What is organisational learning and how does it drive growth?

The right approach to learning means an organisation gets wiser over time, and that knowledge doesn’t simply flow in and out with each employee who starts and leaves. Learning organisations treat knowledge as a valuable asset, guarding and nurturing it over time. Yet many businesses still cling to rigid thinking and knowledge hoarding that slows them down.

I’ve seen both approaches first-hand over the years. Organisations that prioritise learning respond to challenges and spark new ideas more quickly, while those that don’t are slow to innovate and are often caught off guard by change.

In a world that never stands still, success depends on your team’s ability to share and apply knowledge to solve problems and adapt to new situations. Our latest research confirms this, finding that a culture of learning is one of the biggest drivers of high performance.

In this article, I’ll explore what effective organisational learning looks like and how to make it happen in your organisation.

What is organisational learning?

Organisational learning is the process of gaining, sharing, and using knowledge to improve an organisation’s performance. It happens in all sorts of settings, from formal training to new projects and conversations with colleagues. Even failure provides valuable lessons.

An effective learning organisation is greater than the sum of its parts. While many businesses develop individuals in isolation, others combine knowledge to create a continuous cycle of improvement. It’s the difference between constantly reinventing the wheel and using it to drive the business forward.

The benefits of organisational learning

When your organisation is fully committed to learning, the benefits ripple across everything you do. Here’s what you stand to gain.

Greater agility: When learning is part of your culture, team members know how to find, share, and apply knowledge straight away, meaning you can respond to change faster and more effectively.

More innovation: Good ideas don’t grow on trees. They grow in workplaces that encourage experimenting and learning from mistakes. Our research shows employees see risk-taking and innovation as their organisation’s weakest area when it comes to driving high performance, making this a major opportunity for improvement.

Better employee engagement: People want to work for companies that invest in their development. A robust learning culture helps keep employees motivated and reduces turnover.

Stronger collaboration: Teamwork improves when employees share knowledge. Stubborn silos break down and problems are solved more quickly as colleagues get their heads together to tackle them.

Higher productivity: All of that learning leads to tangible improvements that boost the bottom line. The more your organisation learns, the better it performs.

Key traits of a learning organisation

Not every business that delivers training is a ‘learning organisation’, and true organisational learning involves a mindset shift. Here are some of the characteristics that set learning organisations apart.

1. A shared vision and common goals

To drive growth, learning needs direction, meaning everyone must understand the part they play in achieving company goals.

Make sure each employee knows how their role and development contributes to the organisation’s success. When people see how they fit into the bigger picture, they’re more likely to engage with learning opportunities that support it.

According to our research report, a shared vision and goals is one of the top drivers of high-performing teams.

2. A commitment to personal growth

While an effective learning organisation brings people together to achieve shared goals, this starts with individuals. Employees need opportunities to expand their knowledge and challenge themselves before they can use their new skills to grow the business.

They also need the time and motivation to take ownership of their development. Learning is often put on the backburner to make way for more urgent tasks, so help team members make room for personal growth in their busy schedules.

At the same time, show them how to shape their own learning so that it’s relevant and engaging rather than inconvenient. Learning experience platforms (LXPs), such as People First Learning, are particularly useful here, letting you create personalised learning pathways that show each person the content that’s most valuable to them.

3. Reflection and open communication

We’ve all encountered workplaces where mistakes are brushed under the carpet, and where no one dares question the way things are done. That’s the opposite of a learning culture.

Learning organisations create space for reflection. They encourage employees to discuss problems and challenge existing processes. And they’re not afraid of difficult conversations because they know that’s where growth happens.

Help team members feel comfortable sharing failures, pointing out flaws, and admitting when they don’t know something. That way, you can plug knowledge and skill gaps, find better ways of doing things, and prevent the same issues arising again and again.

4. Knowledge sharing and collaboration

Each day, your people discover new information, solve problems, and figure out better ways of doing things. But does that knowledge spread throughout the organisation to fuel growth? Sharing knowledge is the foundation of a strong learning culture.

If information stays locked inside individual minds, it doesn’t benefit the organisation; it also means that every time someone leaves the business, their knowledge goes with them.

Learning organisations can facilitate knowledge sharing in many different ways, including mentoring, team discussions, and digital platforms that capture and distribute insights.

LXPs allow your in-house experts to turn their knowledge into engaging content anyone can access. They also support social learning, giving colleagues a digital space where they can discuss topics and build collective wisdom.

5. Identifying and addressing systemic barriers

Some organisations struggle to learn not because their employees don’t want to, but because their systems make it difficult. For example, outdated processes, rigid hierarchies, and clunky software all get in the way.

A strong learning organisation removes these barriers so employees can access the right information quickly. This is where systems thinking comes in – looking at the bigger picture and ensuring your entire organisation supports rather than hinders learning.

Types of organisational learning

Combining different types of learning helps you achieve a culture of continuous improvement. Here are some key approaches.

1. Individual learning

Every employee learns through experience and formal training. Encouraging ongoing development at an individual level ensures employees stay engaged and gain skills that benefit the whole organisation.

2. Learning through dialogue and inquiry

Learning doesn’t need to be done alone. Conversations and brainstorming sessions help employees to see things from others’ perspectives, raise tough questions, and build a shared understanding of topics that are vital to company growth.

3. Team learning

Teams evolve by working through challenges together. Collaborative learning helps groups of employees to communicate better, work more efficiently, and combine their knowledge to come up with exciting new ideas.

