Tài liệu Building a learning organization the case of logigear vietnam

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ TP. HỒ CHÍ MINH ----- oo0oo ----------------- VƯƠNG BẢO LONG BUILDING A LEARNING ORGANIZATION – THE CASE OF LOGIGEAR VIETNAM LUẬN VĂN THẠC SĨ KINH TẾ TP. HỒ CHÍ MINH – NĂM 2017 BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ TP. HỒ CHÍ MINH ----- oo0oo ----- VƯƠNG BẢO LONG BUILDING A LEARNING ORGANIZATION - THE CASE OF LOGIGEAR VIETNAM Chuyên ngành: Quản trị kinh doanh (eMBA) Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ KINH TẾ Người hướng dẫn khoa học: TS. Lý Thị Minh Châu TP. HỒ CHÍ MINH – NĂM 2017 STATEMENT OF AUTHENTICATION I hereby declare that the work presented in this thesis is, to the best of my knowledge and belief, original. The ideas and quotes taken from external sources are duly acknowledged in the text. The material, either in full or in part, has not been previously submitted to any other institution. Ho Chi Minh City, March 31, 2017 (signed) Vuong Bao Long Table of Contents Secondary Cover Page Statement of Authentication Table of Content Table of Figures List of Tables Abstract ............................................................................................................................................. 1 Chapter I - INTRODUCTION .......................................................................................................... 2 1.1 Rationale .................................................................................................................................. 2 1.2 Problem Statement ................................................................................................................... 6 1.3 Research Questions ................................................................................................................ 10 1.4 Research Objectives ............................................................................................................... 10 1.5 About LogiGear ..................................................................................................................... 11 Chapter II - LITERATURE REVIEW ............................................................................................ 14 2.1 What is “Learning”?............................................................................................................... 14 2.2 What is a “Learning Organization”? ...................................................................................... 17 2.3 Knowledge and Knowledge Management ............................................................................. 23 2.4 Innovation and Innovation Competence ................................................................................ 25 Chapter III - RESEARCH METHODOLOGY ............................................................................... 30 3.1 Data Collection ...................................................................................................................... 32 3.2 Participants in Interviews - Key Stakeholder Groups ............................................................ 32 3.3 Data Analysis ......................................................................................................................... 38 3.4 Research Model...................................................................................................................... 41 Chapter IV - FINDINGS & DISCUSSIONS .................................................................................. 42 4.1 Personal Mastery .................................................................................................................... 43 4.2 Mental Models ....................................................................................................................... 46 4.3 Shared Vision ......................................................................................................................... 47 4.4 Team Learning ....................................................................................................................... 49 4.5 Systems Thinking................................................................................................................... 52 4.6 Technology............................................................................................................................. 56 4.7 Summary of Findings & Discussions..................................................................................... 60 4.8 Framework Suggestion .......................................................................................................... 63 Chapter V - CONCLUDING REMARKS ...................................................................................... 74 References Appendices Table of Figures Figure 1.1- Scope of Research .............................................................................................. 6 Figure21.2- Transforming to a Learning Organization ....................................................... 10 Figure31.3- TestArchitect, the automation test tool of LogiGear ........................................ 12 Figure42.1- Single-Loop Learning and Double-Loop Learning ......................................... 15 Figure52.2- Triple-loop learning by Asian Development Bank .......................................... 15 Figure62.3- Kolb's Experiential Learning Style .................................................................. 16 Figure72.4- Three-leg Model for Learning Organization .................................................... 19 Figure82.5- Overall model of a learning organization ........................................................ 