Notes defensive actions and routines undermine core competencies and inhibit organizational learning. Discusses a solution of management development "in action," which integrates process and content and facilitates development of a learning organization that is able to engage in double-loop learning. (SK)

Describes business diplomacy based on the Japanese concept of kyosei (working for the common good). Gives case examples of application of principled diplomacy to ethical dilemmas and suggests ways to establish an organizational culture to support principled business leadership. (SK)

Management development programs should be considered a way to reenergize organizations. Their effectiveness should be measured by managers' intention to use new knowledge. Barriers to new actions should be minimized and the practice of new actions/skills reinforced so they become continuous and long term. (SK)