4. Continuous learning

Learning shouldn’t be limited to one-off sessions. Keep up the momentum by providing ongoing development opportunities such as mentoring programmes and regular training, and encourage employees to stay curious about better ways of doing things.

5. Learning through empowerment

Experience has taught me that the more responsibility you give people, the more they learn. So give team members opportunities to lead projects and make important decisions. While delegating authority can feel like a risk, it generally pays off in the long run.

The good news is that according to research, leaders see empowerment and autonomy as their organisation’s biggest strength among the main drivers in our Secrets of High Performance research report.

6. Learning from your own systems

Don’t forget that your existing systems offer a treasure trove of insights into your business and customers. For example, your reporting and analytics platforms, HR systems, and payroll software all contain valuable information that should influence decisions.

7. Learning from leaders

Leaders set the tone for a learning culture, and they should model the behaviours you want employees to follow. They also have a wealth of experience and knowledge that the rest of your organisation could benefit from.

Throughout my career, I’ve seen how much employees can learn just by observing how leaders approach challenges. But leaders can also pass on their knowledge more directly through mentoring, training sessions, and internal communications.

Implementing organisational learning

So, how do you put all of this into practice? It’s one thing to recognise the importance of organisational learning, but another to make it a reality in your business. Here’s what to focus on first.

Embed learning into your culture

Start by making learning part of your organisation’s DNA. Leaders must champion it, policies must support it, and technology must enable it. Give employees the tools they need to learn in the flow of work; not just in scheduled training sessions, but in everyday interactions and experiences.

One thing I’ve learnt is that it’s essential to make time and space for learning so that it doesn’t compete with employees’ other priorities.

Invest in the right tools

An LXP can play a big role here. Unlike traditional learning management systems, which focus on structured training and a standard experience for all employees, LXPs create a more dynamic, user-driven learning environment. In my experience working with hundreds of organisations, they’re a great way to boost engagement and learning by letting employees explore individual learning pathways and collaborate with colleagues.

Recognise and reward learning

Too often, employees feel like learning is a box ticking exercise that earns them little recognition for their efforts. Turn this around by making sure leaders value learning. You can do this explicitly by rewarding employees who take the initiative to grow their skills, and by celebrating knowledge that positively impacts the business.

Challenges in organisational learning

Embedding organisational learning isn’t always straightforward. Here are some of the most common challenges and how to overcome them.

1. Information overload

Most employees are bombarded with information, with emails, meetings, Teams messages, and conversations with colleagues to juggle. With an endless stream of information to contend with, finding and absorbing relevant learning materials can be overwhelming.

One solution to this is curated learning. Instead of expecting employees to sift through mountains of content, use an LXP to streamline learning by recommending personalised content based on each person’s responsibilities and goals. Employees can also choose the modules and materials that suit their learning style best.

2. Lack of time

Information overload isn’t the only thing stopping employees engaging with learning. Ask anyone why they don’t regularly focus on development, and the answer will likely be, “I don’t have time.” With deadlines looming and targets to hit, learning often takes a back seat.

To tackle this, integrate learning into daily workflows. Encourage employees to see everyday experiences as learning opportunities, whether it’s trying out a new tool or tackling an unfamiliar challenge.

When it comes to formal learning, microlearning (bite-sized content) is an ideal way to encourage continuous development without it feeling like a burden. While employees may put off a two-hour-long course for as long as possible, even the busiest person can watch a five-minute video while having a coffee or take a quick quiz between meetings.

3. Resistance to change

Let’s face it: not everyone loves change. I've come across many organisations where employees see learning as just another initiative that distracts from bigger goals, and this can make them reluctant to engage.

Communication is key here. Show employees how learning benefits them personally, whether it’s advancing their career or simply making their job easier. Get buy-in from leaders and make sure they set a good example. And most importantly, make learning enjoyable. If it feels like a chore, people will avoid it.

4. Knowledge silos

In many organisations, knowledge that could benefit the whole organisation is hidden away within a single department.

To break down silos, encourage interdepartmental collaboration and knowledge sharing. This could be through mentoring programmes, cross-functional projects, or digital platforms where employees can share insights and learn from each other. An LXP, for example, makes it easy for subject matter experts to publish content that benefits others.

5. Measuring impact

One of the biggest challenges is proving that organisational learning actually makes a difference. It’s easy to track course completions, but how do you measure real impact on business outcomes?

The answer lies in data. With an LXP, you can measure who’s learning what and which initiatives are driving the most value. At the same time, your analytics software can provide insights into how skills development affects business performance over time.

Future trends in organisational learning

The way we learn at work is changing. As technology evolves and so does the workforce using it, organisational learning must keep pace. So, what does the future hold?

Personalised learning experiences

Younger generations of employees expect the same level of personalisation from workplace digital platforms as they get from Netflix and Instagram. The shift from learning management systems to LXPs will accelerate, making learning more accessible, relevant, and integrated into everyday work.

At the same time, LXPs will continue using artificial intelligence to deliver more tailored experiences, saving time and improving learning outcomes.

Social and collaborative learning

Traditional training methods can feel isolating. Peer-to-peer learning and real-time collaboration tools will become even more prominent, making knowledge-sharing more interactive and enjoyable.

Learning as a strategic priority

I’ve often found that forward-thinking organisations already treat learning as a key business strategy rather than an afterthought. In the future, we’ll see more leaders prioritising learning initiatives as a way to meet strategic objectives.

With the right mindset and the latest tools, your organisation can turn learning into a competitive advantage. Find out how People First Learning software can help you reach your goals.