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This paper is a consequence of several years of research and management learning activity with small and medium‐sized enterprises (SMEs), which focused on the development of the organisations and the concomitant development of managers within those organisations. The empirical study sample revealed a preference by owner managers and directors for action learning as a medium for the development the organisation and its people. In situations in which action learning was operational, the owner managers and directors in the sample were positive about the effect on organisational effectiveness. The authors conclude with the proposition that the development of a learning organization is a journey, which might never be completed, however, the decision to embark on the journey and the process leading to embarkation provide the organisation and its people with an increasingly effective compass through which the company is able to navigate itself through the hostile uncertainty of the business environment.
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