Organizational learning occurs when organizations acquire feedback and apply this knowledge to make meaningful changes in policy and procedures. Much of this learning is derived from [Page 541]organizational failures, varying in intensity across the organization. In many cases, failure is the impetus for learning. Without recognizing, learning from, and enacting change based on failures, organizations can perpetuate problems that ultimately lead to more serious consequences. Organizations that recognize failures and promptly attend to them are less likely to experience a full-blown crisis. Still, crises are often inevitable. Thus, organizations experiencing crisis typically undertake a highly visible learning process. The learning process advances through three stages: (1) direct or indirect experience, (2) meaningful change, and (3) healing.

Organizational failures, either minor or severe, create opportunities for reevaluating ...