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Learning within organisations is dependent on individuals applying shared new understandings of the nature of their organisation to generate new behaviours. In order to create a learning organisation, an environment needs to be created in which such a coordinated intellectual transformation can take place. This paper argues that a mosaic of change is needed and that some leaders are able to create effective mosaics of actions while others are not. Leaders need a guiding theory of how their people change and learn in order for them to generate the required leader actions. The key question is 'What do outstanding leaders understand about their organisation that drives them to act the way they do?' A set of service sector case studies were used to observe outstanding leaders and a model of individual learning and change is outlined. The author suggests this model may parallel the leader theory in use. The mechanisms of individual learning and change and the way outstanding leaders learn about how their employees learn are described. The leadership of change is approached from the perspective of a leader's understanding of the key mechanisms of employee change. Show less