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Sometimes these leaders have said to me, I have a best practice, and Jack Welch is coming to visit. Help me move the best practice around the company. I don t want to get caught with it alone when Jack arrives. The point is that the manager understands there will be no reward for having a good idea, only in sharing it with others.

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In a later chapter on tools and techniques, we will study Kerr s version of the Trotter matrix in greater detail. For now, we conclude that the learning organization model can offer excellent guidance for deciding on and implementing strategy. But Kerr s version of the model is very different from Senge s ideal of the learning organization: It has no systems analysis, no dialogue, no alignment. Kerr did involve everyone in the GE system at some point, but not to sort out their conflicting views, to develop a common vision of the future, or to learn everything about everything. Instead, everyone learned what worked. That kept the information that circulated down to a manageable volume. And you knew exactly what to do with the information when you got it: consider trying it yourself. Instead of ongoing dialogue, there was rapid communication on a narrow but vital topic: what worked. And instead of company-

wide alignment, there was group action on specific projects based on past achievement. GE did not row in a single direction, but in many directions at once, with units building on what worked in their own department, company, or team. Each group went along with a particular strategy not because dialogue had produced a shared vision of the future, but because the group saw that the strategy had a firm basis in past achievement. We use this case as an example of a complete learning organization based on what works like Napoleon s campaigns of the great captains. Note too that Kerr s activities resemble Kuhn s description of a scientific community, where scientists pay close attention to the achievements of other laboratories and adjust their own work accordingly. GE s size helped. It cut down Kerr s per-employee costs, and it ensured that there were plenty of worthwhile achievements to find. Smaller companies might not be able to do exactly what GE did. Yet the learning organization aims above all to help large companies overcome the ills of bureaucracy. Strategy based on expert intuition is much easier when you re small. But GE shows that it can work on a larger scale too, without being crushed by the bureaucracy. GE s version of the learning organization focused so much on what works that we might want to call it an achievement network instead. Achievement was both GE s subject of learning and the direct use for what they found. And the search for what works ends up being a network activity because it crosses so many organizational boundaries. From learning organization to achievement network: Welch, Kerr, and the Trotter matrix made that shift for GE.

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We turn now to another variant of the learning organization: organizational change. It too arose as a field in the 1990s as companies tried to change direction in one big push, using the concepts and tools of the learning organization. Thus, organizational change stands out as an explicit attempt to apply learning to strategy. In a 1995 article, Leading Change: Why Transformation Efforts Fail, John Kotter gave a gloomy report on the many organiza-

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tional change projects that were underway at that time14 He followed with a book, Leading Change, to help companies do better at organizational change15 There are many guides to organizational change, but Kotter s stands out as perhaps the most popular Let s look at what he says Kotter offers a series of steps to create major change First you establish a sense of urgency Then you put together a guiding coalition Next comes vision and strategy You communicate the change vision, empower broad-based action, get short-term wins, consolidate your gains, and make more progress Finally, you anchor the change in company culture Senge s fifth discipline, systems thinking, comes in during Kotter s second step The guiding coalition includes all the key people who need to be involved in order to make the whole system change In the third step, we see vision and strategy.

Figure 13.133 These blank extru-