Strategy and the learning organization: a maturity model for the formation of strategy

Abstract

PurposeTo develop a theoretical model for strategic change that links learning in an organization to the strategic process.Design/methodology/approachThe model was developed from a review of literature covering a range of areas including: management, strategic planning, psychology of learning and organizational learning. The process of forming and implementing strategy in an organization was looked at critically and then the links between learning and strategy were explored, particularly in relation to innovation and radical strategic change.FindingsThe degree of correspondence found across various strands of the literature implies a general principle: that the development of strategy is closely linked with learning. The paper proposes that, if appropriately designed, purposeful strategic activity will help to develop an organizational learning culture. As the strategic planning process is widely accepted across all sectors of the economy, it has the potential; to provide an effective means of directing resources in order to achieve desirable learning within an organization towards its long‐term viability.Originality/valueThe paper develops a theoretical model of strategy formation, called “The maturity model for strategy formation”, which describes a developmental continuum for strategy based on the application of appropriate strategic approaches which are linked to suitable learning approaches and a consideration of the roles of management and staff in the change process.

How organizational learning affects a firm's flexibility, competitive strategy, and performance

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