Leading corporations are focusing on generative learning, which is about creating, as well as adaptive learning, which is about coping. The total quality movement in Japan illustrates the evolution from adaptive to generative learning. With an emphasis on continuous experimentation and feedback, this movement has been the first wave in building learning organizations. Leadership in learning organizations starts with the principle of creative tension. This principle teaches that an accurate picture of current reality is as important as a compelling picture of a desired future. In learning organizations, the critical roles of leadership are as designer, teacher, and steward. In these new leadership roles, 3 critical skills are: 1. building shared vision, 2. surfacing and challenging mental models, and 3. engaging in systems thinking. These skills must be distributed throughout the organization.