Why Learning is Key to Business Success: How Management Can Make a Difference

In today’s fast-moving world, companies are constantly bombarded with new information, particularly in the digital age. There is an overwhelming flow of data, and managers often struggle to keep up. While managing day-to-day tasks is a challenge in itself, the lack of a learning culture in an organization’s management can lead to serious consequences—even the failure of a business.

Imagine this: You’re driving a car that you’ve never learned how to operate properly. Every time you make a mistake, it’s costly. Now, what if those mistakes were so serious that they could cause the car to break down completely? That’s exactly what happens when managers don’t allocate time to learn and improve their skills. In fact, mistakes made by senior management can cost a company millions and even lead to its shutdown.

Let’s dive deeper into why learning is so important for management staff, how not prioritizing it can hurt a business, and what steps companies can take to foster a learning culture.

The Overflow of Digital Information

Have you ever tried to focus on a task while dozens of notifications pop up on your phone or computer? It’s distracting, right? Now imagine that happening in a business environment where managers are responsible for making important decisions. Digital information is constantly flooding into organizations—emails, reports, and data from various sources. While this information can be helpful, it often overwhelms management, making it hard for them to dive into their processes deeply and improve their skills.

For example, a manager might get distracted by responding to emails all day instead of taking time to analyse how the company can improve its customer service. Without dedicated time for learning, they can easily miss opportunities to enhance business operations.

Why Business Schools Don’t Teach Everything

While schools and universities can provide a solid foundation, they rarely teach future managers how to run a business successfully in the real world. The truth is, running a business is far more complex than what can be covered in a classroom. Many of the skills that managers need, such as problem-solving, leadership, and strategic thinking, are learned through experience, not textbooks.

Let’s think about sports for a moment. A basketball player can read books and watch videos on how to shoot a basketball, but they won’t improve unless they practice on the court. The same is true for managers. They need time to develop their skills through hands-on learning.

Why Management Needs to Spend Time on Learning

Research suggests that management staff should spend at least 30% to 40% of their time learning new skills and understanding their processes in detail. Yet, in reality, many managers—whether they’re junior executives or directors—struggle to dedicate any time to learning. Why? Because they are often caught up in day-to-day tasks, leaving no room for self-improvement.

However, failing to dedicate time to learning can be very costly. Imagine a director making a mistake that costs the company millions of dollars. This is not just a theory—it happens in real businesses. In some cases, these mistakes can be so costly that they lead to the organization’s downfall.

In today’s world, we have advanced tools like artificial intelligence (AI) to help us gather and analyze information. However, even AI cannot fully prevent mistakes if managers aren’t learning from their experiences. Plus, people rarely share their firsthand mistakes for AI to analyze.

The Gemba Concept: A Solution from Japan

There is a powerful philosophy practiced in Japan that can help solve these issues: the Gemba concept. Gemba means “the actual place,” and in business, it refers to where the real work happens—like the factory floor or where products are being made. Managers using the Gemba approach take time to go to the factory or work floor to observe, understand problems, and find solutions.

For example, let’s say a manager notices that there are delays in shipping products. Instead of just reading reports, they visit the shipping department, talk to the staff, and see the process firsthand. By doing this, they might discover that outdated equipment is slowing down the operation, something that might not have been clear from reports alone.

In many organizations, managers don’t take the time to visit the actual place where work happens. If they were to practice the Gemba concept by taking just 30 minutes a day to understand the issues on the ground, they could uncover valuable insights and find solutions that boost the company’s success.

Ego and the Learning Gap

Another major issue in the absence of a learning culture is that many staff members believe they already know how to run the business. This can lead to a dangerous mindset. When people think they have nothing more to learn, their ego can prevent them from growing. They stop looking for ways to improve and don’t take advantage of new learning opportunities.

Think of it this way: Imagine you are a professional gamer, and you think you’ve mastered every game. But if you don’t keep practicing and learning new strategies, you’ll quickly fall behind as the games and players evolve. The same happens in business. Without a learning culture, businesses may fall behind competitors, and even worse, they could become irrelevant.

Why Learning Makes Competition Irrelevant

Companies often spend time and money trying to gather information about their competitors to improve their performance. While keeping an eye on competitors is important, it’s even more important for organizations to focus on their own processes and innovation. By practicing the Gemba concept and focusing on continuous learning, companies can come up with creative solutions that make competition less relevant.

For instance, a company that spends time learning and improving its manufacturing process might develop a new method that makes their products faster and cheaper to produce. As a result, they won’t need to worry about competing with others because their innovative ideas set them apart.

Implementing a Learning Culture: Practical Steps

So, how can companies encourage a learning culture in their management teams? Here are a few practical steps:

1. Set Aside Time for Learning: Management should allocate at least 30% of their time to learning and improving their skills. This could include attending workshops, reading industry reports, or simply analyzing their processes in detail.
2. Practice the Gemba Concept: Managers should take 30 minutes each day to visit the “Gemba” or the place where the actual work happens. By observing and engaging with employees, they can find practical solutions to problems.
3. Create KPIs for Learning: Companies can create key performance indicators (KPIs) that measure how well managers are learning and improving. This can include setting goals for new skills learned or processes improved.
4. Reward Innovative Ideas: Organisations should reward employees who come up with great ideas during Gemba practice. This encourages continuous improvement and motivates staff to think outside the box.

FAQs

1. Why is learning important for managers? Learning helps managers stay updated on new skills, improve business processes, and prevent costly mistakes. It also allows them to come up with innovative solutions to problems.

2. What is the Gemba concept? The Gemba concept is a Japanese philosophy where managers visit the actual place where work is done, like the factory floor, to observe, understand, and solve problems.

3. How much time should management staff spend on learning? Experts suggest that management should spend at least 30% to 40% of their time learning new skills and improving their processes.

4. What happens if managers don’t prioritize learning? If managers don’t make time for learning, they may make costly mistakes, fall behind competitors, and fail to innovate, which could lead to business failure.

5. Can learning make competition irrelevant? Yes! By focusing on improving their own processes and coming up with innovative ideas, companies can stand