Introduction
The "Titanic syndrome"
>>How organizations change over time
Succumbing to the "Titanic syndrome"
The roots of the evolutionary organization
Principles of the evolutionary organization
The evolutionary organization-- an operational perspective
The evolutionary organization-- a management perspective
The evolutionary organization-- a new science perspective
A practical experience in building an evolutionary organization
Summary

(continued from The "Titanic syndrome")

How organizations change over time

The left side of Figure 1 presents simple curves relating organizational performance to time. This diagram is consistent with the original work of Lewin [18] on the dynamics of change, and its cultural elaboration by Schein [12]. As shown, particular life stages of a company (formative-normative-regenerative) can be associated with the different portions of the curves [12,19,20]. The right side of the figure shows the extent to which adaptive-generative knowledge is explicit or tacit in the organization. Adaptive-generative knowledge is that knowledge which the organization could leverage to survive in the face of change. This diagram, and the following interpretation, are reasonably typical of the life of a firm today. We call such a company a knowledge renewal organization (KRO).

First we examine the formative KRO. At point A1 in Figure 1, the founder has a vision of the "ideal" business and the organization to carry it out. At this point the KRO is borne. During the following period, the founder’s vision is clarified and made practical. Knowledge results from a mixture of type 1 and 2 learning processes [14]; respectively "learning to do things right", and "learning to do the right things". As shown on the right of Figure 1, adaptive-generative knowledge (including the vision) is made explicit through the ongoing vigorous tacit-explicit interchange of knowledge which is an extremely important attribute of a formative organization. By continuously tapping into its tacit adaptive-generative knowledge, the organization leverages this intangible asset for unique unassailable competitive advantage. Although the KRO is highly entrepreneurial, it displays a marked degree of employee alignment based on commitment.

Next we examine the normative KRO. At point B1 in Figure 1, the KRO has become established, resulting in the adoption of successful routines, norms, beliefs and cultural traits. As shown on the right of Figure 1, a mixture of tacit and explicit adaptive-generative knowledge exists in this phase, but knowledge involving "how things really operate around here" is becoming increasingly tacit. The KRO has become hierarchical and largely bureaucratic. There is a moderate to high degree of employee alignment based on conformity. Learning now involves the type 1 learning process [14].

Finally, we examine the obsolete KRO. At point C1 in Figure 1, a discontinuity in the KRO’s business has taken place. At this stage, the organization has become self-concerned and arrogant. Important day-to-day knowledge is wholly tacit and there is a high degree of employee alignment based on indifference. If the organization is aware of its looming problem, and is practising type 2 and deutero learning [14], then the KRO may develop a new paradigm beginning at point A2. This will include fresh goals and strategies for achieving them. Under these new conditions, as shown in Figure 1, explicit and tacit adaptive/generative knowledge will again be vigorously exchanged. The organization will once more be aligned through commitment. Assuming that the KRO successfully adapts to new conditions, it will advance along a regenerative curve through B2 to repeat normative-(obsolete)-regenerative phases until its final demise.

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The Saint-Onge Toolkit www.saint-ongetoolkit.com was released on November 1, 2001. It is an online learning platform containing rich media Powerpoint Presentations, a monthly seminar and Discussion Group that focuses on the core ideas of Hubert Saint-Onge's Knowledge Assets Strategy. $200US for a three-month subscription. It can be customized for a CKO's corporate knowledge strategy implementation.