Learning from members : tools for strategic positioning and service innovation in trade unions

University dissertation from Stockholm : Economic Research Institute, Stockholm School of Economics (EFI)

Abstract: The formal governance structure is more complex in trade unions than in many other organizations. Trade union researchers have drawn attention to the tensions between union administrative and representative systems and the fact that control in unions is bi-directional from leaders to members (through formal control systems), and from members to leaders (through democratic structures). This study has shown that the utilization of market orientation methods has the capacity to strengthen the administrative system without interfering with or being hindered by the representative system.The findings related to market orientation methods presented in this thesis are not of such a character that they can be deemed to be specific for trade unions. Therefore, as a general rule, market orientation methods need no trade union-specific adaptation to be utilized.The setting for this study is Sif, a major industrial white-collar trade union in Sweden. The change process of Sif described in the thesis suggests an increased degree of market orientation. The study has focused on two specific tools/techniques; The Sif Barometer - an annual membership satisfaction survey, and The Design Dialogue Methodology – an internally developed group interview method. These methods have contributed to an enhanced level of market orientation. Propositions for better contributions to strategic positioning and service innovation are presented in terms of design principles.An identified problem is that the potential for double-loop learning has been limited in the organization. Some propositions for enhancing double-loop learning are set out:Knowledge enhances learning: the utilization of market information requires knowledge among managers and employees about the instruments used to ensure accurate interpretations and utilization of the results acquired. Knowledge thus has a role in breaking down the barriers preventing accurate utilization of market information.Task alignment is a viable strategy for the creation of learning micro-climates:  Learning through the change of work behaviors is the core element of a task alignment strategy. Task alignment is a strategy targeting learning capabilities in the organization that is not only an approach for solving problems in the long term, but also an immediate response to tangible business problems.Action research may contribute to double-loop learning: The action research method has inherent change properties connected to its "learning by change" approach.Actors should consider the discrepancies between espoused theories and theories-in-use: Various political behaviors hampering double-loop learning have been traced. A broad level of participation and involvement of managers and employees during the development or adaptation of the market orientation instrument can enable open and trustful discussions for enhancing double-loop learning.

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