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93 of 98 people found the following review helpful:
5.0 out of 5 stars
positively excellent, March 24, 2004
All too often, I find myself acting cynically about my field and ready to dismiss just about anything as mediocre, no matter how popular or praised. Well, this is one book that I think is really excellent - for content, for clarity, for sincerity, for the stories reported in it. When I plow through a business book, I try to see if I can remember the central ideas, the essence of what the author has to say from the mass of details and stories that make up every business book. Most often, they are appalingly banal and pathetically over-applied, touted as able to solve just about every problem, in particular if a fee is paid to the authors to come and talk about it in person. I was preparted to treat this book the same way, and was simply delighted to find a truly excellent and useful book. And gee, I am glad that I can get inspired by a book in my chosen field, rather than bored! As I see it, this book has three principal ideas. First, we must think of organizations and their missions as complex systems rather than as conglomerations of isolated problems. It is pitch for the development of a holistic view - how everything interacts and what factors act upon what other factors. This is an analytical tool that can pinpoint what should be done, breaking mental habits of looking only at the bottom line of sales revenues, for example, rather than the need to provide better service or delivery times. Second, employees must be empowered to make their own decisions locally, requiring honesty and openness throughout the organization as standard practice. This enables them to question and learn, not just individually but as part of a unified team, hence the subtitle of a learning organization. Mistakes are part of this process and should be allowed as valid experiments. Third, the task of a leader is to design an organizational system within which this can all be accomplished. Rather than control all decisions in a centralized manner in accordance with a rigid plan, the leader must develop a vision of where they organization should go and then allow his employees to pursue that vision as a team with great autonomy. I have wanted to read this book for almost ten years. It was first pointed out to me by a remarkable business leader in mainland China, Zhang Ruimin, the founder of the Haier Group, as a seminal text for him. He said that he had built a learning organization in accordance with Senge's prescriptions, and after so many years, I see that indeed he did. What this book did for me was to give me a better idea of Zhang's mind and what went on in it. But it has also given me a clearer idea of many other remarkable entrepreneurs whom I have had the pleasure and honor to meet over the years in my work. As Senge explained, these men had a vision, but used the gap that existed between their vision and current reality to inspire their workers to achieve remarkable things. And they created self-reinforcing systems to do so. Another fascinating aspect of this book is that, in spite of being nearly 15 years old, it felt fresh and its examples did not feel stale and in need of updates. Many books that old extoll Japan as the model to emulate and explain why that country does everything better than everyone else. Just take a look at Porter's books! While this book has some examples from Japan, it does not fall into that trap - for me, that means its analyses have stood the test of time. This is one of the best business books I ever read - and I have read way way too many of them! Warmly recommended.
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58 of 61 people found the following review helpful:
4.0 out of 5 stars
An Intellectual Look Into Creating A World-Class Business, May 13, 2000
This review is from: The Fifth Discipline (Hardcover)
The Fifth Discipline stresses the importance of cultivating a learning organization. Accordingly, it is a book of learning more than of application. The content is very philosophical compared to other business-oriented books that I've read. The author, Senge, forces the reader to be alert and to be open. With that in mind, this book has a wealth of information to share with its readers. Although I would not recommend this book to the casual reader, it is a must-read for anyone who cares to be intellectually challenged from a business leadership perspective, and who wants to deepen their own knowledge-base in order to become more insightful leaders in their organization. In chapter two, Senge wastes no time getting to the fact that most business organizations (even the "good" ones) have a real learning deficiency. Often, businesses find some way to get the job done, but have no culture that fosters real growth and accumulation of new, outside knowledge. As a result, many businesses-while growing in the areas of sales, profits, employees, etc.-nonetheless are often doomed to repeat past mistakes, and perhaps set themselves up for a much bigger fall in the future. Senge's discussion of mental models (chapter 10) and the role they play in every person's interactions with others is of value to the manager who wonders why they are sometimes ineffective when it comes to working with certain other individuals. Our mental models often effect our outward actions towards others in negative or at least non-productive ways, and we are usually not even cognizant of that fact. The "Action Science" theory is also interesting as we try to learn how to more effectively interact with others in the organization. Towards the end of chapter 10, Senge shares some very basic ideas that, if remembered, can help individuals cultivate more fruitful working relationships within the organization. In chapter eighteen, Senge focuses on what it takes to be a leader in a continually improving, systems-oriented organization. The leader of this type of organization must become a better "designer" of that business's capabilities. This person cannot expect his employees to perform to his expectations if the system that has been designed (within which they perform) is not capable. The leader must continually improve and redesign the overall system/organization so that organizational growth can always be a reality. "'The bad leader is he who the people despise. The good leader is he who the people praise. The great leader is he who the people say, "We did it ourselves."'" In Senge's paraphrase of Lao-tzu, we learn that people have thought about leadership criteria for thousands of years. We also can read that a great leader is one who helps design a system that enables all employees to contribute and grow. Senge interviewed three executives whose organizations have thrived as learning, systems-oriented businesses, and included their responses in the chapter on leadership (18). Ray Stata, President and CEO of Analog Devices, Inc. notes that "the rate at which organizations learn may become the only sustainable source of competitive advantage" in the future (p349). As worldwide industries mature, and companies become global, we have every reason to believe that certain variables (employee education, technology, etc.) will be increasingly equal. If this assumption holds to be true in the future, then Ray Stata's observation is one that today's business leaders should beware. In the not too distant future, it may be only the learning organizations that survive and prosper.
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84 of 91 people found the following review helpful:
5.0 out of 5 stars
An inspiration..., February 7, 2002
The Learning Organization remains one of the most talked-of management concepts in today's business world, and nobody is as capable of explaining exactly what is a Learning Organization or what are the requirements for such an elusive concept than Peter Senge. Senge's main thesis is that for an organization to become a Learning organization, it must embrace five disciplines:
1) Building Shared Vision so that the organization may build a common commitment to long term results and achievement.
2) Mental models are a technique that can be used to foster creativity as well as readiness and openness to change and the unexpected.
3) Team Learning is needed so that the learning is passed on from the individuals to teams (i.e. the organization as a whole).
4) Personal Mastery is the individual's motivation to learn and become better (hence the term Mastery).
and Finally
5) The fifth discipline is that of Systems Thinking which allows to see a holistic systemic view of the organization as a function of its environment. However, this is not simply a book about management practice.. though it was written primarily for the use managers. This is a book about growth, improvement and continuous development. If you wish to achieve these results for yourself, your home, or your organization, then you MUST read this book. Senge introduces his ideas and concepts smoothly and in an absorbing style. He is able to explain difficult concepts simply and by the end, you find that you have whole-heartedly embraced his belief in the Learning Organization, in fact, you find yourself yearning for it!
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