20 Figure92.6- A Framework for Understanding Tacit Knowing ............................................ 24 Figure103.1- Description of data collection and data analysis ............................................ 40 Figure103.2- Research Model: Elements That Construct Learning Organization .............. 41 Figure114.1- Sarder’s Principle: Two Percent of Revenue to Learning and Development 55 Figure124.2- Framework for Building “Learning Organization” for LogiGear VN ........... 64 Figure134.3- Org. Chart of the "Learning Organization" Task Force ................................. 72 Figure144.4- The Action Plan to Build A “Learning Organization” ................................... 73 List of Tables Table11.1- Diagnosis Report of LogiGear’s Learning Culture ............................................. 9 Table21.2- Ranges of Services by LogiGear VN ................................................................ 12 Table33.1- Five Disciplines by Peter Senge ........................................................................ 31 Table43.2- Data Collection - Interview Coding & Demographics ...................................... 35 Table53.3- Data Collection - Focus Group Coding & Demographics ................................ 37 Table64.1- Factors that construct Learning Organization in LogiGear ............................... 61 Table74.2- Qualtrics for Learning Organization ................................................................. 71 1 BUILDING A LEARNING ORGANIZATION – THE CASE OF LOGIGEAR VIETNAM Abstract This research is to find the factors that contruct a “learning organization” for LogiGear Vietnam, an information technology company. In the backdrop of the Five-Discipline Model of “Learning Organization” by Perter Senge, the author employed a qualitative method to collect and analyze data from in-depth interviews and focus group with all three levels of staff in the company, being software engineers, middle layer managers, and top executives. The result revealed that Senge’s five disciplines (Personal Mastery, Mental Minsets, Shared Vision, Team Learning, Systems Thinking) do exist in LogiGear VN together with the 6th discipline, “Technology”, found as an emergent finding. The research is specific, designed and carried out in order to explore and suggest a model to build a “Learning Organization”, the case of LogiGear Vietnam. Keywords: learning, knowledge, learning organization, innovation, information technology, LogiGear Vietnam. 2 “The ability to learn faster than your competitors may be the only sustainable competitive advantage.” - Arie P. De Geus Head of Planning for the Royal Dutch/Shell Group of Companies Chapter I - INTRODUCTION 1.1 Rationale LogiGear VN is an information technology company, specialized in software testing and software development. Doing business in a fast changing, fast developing industry where technological change takes place almost every minute, it has no other way than to become most adaptive to change and most innovative in providing solutions and services to customers in order to succeed. Learning from success stories from tech giants Apple, Google, Amazon, Netflix, etc. the board of management of LogiGear VN found out that innovation is the key. And, innovation should not be expected from a single genius, happening over night, or appreaing in an “aha!” moment, but it’s “a result from hard and focused work” (Drucker, 2015). Nowadays, “innovation discipline is still in its infancy, but competencies that increase chances of innovation can now be learned.” (Bezerra, 2005) The Fourth Industrial Revolution (4IR) - of which the emerging technology breakthroughs in fields such as AI, IoT, robotics, 3D printing, and nano technology prevail - urges companies to learn faster, produce faster and deliver faster using new technologies that are merging the physical, digital and biological worlds (Schwab, 2016). LogiGear VN is not an exception and cannot be staying out of the circle of influence, when it is an IT/software company with goal to be leading in its industry, software testing and development. In order to pursue the vision and achieve its strategic goal to become a transformational organization, LogiGear VN needs to be innovative first hand and deep down it must become a “learning organization”. 3 In a seminar on innovation leadership in Ho Chi Minh City in 2013, Prof. Tony Wagner of Harvard Business School articulated that if labor was a commodity in the industrial age and knowledge was a valuable asset, it is now innovation that creates quantum added value that ensures competitive advantage for sustainable growth and development. He said, the imperative was true not only at corporate level like the cases of IBM, Intel, Apple, Google, etc., but also at state level such as Israel, Sweden, Switzerland, Norway, USA, Japan, etc. Not long ago, World Bank and Ministry of Planning & Investment of Vietnam have stressed that “boosting the learning and innovation in order to maintain a high and sustainable growth needs a radical reform program.” (WB & MPI, 2016) For a country to thrive, enhancing productivity using innovation competence is the ultimate solution (Porter, 1990). For firms, innovation competence increases their competitive advantage (Tidd & Bessant, 2015). Nguyen Van Dung and colleagues (2016) emphasize the importance of innovation in a knowledge economy. They examine the role of different components of knowledge economy in economic growth and other factors such as innovation, education, etc. that simultaneously affect economic growth of 37 countries in Asia during 1990 – 2014. The research confirms