We have found that many people talk about learning organizations without realizing the underlying assumptions that are required to develop a learning organiza-tion. Once we facilitated a group training and did a blitz survey about how many people believed they work in a learning organization. All but two out of 18 people believed they worked for a learning orga-nization. They associated the concept of learning organization with the learning opportunities their organizations offered to employees. By the end of the training, in which we explored the concept of learning organizations, we asked the same ques-tion again and only two out of 16 said they worked for a learning organization. Why? They realized that there is much more to the concept of organizational learning than the amount of training people can take.TwoTypesofLearningTo explore this concept, we will begin with the word "learning." There are two types of learning—informative and transforma-tive (Kegan, 2000). Simplistically speak-ing, informative learning allows people to learn more about the things that fit their mental models, while transformative learning is the process of changing mental models. To be consistent, we will use the term mental model across the article to describe a set of beliefs that generates people's assumptions and values and informs their motivations. The terms mental model and belief system will be used interchangeably. A simplistic metaphor for the two kinds of learning may help. Imagine you made a swimming hole in the backyard: you dug a hole, added water, and had a place to swim. You could embellish it by adding a diving board perhaps, or a rope swing, but in essence, it is a swimming hole. In this metaphor, the additions and changes are informative learning — taking in only the new information which fits with one's preconceived mental model of a swimming hole. But what if you saw that some people grew fish in their ponds, and the idea comes that you could expand the swimming hole to make it a fish farm too. You could reject this idea right away; you could understand that different people have different needs but you choose not to have fish; or you could become a fish farm fan. Converting your swimming hole into a fish farm/swimming hole is transformative learning, at least in this simplistic meta-phor. Your mental model changed.Transformative learning happens in stages, which we will illustrate with an example of intercultural interaction, because individuals from different cultures have absolutely different mental models of life. In the first stage, rejection, the person rejects, (or ignores, denies, dismisses—pick a word) any new information that does not fit in the current mental model. Often, during this stage, the carrier of the other mental model is viewed as being, at best ridiculous, or wrong, or at worst evil. The readers perhaps can relate to their own experience when they faced a culture that was extremely different from their own, and thus can recreate the plethora of 5What?assumptions (often inaccurate), feelings, and emotions that came with this.In the second stage, understanding, the person gets used to the idea that there are other ideas, assumptions, or values, which have the right to exist, and this is fine, as long as the person does not have to use or accept them. The readers perhaps have often heard a phrase, "we agree to disagree." This reflects that the parties understand that the other has a different opinion but are adamant about their own positions and reluctant to even try some-thing different. Using the intercultural example, this would be a situation when one has to live in a different culture for a short time, perhaps during travel. The person very much sticks to her own mental model, eats only foods she is used to, does only things she is used to, and does not venture off the beaten track. The person may find the other mental model amusing, but does not have to fight it, and does not certainly accept it for herself.In the third stage, using, the person tries out new behaviors from a different mental model, either by choice, or because this is the only way to adapt to a new envi-ronment. In our intercultural example, that would be a person who has to live in a dif-ferent culture for a longer time and finds some customs of this new culture accept-able. The person tries different foods, experiences new activities and new ways of thinking as part of being in the new culture but does not feel that this is something to embrace permanently.The fourth stage, integration, is char-acterized by a creation of a mental model that incorporates the best elements of the old and new mental models and rejects elements that do not work. In our example, the person becomes bi-cultural. The per-son's mental model becomes an amalgam of beliefs and assumptions that work in a new environment. Some new ideas are accepted, and some old ideas are rejected. In Figure1, the cylinder represents one's mental model and the arrows depict ideas that are taken in. The darker arrow is information that fits the mental model, and the faded line represents ideas for a differ-ent mental model. The difference between the last two stages is the relationship