| If
you were to make “roomali roti” it would probably
take you a difficult 30 minutes to produce a warped and uneven
one, while it takes about three minutes for those man who
do it in great style and to scintillating effect in the restaurant.
Apart from the tools and the hearth, the important reason
for your poor show is the learning curve. It is the same when
you have your wheels changed at the normal garage and the
way they do it, in seconds, for Schumacher at the pit stop
on the racetrack. We all know the age-old adage that practice
makes a man perfect. But learning curve is more than a saying
– it has many dimensions, uses and implications, particularly
for the HR manager. In some ways, it is the dynamics of the
learning curve that earn his bread.
The
theory of learning curve, emanated formally from the world
of engineering, mathematics and statistics. The earliest was
probably the work of J.P.Wright, who introduced in 1936, a
mathematical model describing the learning curve while examining
the factors affecting the cost of airplanes. It was evident
that the average labour cost decreased in a predictable pattern
in an exponential manner that was a linear curve when plotted
on a log-log paper. Since then, this theory has been used
fruitfully in many areas such as strategy, production, education,
discovery, agriculture, surgery and lately in I.T. Depending
on the context, learning curve has been defined in several
ways. At the bottom of all is the belief that the input cost,
or time, per unit produced decreases by a set percentage every
time the cumulative output doubles. Thus, a 80 per cent learning
curve, as in the manufacturing context, assumes that the effort
taken to produce further volumes of products will be only
80 per cent of the first set. Has this any thing to do with
HR Management?
Obviously,
training and Organization Development interventions should
be deeply involved with learning curves, understanding the
philosophy, its application, measurement and implications.
In some ways, effective Human Resources Management assumes
that learning curves come to their rescue as otherwise the
returns to the investment will be unjustifiable – there
ought to be a direct positive correlation between integration
of learning curves into HRD and cost-effectiveness of training.
In
recent times, there is increased attention to the impact of
learning curves on top management efficiency as well and the
overall management of cost and compression of time. Studies
in Europe have concluded that the top management teams` homogeneity
and other characteristics contribute to better learning curves
and greater cohesion in strategy making and its effective
implementation. The learning curve obviously is at the crux
of reduced delivery time of various I.T projects and their
cost. The continued demolition of cost in General Electric
and introduction of new products at 3M cannot be achieved
by mere exhortations or pressures - it must have some thing
to do with high level of integration of strategy, tactics
and learning curves.
It
appears that group processes and leadership have a telling
effect on learning curves.. Atul Ganwade (“Complications”
Metropolitan Books, New York, 2002) reports the study by a
group of Harvard Business School researchers. This group,
which was examining the learning curves of several sectors,
studied the learning curves among surgeons. They followed
18 cardiac surgeons and their teams as they implemented the
new technique of minimally invasive cardiac surgery. The new
operation involved a small incision between the ribs instead
of opening the chest down the middle. Though less painful
and messy, the new technique was difficult as the incision
is too small to admit several tubes and clamps for re-routing
blood to the heart by-pass machine. The surgeons had to operate
in a narrow space. The entire operation needed new instruments,
new ways of doing things, new conditions, new procedures and
obviously newer complications.
In
the case of the new heart procedure, the researchers from
the Harvard Business School found that whereas all teams received
the same training and came from top institutions, there were
wide disparities in the performance of the teams, in terms
of the time taken. In the course of 50 cases, it was seen
that some teams halved their operating time while others failed
to improve at all. More importantly, the researchers found
that the crucial variable was not so much the competence or
reputation of the surgeons but how the team practiced and
improved on the learning curve. They found that one of the
quickest learning teams was actually led by a surgeon who
was quite in experienced. But, he chose to pick team members
with whom he worked well before and kept them together through
the first 15 cases before allowing any change in the team.
He had the team go through a dry run and then deliberately
scheduled six operations in quick sequence so that little
would be lost in between. He convened the team before each
case to discuss in detail and afterward to debrief. It was
evident that the surgeon was tracking all conditions and the
results carefully and was open to inputs from the other members.
In
contrast, the slowest learning team had among the most reputed
and experienced of the surgeons. But, the leader chose his
team randomly and did not keep it together. He did not prefer
any briefings, debriefings or tracking of results. The processes
adopted by the two teams were very much in contrast that caused
the differences in the learning curves.
A
study by McKinsey also noted that the most effective teams,
focusing initially on working together, get early results
in their efforts to deal with important business issues and
then reflect together on the manner in which they did so,
thus discovering how to function better as a team. It appears
that even in the case of airlines and NASA it was evident
that certain group processes (such as the team member’s
understanding of social and cognitive aspects) appear to have
contributed to better working. A study of the IT firms in
Belgium and Netherlands also reiterates the importance of
the processes that improve the learning curves.
Lest
we think we have found the target for the HR managers, - to
concentrate on the team processes to improve the learning
curve – one must know that there are complexities as
well. For instance, one may have made efforts to perfect the
group processes and achieved leadership in the learning curve
among competitors. But the very learning curve can become
the curse of a team that refuses to adapt!
Lets
us take the case of the learning curve of those making cow-dung
cakes for fuel or in a radio manufacturing company (Murphy
brand ? ). If the teams have not been able to absorb the new
technologies, products or market requirements, for whatever
reason, the competitive advantage will be short-lived. However,
for those who have mastered the old, there is a sunk cost,
atleast in the short term, that they find hard to write off.
Yet, if the surgeons do not accept new procedures, tools,
technology but are on a high on the yesteryear, it would bring
no joy to anyone. One wouldn’t want a “Sushrutha”
team to do surgery now howsoever high it may be on the learning
curve. It implies that teams must have a super imposition
of a dynamic of learning curves that are sensitive to new
developments. This is where the learning curve becomes important
even in discovery, innovation and change and indicates the
potential of a meta –learning curve.
It
appears that the processes adopted by the teams should be
of prime concern for the HR managers to ensure that performance
improves and they have better yields from the learning curve.
Eventually, organizations still need to demolish costs and
time on a competitive basis and simultaneously, increase their
ability to innovate, discover, adapt or change tack at a short
notice. They require competitively better learning curves
on several dimensions. It will be a good idea if HR managers
start benchmarking teams on the basis of learning curves on
multiple criteria and processes and correlate them with strategic
results.
While
one I will not mind a long wait for a warped “romali
roti” or changing of wheels, one would certainly not
want his skull opened for a brain surgery for three hours
for what should take 30 minutes! Nor would he like his skull
to be pried open by medieval masters
of Science than potential novices
of the modern technology!
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