer us an opportunity to give."
—Wendy Luhabe, South African entrepreneur and keynote speaker at the 2001 Systems Thinking in Action Conference

"Surely business leaders must eventually realize that they do have a choice. They can choose to either nurture or destroy humankind's place in the ecosystem. Business leaders can choose to either fashion organizations that trespass against nature's pattern or create organizations that blend harmoniously and constructively with the rest of nature, thus enhancing all life."
—H. Thomas Johnson and Anders Bröms in "Profit Beyond Measure"






Register by April 27th and save $300!


This year, the premier conference in systems thinking and management innovation focuses on "Harnessing the Power of Organizational Complexity." Featured keynote and forum speakers include South African entrepreneur Wendy Luhabe, who in 1999 was honored as one of the 50 Leading Women Entrepreneurs in the World; Peter Senge, author of The Fifth Discipline; conflict and stress management specialist Thomas Crum; executive development coach Greg Zlevor; Daniel H. Kim, cofounder of the former MIT Center for Organizational Learning and Pegasus Communications; and others.

Managers today, faced with information overload, need to know which organizational processes can help them sort through all the data and to acquire the knowledge they need to guide their actions. They need the skills to gather human knowledge from all corners of an organization. They need the wisdom to anticipate and defuse unintended consequences before problems result.

The 11th Systems Thinking in Action Conference will help you navigate through the potential hazards of organizational complexity and realize the rewards of harnessing its energy, depth, and richness. Bringing together the best minds in systems thinking, management innovation, and organizational design and development, the conference will break new ground in discovering the ways organizations can power into the future.

Past participants have said, "After attending this event for five years, I still find it an exciting push for the next cutting edge."

For more information about this exciting event or to register, visit the Conference Web site or contact the Conference Department at 1-800-272-0945 or 1-802-862-0095.

Team discounts are available
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April 11-12, Society for Organizational Learning's Sustainability Core Course, Milwaukee, Wisconsin

The Society for Organizational Learning (SoL) is offering a new program—the Sustainability Core Course—in partnership with Harley-Davidson Motor Company. Open to the public, this program outlines principles for developing a sustainable business coupled with principles of the learning organization. Faculty for the course include Joe Laur and Sara Schley, founding partners of SEED Systems, and Peter Senge. For more information, go to the SoL Web site.


To contact Pegasus, send an e-mail to info@pegasuscom.com, or reach us at:

Orders and Payment Offices:
Phone 800-272-0945/802-862-0095
Fax 802-864-7626
PO Box 2241
Williston, VT 05495

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Fax 781-894-7175
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Web site: www.pegasuscom.com

Pegasus Communications provides resources that help people explore, understand, articulate, and address the challenges they face in the complexities of a changing world. Since 1989, Pegasus has worked to build a community of practitioners through THE SYSTEMS THINKER™ newsletter, books, audio and videotapes, and its annual SYSTEMS THINKING IN ACTION® Conference and other events.


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FROM THE FIELD
Drastic Layoffs Don't Always Pay Off
SHOP TALK
What Are Some Tools to Help People Shift from a Short-Term to a Long-Term Perspective? and Reader Response to Introducing Group Bonuses
LEARNING LINKS
Integrating Organizational Learning and Knowledge Management: From an Interview with Peter Senge
 



FROM THE FIELD
Drastic Layoffs Don't Always Pay Off

Downsizing seems to be a trend today for how companies handle the challenges of efficiency and profitability. But according to Gary Chaison, professor of industrial relations at Clark University's Graduate School of Management in Worcester, MA, layoffs can have lasting negative consequences for a business.

In the process of shedding workers, management eliminates valuable assets. Chaison always reminds his students that a company invests significant time and money to recruit, select, train, and motivate workers. Given this level of investment, it makes little sense to then let these workers go. In fact, a company's financial difficulties seldom lie in excess staffing; success depends more often on a company's competition, how it's marketing itself globally, and what business models it's putting forward.