that “there exists a positive association between economic growth and four components of the knowledge economy framework”, which are innovation, education, ICT infrastructure, and natural resources intensity. Nadeshwar and Jayasimha (2010, p. 182) wrote “while all people have the capacity to learn, the structures in which they have to function are often not conducive to reflection and engagement. Furthermore, people may lack the tools and guiding ideas to make sense of the situations they face”. As to Senge, for a learning organization, ‘adaptive learning’ must be joined by ‘generative learning’ and double-loop learning that enhances our capacity to create.” (Senge, 1990, p. 13-14) 4 Indeed, to compete and win in the context of increasing globalization, integration, and rapidly evolving technologies, individuals and organizations have no way other than building their ability to learn – the cornerstone for continuous improvement, operational excellence, and innovation. Hess agreed that “companies that learn fastest and adapt well to changing environments perform the best over time.” (Hess, 2014) Bersin (2012) quoted in his article “5 Keys to Building a Learning Organization” that the worldwide corporate training industry valued at 135 billion US dollars, but “companies now realize that they simply cannot find the skills they need in the workforce and have to reinvest heavily in corporate training… Should companies go back to the 1980s and build a corporate university again? The answer is no. Today the world of corporate training has been revolutionized.” (Bersin, 2012) He suggested 5 keys to build a learning organization, which are: (1) corporate learning is "informal" and HR doesn't own it, (2) Promote and reward expertise, (3) Unleash the power of experts, (4) Demonstrate the value of formal training, and (5) Allow people to make mistakes. He believed “The best organizational learning (and individual learning) occurs right after you make a huge mistake.” And most interestingly was his recent assertion on Forbes.com March 09, 2017 of AI1 and cognitive computing that change the way corporate people learn: “Thirty-eight percent of companies in our new research (10,400 respondents from 140 countries) believe that robotics and automation will be "fully implemented" in their company within five years” (Bersin, 2017). Although there would be a long way for robotics to fully replace men in learning, the possibility it comes true is not petite. Innovative organization should start from being a learning organization. This means a simultaneous visionary transformation and involves all levels of resources (individual, team, and organization itself) along the process of the organization’s development. (Senge, 1990) 1 AI – Artificial Intelligence 5 As an information technology company, LogiGear’s workforce comprises of 99% knowledge workers who are software engineers, a kind of “knowledge workers” whose main capital is knowledge and whose job is to "think for a living" (Davenport, 2005). Crabtree et al. (1997) reveals that knowledge workers spend 38% of their time searching for information. Loo (2017) suggests a definition of creative knowledge work from four specific roles: copywriting, creative directing, software programming, and systems programme managing in advertising and IT software. He finds out “Creative knowledge workers use a combination of creative applications to perform their functions/roles in the knowledge economy including anticipatory imagination, problem solving, problem seeking, and generating ideas and aesthetic sensibilities” (Loo, 2017, p. 138). LogiGear VN values continual learning and endlessly encourages employees to learn for good, individually and collectively. Down to earth, in the kick-off meeting in early January 2017, the CEO of LogiGear VN restated and committed to make LogiGear VN “a transformation through innovation”. Knowing that in order to reach the fame of innovation, which is believed the concrete foundation for shifting it to new heights, LogiGear VN has to first of all be a learning organization. A great advantage for LogiGear VN is that their top executive leaders strongly support learning. They are typical examples of people who regard on-going learning and researching as a lifetime aspiration. They are frequent speakers in seminars, conferences, forums of information technology around the world. They are authors/editors who have books published internationally, some of which are bestselling books in their field. LogiGear VN sets to gain an organizational transformation in 2018. A transformation that best satisfies its customers, creates an innovative/self-driven workforce, and accommodates for a sustainable business development. In order to ensure the success of such a transformational shift, the company acknowledges it 6 has a multiple agenda to proceed. This research focuses on the block of “learning organization” (Fig. 1.1). Process - Personal mastery - Mental models - Shared vision - Team learning - Systems thinking Learning Organization Innovation Transformation - Customers’ satisfaction - Innovative, self-driven workforce - Sustainable business growth Knowledge Management Figure 1.1- Scope of Research Source: Adapted from Tidd and Bessant (2015), Rothwell (1992), Senge (1990, 2006), Schumpeter (1934, 1939, 1942) 1.2 Problem Statement Since 2015, triggered by market demands (agile deliverables, more cost effective, better quality), technologies (shorter product life-cycles, new framework and methodologies, etc), and internal dynamics such as optimizing workforce, business re-model, corporate portfolio shift (Worley & Cummings, 2009), LogiGear