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Discusses that the only true source of sustainable competitive advantage seems to be by building learning organizations. Says that, in order to ensure the survival of their organizations, managers need to focus on individual and organizational learning, the development of a shared vision, an awareness of the internal environment and the external context, and that a key requirement in this process is the ability to surface and test the mental models of people throughout the organization. Also one of the ways of testing mental models is within the context of action. States that exploration of effective action is examined using the Rosenthal stage. Uses an action‐based method using a miniature stage. The Rosenthal stage involves a five‐step process of surfacing, externalizing, reflecting, revealing, and active dialogue of people’s perceptions of their organization. Presents a case study which demonstrates the surfacing of a mental model of a senior manager in a multinational communications organization. The power of the Rosenthal stage enabled this manager, after one session, to gain contextual insight into the breadth of his organization, and the value of his contribution.

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