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This paper describes how the authors and employees of a national research laboratory collaborated in a major organisational change initiative. Instead of positioning themselves as trainers or educator-consultants who instructed employees on the process of change, the authors collaborated with teams of employees and jointly developed a project management system and a new approach to process improvement. The authors introduced and facilitated a strongly participatory, collaborative and experience-based process of communication and a model of action research that enabled employees to manage projects and develop measures of performance as they learned to work together in reflective practice while doing action research. The results to date indicate that members of the organisation have changed their way of doing business together and are prepared to conduct action research as a means of planning and assessing their performance improvement efforts.