Continuous improvement is a means to ensure meeting and exceeding increasing expectations of customers and other stakeholders and overcoming the challenges posed by changing market forces. Improvement backed by innovation through generation of ideas for new or improved work practices, products, and services and translation of ideas into reality (strategies, products, processes, business models etc.) gives a company unique advantage in the market place. Organizational learning is not only through the experience of its people but also through understanding the needs and expectation of its stakeholders. Learning provides a company with “what” and “how” of improvements to be taken up.

The prerequisites for organizational learning, innovation, and improvement include:

• Establishing clear organizational goals and strategies to achieve the same
• Establishing right priorities and measures
• Reviewing implementation of strategies against the plans is a major source of organizational learning
• Establishing management systems (structures and processes) by designing appropriate feedback and review mechanisms that encourage innovation rather than process compliance
• Establishing a culture of finding ways of improvement – in contrast with the culture of finding faults (basic barrier to innovation)
• Use of scientific analytical tools / statistical tools that provide new insights into performance
• Readiness on the part of leaders to listen to and support innovative ideas and concepts (creating and sustaining innovative culture)
• Shattering the notion that “we are the best” and instead look for best practices for triggering innovative ideas