A Learning Organization is an organization that
has an inbuilt feedback cycle, and
where all staff are empowered to instigate change.
Measurement is inbuilt into the organization's processes and used as a Process Improvement Tool
for determining the success or failure of processes and seeks to derived new approaches designed for success
Modifications to processes
initially occur within one small group or location, and, if successful, are
propagated to other parts of the organization.
Changes in roles and processes are instigated in response to regular reviews.
There are many sources of information on learning organizations. I'm not sure if the above description fits into what some of the more popular books on the subject proclaim. (They tend to be more "blue sky")
The description offered above does not pretend to fit what popular books proclaim. It is a description of the structure and processes which will help an organization "learn".
Probably the most popular one is: The Fifth Discipline
A Learning Organization needs to actualize Lessons From Failure as well as Lessons From Success. See a free 35 page Harvard Business School paper::
When a given organizational scheme starts to work and such companies show a clear growing trend over competitors, then other companies and investment groups will start to adopt or enforce such techniques. Until then, it will only be considered an experiment, or yet-another-management-fad.
See also Swieringa And Wierdsma
See original on c2.com