Unfortunately, what companies hope to gain in short-term benefitslower costs in anticipation of industry slowdowns or quick profits to impress investorsoften backfires over the long run. A company breaks its social contract with workers by laying them off. Employees' feelings of betrayal, resentment, and dislocation can affect their productivity. In addition, those who remain are likely to be less loyal and innovative than before and more likely to seek new employment opportunities.

How can we stop the spiral of layoffs that has become part of today's management strategy? Chaison says employers have to recognize the downside to downsizingrealizing that layoffs seldom save companies. To do so, they must ultimately change their assumptions about how a company survives and thrives in the new economy.

Source: "Is There a Downside to Downsizing? A Q&A with Professor Gary Chaison on a New Corporate Trend," The MetroWest Daily News, Sunday, February 11, 2001

Readers who wish to discuss this topic are invited to go to
the Systems Thinking Forum.

 



SHOP TALK
Most of our organizations and societal structures are oriented toward short-term fixes, without taking the long-term implications into account. What are some specific tools or methods we can use to help people shift their approach from a short-term to a long-term perspective?

Please take a minute to share your thoughts about this issue in the Systems Thinking Forum.

Selected comments will be shared in a future issue of LEVERAGE POINTS.

FROM ISSUE #9
Team Bonus Program

I am a consultant in Zurich and currently in contact with a fairly large hospital in Europe that wants to introduce a group-bonus program to honor interdisciplinary team efforts (e.g., doctors, nurses, technical personnel in operating rooms). Does anyone have field experience on this subject?
Juerg Kuster


Consider giving 25% (or so) of a team bonus to an individual member of a team who contributed most to fostering the team's dynamics. This person will be chosen by members of the team
not by some management "outsider." They will determine not the individual who "did more" or "produced more," but the one who, for this period of time, fostered the team synergies more. Timing-wise, distribute this "individualistic" bonus along with the team bonus. Encourage the group, but recognize the catalysts in the group and those striving to be catalysts.
David L. Hanson, Ph.D.
Consulting Psychologist
Synergistic Psychology Associates, P.A.
Charlotte, NC

As the administrative director of the AIDS Center at Montefiore Medical Center with a multidisciplinary team of over 50 healthcare professionals serving over 1,700 adult HIV-infected patients, I have an interest in your query. In our setting, however, we are constrained because some of our team members are under union contract, which prohibits bonuses. This contract does not apply to management or physicians.

What we have done is to offer team retreats (all expenses paid) and provide a generous reimbursement policy regarding team members' professional conference expenses. Obviously, this is not sufficient. I would welcome additional suggestions.
Eli Camhi


Readers who wish to view the complete responses to this question or to continue this discussion are invited to go to the Healthcare Community Forum. Selected comments will be shared in a future issue of LEVERAGE POINTS.
 



LEARNING LINKS
Integrating Organizational Learning and Knowledge Management: From an Interview with Peter Senge
by Lauren Keller Johnson

In the business world, some observers claim that "knowledge management" is the wave of the future; others think that it's an idea whose time has passed. But there's been little discussion of how knowledge management may coordinate with and support existing corporate initiatives, such as organizational learning.

According to Peter Senge, author of The Fifth Discipline, knowledge management historically consisted of capturing, storing, and retrieving information. But knowledge is less a thing than a process; it is "the capacity for effective action." Senge says that knowledge is "generated" when someone learns to do something better; when that person shares these new learnings with others, who then also improve their effectiveness, knowledge gets "diffused." These two processes occur most frequently in informal settings—through the interactions of people as they do their work. Thus, we can think of knowledge management as ways in which we enable and enhance the generation and diffusion of new learning, in other words, how working teams transform their capabilities in order to produce desired outcomes.

How does organizational learning fit in? Its emphasis on improving learning capabilities supports internal networks— where knowledge gets diffused—in functioning effectively. It also helps managers overcome impediments to knowledge management, such as cultural differences, competition, and information hoarding. Knowledge management, in turn, can expand the focus of organizational learning from small groups to larger networks. Integrated together, the two have the potential to support large-scale change in our organizations.

Read the complete source article or see LEVERAGE, No. 34, October 1999.

Readers who wish to discuss this topic are invited to the Knowledge Cafe Forum.

 


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