This document discusses knowledge-based governance and organizational learning for improved performance in local governments. It proposes using action research and action learning approaches to move from data to wisdom. This involves analyzing governance practices to build capacity for continuous quality improvement through learning leadership. The goal is evidence-based policies and services rather than ideological approaches. Action learning and research contribute to capacity building by being change-oriented, reflective, cyclic, qualitative, and participative. This helps answer four leadership questions to enhance individual, institutional and systems-based learning for continued performance improvement.