This document discusses learning organizations (LOs). It defines LOs as organizations that can learn and adapt to create new futures. Key characteristics of LOs include system thinking, team learning, shared vision, mental models, and personal mastery. LOs acquire and share knowledge to modify their behaviors. While converting all organizations to LOs seems ideal, failure rates for large change initiatives are high due to issues like top management intervention, politics, and resistance to change. Some examples are given of companies that have adopted practices similar to LOs and have seen great success, including improved market share and valuation. These new generation companies differ from traditional organizations in their structures and cultures.