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The purpose of this paper is to show how work-based and work-applied learning (WAL) can enhance the intellectual capital of organisations.

The paper draws organisational learning- and work-based learning literature and case study illustrations.

To achieve major strategic change in organisations requires working at senior level within the organisation to develop the capability of the organisation to learn and apply that learning strategically. WAL is explicitly geared to bring about change and enhance the learning capability within the organisation.

There is a need for further longitudinal studies of organisations that have used the work-based and WAL approaches.

The conclusions reached have implications for higher education and non-award bearing executive education.

The alignment of individual learning with organisational objectives positions learning as a co-operative part of working life rather than just individual preparation for employment.

The paper positions work-based learning and WAL as appropriate responses to the learning needs of organisations as well as individuals.