VN has been facing the demand for a transformational change. Although LogiGear VN sets and carries out its mission “to provide leading-edge software testing technologies and expertise to customers” (LogiGearVN, 2016), it could hardly compete with other rivals in the industry. The number of sales closed has dropped significantly in recent years; customers have been lately leaving for other providers who could offer more advanced technological solutions (faster speed, higher performance, lower price). The new capabilities of workforce are not improved up to the speed of new changes in technology and customers’ demands. Since its commencement in 2005, there were innovative improvements in methodologies, frameworks, processes, and 7 some initiatives, but all were carried out in such a small scale that was not sufficient enough to generate radical transformation in LogiGear VN. The company filed and got registered patent for TestArchitect®, an automation testing tool; and the ABT®2, a methodology in software test automation, but those were just two single cases. Technology rapid change requires every tech company to fast adapt with it and to be ahead of trends. Taking “cloud” trend for example, LogiGear VN has been remodelling its business, which is able to switch from the PC, local-based software testing to cloud-based software testing and cloud-service-delivery. In order to accommodate for this transformation, the engineers’ job role and skill sets are required to be changed. They are more deeply and globally connected to the “cloud” world and interacting together in real time. If they work on projects that employ AWS or IBM cloud server/service, they should be first of all qualified by Amazon and IBM for a various range of professional certificates. Figure21.2- Technology Changes Job Role/Skill Source: LogiGear VN’s training materials 2 ABT – Action-based Testing 8 Recent diagnoses on Dec 31, 2016 and June 30, 2016 using Harvard’s tool los.hbs.edu show that there is a serious problem in exercising “learning culture” of the company. The survey tool is a questionnaire by Harvard Business School, including 10 criteria designated into 3 groups. In particular, the surveyed result shows 7/10 elements of “learning organization” fall below average score and tend to significantly decline: Psychological Safety: They remain unchanged 62.9 and 62.9 in the latest two surveys, and lower than median score, 76. Appreciation of differences: remain unchanged 57.1 and 57.1, and lower than median score, 64. Openness to New Ideas: although increased double in the recent survey from 32.1 (Jun 30, 2016) to 64.3 (Dec 31, 2016), but it is very much lower than median score, 90. There is improvement but still a long way to go to innovation. Time for Reflection: 65.7 and 42.9 respectively. It is not very much far below the median, 50, but there was a significant drop that the management should closely look into. Analysis: 60.0 and 54.3, pretty low compared to 71 median. There is almost no debate, argument, feedback, active and multi-aspect communication. Learning organizations really fear of “no conflict” and disagreement. They fear of no feedback and idea. Education and Training: not very much lower than median, 80; but dropped from 78.6 to 71.4. This is alarming. Leadership that reinforces learning: 40.0 and 47.5, significantly low compared to 74 as median. This is a serious issue that needs to be urgently addressed, whether it is the mindset or competence, at the manager or leader level. Postively, there are three elements that stand higher than average level: 9 Experimentation: Increased from 57.9 to 82.1, an extreme jump over the median, 71. Information Collection: Increased from 60.5 to 81.0, a significant jump over the median, 80. Information Transfer: Increased from 57.1 to 75.0, a little higher than median, 71. The 7 declining elements seriously impact to the value of “learning organization”. It releases a strong warning siren that the board of directors of LogiGear VN needs to immediately take action to address the nearly happening catastrophe before being late. Table11.1- Diagnosis Report of LogiGear’s Learning Culture Source: Garvin et al. (2008) Furthermore, software technology is changing fast and LogiGear VN should not be left behind. It needs to be technologically staying abreast of trends. The other challenge is to find more innovative ways to create “blue oceans” (Kim & Mauborgne, 2005) in order to lead and win. Acknowledging the reality and 10 perceiving that innovation is the key for building competitive advantage which guarantees a flourishing existence and sustainable business development, the company set high priority to transform itself to learning organization. Current Organization (Job description driven) Learning Organization (Personal mastery, mental models, shared vision, team learning, systems thinking) Figure21.2- Transforming to a Learning Organization Source: Dull (2016) 1.3 Research Questions What are the key elements that construct a learning organization, specifically for the case of LogiGear VN? And; What framework can be deployed to build LogiGear VN a learning organization? 1.4 Research Objectives The research focuses on exploring key elements that construct the learning organization, the case LogiGear VN, an information technology company; and suggests a framework to build LogiGear VN a learning organization. 