October 28, 2010

How to create a small business?

Making Organizational Learning Cycle in practice...

We have finished the learning of organizational learning cycle. There is a question here : whether we can use  this cycle  to create a small business? Maybe ... 

In practice, how to create a small business?

Step1: Inspiration. (Collect information)

Someone was inspired by input information or collected information from external environment or internal environment, accordingly he or she wants to create a small business.

Step2: Producing new ideas

Someone produces several new ideas about his or her small business, like he or she wants to open a coffee shop, a fashion shop, an educational institution and so forth.

Step3: Making a right choice

Someone finally chooses an educational institution and he or she hopes this institution is a learning organization

Step4: Action

Someone starts to take action on how to create a learning organization

Step4.1: Seeking special partner to set up a learning organization together.(collect information)

    How to choose candidates?

    Seeking candidates based on the following conditions:

a)      Ethic & ability

Future partners should have both ethic and abilities. When need to choose between moral and abilities, moral priority. If someone who is high performance but lack of honesty and attachment, it is not necessary to choose him or her. That is because he or she will bring about negative events to his or her partners and organizations. Losses from his or her outweigh benefits.

b)      Similar values of life

Values of life will affect his or her behavior in many ways, which will directly influence organizational behaviors. Additionally, if some individuals have similar views of life and similar views of world, it is easy for them to communicate their real heart. It is beneficial to reduce communication barrier and minimize misunderstanding at the crucial moment.

c)      Common goal

Common goal is a necessary prerequisite for collaboration. For a common goal, human, material and financial resources can be maximized use or be played a largest role. Clear and common goal has the power to centralize all sorts of resources.

Step4.2: Brainstorm/Discussing (produce new ideas)

Somebody could engage in the interviews on communication and discussion among conditions, and then choose the special partner in the light of ethic & ability, similar values of life, common goals and relevant context. Relevant context is important for conditions. For example, if student who has arts or law context and without any engineering context, I think it is difficult for him or her to apply MBE. Certainly, it is the general situation. If someone who is talent maybe can apply, too.

Step4.3: Making right choice/decision

Through communicating and discussing with candidates, he or she has chosen the unique partner. And then they do a long-term plan or strategy for their future in order to reach the good ending of win-win.

Step4.4: Action

The unique candidate take responsible action depend on PDC(S) A system

step4.4.1: Plan

A unique candidate needs to do a detailed plan or strategy in order to create a learning organization.

How to create a learning organization?

Step4.4.2: Do

a)      An exciting vision links followers together. Organizational goals are a complement to personal goals. Personal goal is not necessarily the organizational goals, but the achievement of organizational goals is contributed to achieve personal goals.

b)      Through inspiration stories, innovation symbols, and history of organization to build organizational culture. Actually, organizational culture is a belief or value, like "if you want to change, you need to learn more".  If this belief was agreed and accepted by followers, it is easy to become a learning organization. Organizational culture interact organizational behaviors.

c)      Designing a reasonable and effective structure. The combination of horizontal structure and vertical structure are contributed to an efficient management. A horizontal structure is able to instantly exchange ideas and share information among sectors/ departments or within mini-organization. A vertical structure can make a right decision as soon as possible.

d)      Setting up a feedback system.

First, from down to up (reflection of good or bad problems)

Then up to down (suggestion and comments)

Third, from different departments/sectors (discussing, sharing views)

Finally, from up to down again (make a right decision then execute it)

From above feedback system, it is not difficult to find that a feedback system help organization to discover problems and solve problems as soon as possible. In other words, the establishment of feedback system advances the developing of a learning organization. If necessary, training could be allowed in this stage.

e)      Technical support & services

A learning organization needs technical support to improve learning skills. Good services can reduce unnecessary waste of time and increase satisfaction of followers/employees.

Step4.4.3: Check/Study

What should we do in this stage?

I think we should consider external environment and internal environment:

External environment: Getting information from customers, suppliers, and stakeholders in order to meet their needs as much as possible.

Internal environment: Balancing and sharing human, market and financial resources in order to reduce waste of resources and increase utilization of resources.

Step4.4.4: Act

In this stage, managers learn how to manage by process. Manage by process,acutally manage by people.  


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