Abstract brain with gears turning, symbolizing organizational learning

Unlock Your Business Brain: How Procedural Memory Fuels Organizational Growth

"Is your company stuck in its ways? Discover how tapping into your 'procedural memory' and balancing different perspectives can drive innovation and learning."


In today's rapidly changing business landscape, companies need to be more adaptable than ever. The Spanish banking sector, for example, operates in a particularly turbulent environment, requiring businesses to constantly detect and interpret ambiguous signals to make the right moves. This means understanding not only what your current customers need but also anticipating the needs of potential future customers.

Think of it like this: a company has a "focal vision," which allows it to focus on the needs of its most valuable, current customers. This vision helps managers set goals and deliver solutions. However, just like our eyes, this "focal vision" can be narrow, potentially missing critical information from the periphery.

That's where "knowledge corridors" come in. These are the structures, routines, and values that allow managers to consider new opportunities – whether that means rejecting old ideas or adopting new ones. By understanding and utilizing these corridors, businesses can change the way they perceive information and create new knowledge about both potential and valuable customers.

What is Procedural Memory, and Why Does It Matter?

Abstract brain with gears turning, symbolizing organizational learning

In the context of business, 'procedural memory' refers to the knowledge an organization has learned from past experiences. It's the collective 'know-how' that allows workers to access information and skills. This memory is composed of action rules that drive the performance of familiar tasks and routines. Think of it as the organization's muscle memory.

Here's why it’s important: procedural memory contributes to the improvement of organizational learning and establishes a foundation for competitive advantage. This knowledge, comprised of procedures, routines, and collective organizational understanding, becomes the basis for preserving and utilizing invaluable information.

  • Continuous learning: Integrate learning into the daily workflow.
  • Team Learning: Utilize teams to encourage diverse thinking and collaboration.
  • Embedded systems: Implement systems to share knowledge effectively.
  • Inquiry and Dialogue: Foster a culture of questioning and feedback.
However, there's a risk: sometimes, procedural memory is based on past activities that are no longer relevant. Think of outdated processes, or assumptions about potential customers that no longer hold true. This can impair a company’s ability to innovate and adapt. Signals that a company's procedural memory is failing include the presence of blind spots among organizational members, which can result from power dynamics and outdated mental models.

The Path Forward: Balancing Perspectives for a Learning Organization

The key takeaway? Understanding your company's procedural memory is critical, but it's not enough. You need to foster a balanced perspective – a vision that combines both a focus on current customers and an awareness of emerging trends and potential future customers. This 'ambidextrous vision' will stimulate knowledge sharing, encourage the use of different types of knowledge, and ultimately drive organizational learning and adaptation. It can also encourage the internal stakeholders to focus on customers' concerns, needs, perceptions and understandings to facilitate the search for unique value creation opportunities and relate them to the organization's learning needs (e.g. strategic direction).

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1108/jkm-01-2017-0018, Alternate LINK

Title: Linking Procedural Memory With Organizational Learning Through Knowledge Corridors

Subject: Management of Technology and Innovation

Journal: Journal of Knowledge Management

Publisher: Emerald

Authors: Juan-Gabriel Cegarra-Navarro, Anthony Wensley, Daniel Jimenez-Jimenez, Antonio Sotos-Villarejo

Published: 2017-10-09

Everything You Need To Know

1

What is procedural memory in a business context, and how does it impact an organization?

In a business setting, 'procedural memory' represents the accumulated knowledge and 'know-how' within an organization. It encompasses the routines, procedures, and collective understanding derived from past experiences. This memory is crucial because it underpins the execution of familiar tasks, enabling organizational learning and contributing to a competitive advantage. Essentially, it's the foundation upon which invaluable information is preserved and utilized, forming a basis for continuous improvement and efficient operations.

2

How can 'knowledge corridors' benefit a company's ability to adapt and innovate?

‘Knowledge corridors’ are the structures, routines, and values that enable managers to consider new opportunities. By establishing and utilizing these corridors, businesses can reshape their perception of information and generate novel insights about both potential and valuable customers. This allows companies to adapt to changing market conditions by incorporating new ideas and discarding outdated ones, fostering a more dynamic and innovative environment.

3

What is the significance of 'focal vision' and 'peripheral vision' in organizational strategy, and how can companies balance them?

‘Focal vision’ allows a company to concentrate on the needs of its present, most valuable customers, enabling managers to set goals and provide solutions. However, it may lead to a narrow focus, causing companies to overlook critical information in the periphery. Balancing this with a 'peripheral vision' is vital for adaptability. This involves considering emerging trends and the needs of potential future customers. Combining these two perspectives creates an 'ambidextrous vision,' which encourages knowledge sharing, utilizes different types of knowledge, and ultimately drives organizational learning and adaptability.

4

What are the risks associated with relying solely on procedural memory, and how can these be mitigated?

While procedural memory is valuable, over-reliance on it can be detrimental. If procedural memory is based on outdated activities or assumptions, it can hinder innovation and adaptability. Blind spots and outdated mental models among organizational members are signs of this risk. To mitigate this, companies must foster a balanced perspective, or an 'ambidextrous vision.' This involves understanding the current customer needs while also being aware of emerging trends. This balance stimulates knowledge sharing, encourages the use of different types of knowledge, and drives organizational learning and adaptation.

5

How can an organization foster a culture that enhances and leverages its procedural memory for continuous improvement and competitive advantage?

To enhance and leverage procedural memory, organizations should integrate learning into the daily workflow, encourage diverse thinking and collaboration through teams, implement systems to share knowledge effectively, and foster a culture of inquiry and dialogue. Furthermore, by developing an 'ambidextrous vision', companies can better balance the focal vision focused on current customers with a peripheral vision that seeks out emerging trends and the needs of potential future customers. This balanced approach enables the company to create new knowledge and foster innovation.

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