1 1 This document is an earlier version of a paper subsequently published according to the following citation: Kock, N.F, McQueen, R.J. and Baker, M. (1996), Learning and Process Improvement in Knowledge Organisations: A Critical Analysis of Four Contemporary Myths, The Learning Organisation, V.3, No.1, pp.31-41. [Publisher: MCB Press, Bradford, England] Learning and Process Improvement in Knowledge Organisations: A Critical Analysis of Four Contemporary Myths Nereu F. Kock Jr.* Robert J. McQueen* Megan Baker** *Dept. of Management Systems, University of Waikato Private Bag 3105, Hamilton, New Zealand nfk@waikato.ac.nz **Dept. of Business Management, Monash University PO Box 197, Caulfield East, Victoria 3145, Australia megan.baker@buseco.monash.edu.au ABSTRACT This paper initially discusses the concepts of knowledge, information and data. This is followed by a description of the relationship between these three concepts and organisational competitiveness. The concept of knowledge organisations is then analysed, with the focus on its reliance on knowledge workers and intense information flow. Based on the previous discussion, four contemporary myths are critically analysed. These myths are that: (1) process improvement should focus on activities; (2) process improvement should itself be a top-down process; (3) organisations should be learning systems; and (4) fragmentation should be avoided. Myths (1) and (2) are related to the business process re-engineering movement. Myths (3) and (4) come from the learning organisations movement. We argue, in this paper, that these myths are particularly deceiving and potentially dangerous due to their incompatibility with the concept of knowledge organisations and the way these organisations operate. KEYWORDS: Learning Organizations, Knowledge Organizations, Business Process Improvement, Business Process Re-engineering, Myths