11 1.5 About LogiGear Establishment LogiGear Corp. (www.logigear.com) was founded in the Silicon Valley in 1994 by top thought leaders in the software testing industry. Since then it has completed software testing and development projects for prominent companies across a broad range of industries and technologies. The headquarter continues to be in Silicon Valley, California with a majority of the software testing and software development staff based in Ho Chi Minh City and Da Nang, Vietnam, established 2004 as “LogiGear VN”. The total headcounts of LogiGear VN is 500 as at the end of 2016. LogiGear Corp. continues to grow as companies realize the benefits of outsourcing their software testing and development. It is honored by Inc. 500|5000 as one the fastest growing private companies in the USA in 2009, 2012, 2013, 2014. Vision and Mission LogiGear VN aims at becoming the world leading software testing and development service provider. The company “provides leading-edge software testing technologies and expertise, along with software development services that enable our customers to accelerate business growth while having confidence in the software they deliver.” (LogiGear VN’s website www.logigear.com) Products and Services Products LogiGear VN’s product is the test automation tool named TestArchitect®. It is an ideal test automation solution for high-volume test automation production. It lets you quickly develop a large volume of easy to maintain automated tests—using the tool’s built-in actions that eliminate coding. 12 Figure31.3- TestArchitect, the automation test tool of LogiGear Source: LogiGear’s website (www.logigear.com) A single, plain text, action-based test replaces multiple lines of code, which speeds testing and makes it possible to update 10’s or 100’s of tests by replacing just a few actions. It is easily integrated to popular management tools, like JIRA, Zephyr, Microsoft TFS and HP Quality Center extend end-to-end test management on desktop, web/cloud, and mobile devices. The product can be explored at: http://www.testarchitect.com/features.html Services LogiGear VN provides both automated and manual software testing services using its talents, expertise and tools to deliver clientss applications and products with the faster time-to-market, measurable improvements in quality and cost reduction. The services range from on-demand manual testing resources by individual testers or dedicated teams, to fully-managed testing services where the company takes full responsibility for testing projects. The automation experts can work with client’s preferred automated software testing tool, or LogiGear VN’s tool TestArchitect, to conduct automated testing on a large-scale. Table21.2- Ranges of Services by LogiGear VN Source: LogiGear VN’s website 13 Markets & Clients North America (US, Canada) is the principal market of LogiGear, where 90% of the clients based. Other clients are in Europe, Japan, and Australia. Since commencement, LogiGear VN has been completed more than 3,000 projects with millions of test cases and solutions for a rich variety range of industries: aerospace, automobile, oil & gas, banking, insurance, education, healthcare, games, mobile application, etc. LogiGear VN sets goal to transform itself through “learning organization” The recent market demands, technologies, and internal dynamics urge LogiGear VN to be more adaptive to changes, more innovative in developing its products and services so as to compete and advance in the software testing industry. More seriously, the number of sales has dropped and customers have been leaving impacting much to their existence in Vietnam. They need to gain new competivive advantage in terms of cost effectiveness, market lead-time, quality, and sustainable scalability of human resources. Having perceived the urgency of the matter, the CEO and the board of management of company have been designing and executing a scheme for transformation that takes the work of building a “learning organization” for LogiGear VN as a key cornerstone in the recent years. 14 Chapter II - LITERATURE REVIEW Sarder (2016) says successful organizations such as Google, GE, Columbia University share many characteristics in common, one of which is a vital characteristic: “They are learning organizations, able to remain competitive and continue growing in a rapidly changing global environment. They value, promote, and support learning at all levels and have learning plans and systems the enable them to translate that learning into action.” (Sarder, 2016, p. 31) 2.1 What is “Learning”? By the online Oxford Dictionaries, learning is “the acquisition of knowledge or skills through study, experience, or being taught”. Learning, education and training are popularly used as equivalent substitutes to each by many organizations. However, there are important distinctions between the terms. Education and training are processes that may lead to learning. Learning is the outcome or result of a learning process. Argyris and Schön (1978, p. 2) suggested “learning involves the detection and correction of error. Where something goes wrong, it is suggested, an initial port of call for many people is to look for another strategy that will address and work within the governing variables. In other words, given or chosen goals, values, plans and rules are operationalized rather than questioned.” This is called single-loop learning (Argyris and Schön, 1974). And, an alternative response is to question to governing variables themselves, to subject them to critical scrutiny, is called double-loop learning. Such learning may lead to an alteration in the governing variables and, thus, a shift in the way in which strategies and consequences are framed. In other words, double-loop learning occurs when error is detected and corrected in ways that involve the modification of an organization’s underlying norms, policies and objectives.