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This paper describes a scheme designed to encourage staff development in tertiary education using an action-learning approach. Action learning is contrasted with formal qualifications in a scheme for staff development. The paper details how the provision of small strategic grants and project management support has enabled a series of action learning projects to be undertaken to improve teaching and learning at RMIT University. RMIT University is a dual-sector institution which provides both TAFE and higher education programs. The strategic features of the scheme's design and implementation are outlined and the impact of these features on students and staff is discussed, together with the benefits for the organisation. Outcomes, issues to consider, and pitfalls of a number of projects are considered.