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The shift to a knowledge‐based paradigm of management demands new conceptual tools for decision‐makers. Unfortunately, as writings on organizational learning and “learning organizations” have grown their clarity and focus have reduced, creating difficulties for managers who seek to apply these ideas. We propose a conceptual “Learning Square” with four mutually reinforcing domains – Multi‐dimensional goals, Using tacit knowledge, Continual learning, and Shared vision – that simplifies the issues. We illustrate the idea by analysing four critical episodes in the development of IS (information systems) within one firm that followed the trends of the last decade, towards corporate downsizing and radical business reengineering. We show how these policies often failed to engage with issues of learning and the use of people’s tacit knowledge. Managers can evaluate their decisions against the criteria of the Learning Square to improve the effectiveness of competitive strategies.

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