Action Learning Sets delivers Cost Saving and Business Improvement

 

The Value and Importance of Action Learning Sets in Business Improvement and Cost Saving

In a business climate increasingly focused on cutting costs while driving improvement, action learning sets (ALS) have emerged as a powerful, cost effective tool. They offer a structured yet flexible way to solve problems, develop leaders and leadership, build trust and enhance relationships. Particularly in today's context, where businesses are striving to improve performance while keeping an eye on expenditure, ALS sessions are a strategic asset.

But why is ALS (action learning sets) so effective, and what makes it such a valuable practice for businesses?

The concept of action learning sets: history and fundamentals

Action learning was first developed by Reg Revans in the mid-20th century, driven by the idea that learning should be linked to real life action and problem solving. He believed that people learn best when they work on real challenges and reflect on their experiences as a group. Revans’ work focused on the connection between taking action and learning from that experience, making it a hands on, experiential form of learning and development.

At its core, ALS is a structured process where small groups (learning sets) of 4-6 people work together on specific challenges. These groups meet regularly to discuss, support, and challenge one another to find solutions to real business problems and opportunities. Each session is guided by a facilitator who ensures the conversation stays productive and focused. Importantly, the focus is not just on finding the right answer but also on learning through the process of exploration and reflection.

Why action learning sets are so effective in business

1. Building trust and strong relationships

In my experience, one of the most compelling benefits of action learning sets is its ability to build trust within a group. By working together on real world problems that matter, members develop a sense of shared ownership and responsibility. They open up about their challenges and opportunities, and in doing so, create an environment of mutual respect and understanding. The candid, reflective conversations that happen in these sessions lead to deeper relationships, which are critical for collaboration across departments and teams.

In times of cost cutting, when companies may reduce staff or stretch resources, strong relationships can help maintain morale, streamline communication and reduce inefficiencies. Trust leads to better decision making and more cohesive action.

2. Effective problem solving and innovation

In an ALS (action learning set), the problems discussed are not hypothetical—they’re real and pressing issues faced by the individuals, their teams and organisation. This relevance means that participants are highly engaged, and the solutions they generate are directly applicable. The diversity of perspectives in a learning set allows for creative, out-of-the-box thinking, which can be key to solving problems efficiently and innovatively.

From a business improvement perspective, this collaborative problem solving approach helps uncover solutions that may not surface in traditional settings. In fact, the ALS process encourages reflective thinking and iterative learning, allowing businesses to identify more effective, sometimes unconventional, solutions to complex challenges.

3. Leadership development

Action learning sets are a natural incubator for leadership skills. Participants are encouraged to take responsibility for their own learning and to support the learning of others. This active participation and facilitation help develop critical leadership traits such as active listening, empathy and effective questioning.

Moreover, as ALS members are often leaders or managers themselves, the opportunity to reflect on their leadership style, experiment with new approaches, and receive constructive feedback is invaluable. Companies looking to develop their next generation of leaders can benefit greatly from the leadership cultivation inherent in ALS processes.

Why ALS is robust for long term business value

Action learning is not a short term fix but a robust, long term solution for continuous improvement. By embedding the principles of action learning sets within the organisation, companies create a sustainable framework for addressing challenges and driving improvement.

The process is built on accountability—individuals commit to actions they will take before the next session, growing a sense of responsibility and follow through. This cycle of action, reflection and learning helps instil a culture of problem solving and improvement throughout the organisation.

Furthermore, because ALS groups work on actual business challenges, the improvements and innovations generated during the process directly impact the bottom line. Whether through enhanced efficiency, better decision making or improved team dynamics, the changes driven by ALS can result in substantial cost savings over time.

The value of a qualified ALS facilitator

The success of an ALS largely depends on the skill of the facilitator. While the concept of action learning is simple, guiding a group through the complexities of problem solving, while maintaining focus and ensuring that learning remains central to the process, requires expertise.

A qualified ALS coach and facilitator brings several benefits to the table:

• Neutral perspective: The facilitator offers an unbiased view, ensuring that discussions remain objective and focused on the task at hand, rather than getting derailed by organisational politics or biases.
• Experience in guiding reflection: Facilitators help participants reflect on their actions and learning, pushing them to dig deeper and question assumptions that may be hindering problem solving or innovation.
• Creating a safe space: A facilitator ensures that the environment remains supportive and non-judgmental, encouraging participants to open up, which is crucial for building trust and collaboration.

Without a skilled facilitator, ALS sessions may lack the structure or focus necessary to deliver meaningful business outcomes. Therefore, investing in an experienced ALS facilitator is crucial to reaping the full benefits of the process.

The value to businesses includes cost saving and business improvement

Now more than ever, cost saving is at the forefront of business agendas. ALS offers a cost effective approach to addressing this priority while simultaneously driving business improvement. Here’s how:

1. Reduced costs through problem solving: ALS helps businesses identify inefficiencies and find cost effective solutions to operational challenges. By working on real business problems, the solutions generated are practical, applicable and often lead to cost reductions.
2. Boosting employee engagement and retention: Engaged employees who feel heard and valued are more likely to stay with the company, reducing turnover and the associated costs of recruitment and onboarding.
3. Improved team performance: By enhancing trust, collaboration, and leadership within teams, ALS helps improve overall team performance. Better performing teams mean fewer errors, improved productivity, and ultimately, cost savings.
4. Sustainable leadership development: ALS builds leadership skills organically, which translates into more competent, confident leaders who can drive performance and strategic decision making in a cost effective way.

So what?

Action learning sets are a powerful tool for any business looking to drive improvement and reduce costs. Through a structured process of collaborative problem solving, building trust and leadership development, Action Learning Sets provides both immediate and long term value to organisations. In a year where cost saving seems to be at the top of many business agendas, ALS offers a robust, effective solution that benefits both individuals and the business as a whole. The role of a qualified facilitator is crucial in ensuring that these sessions remain productive and impactful, further solidifying Action Learning (ALS) as a key strategy for continuous business improvement.

 

Client references:

‘Having implemented a series of ALS workshops for three groups across our business, we noticed reduced silo behaviour, tensions and unnecessary losses in the functions and projects. In addition we could feel changes and improvements in the attitude and speed of decision making, there was clearly more collaboration and desire to make real improvements – whilst some were only small, the sum was most useful. Two of the participants have since been promoted to senior roles and one has been recognised with a special award for Innovation’

Commercial Director, Logistics Company

 

‘After a round of redundancies we needed to steady the ship, make confident cost savings and improving culture without spending too much money. We invested in action learning as a sustainable way to meet these needs, invest in our leaders and managers, and access more of the talent that we value in our people. Participants will tell you that they enjoy the sessions as a way of connecting, problem solving and moving forwards together.’

People and Culture Director, Technology