Companies often fail to solve the learning dilemma because they define learning too narrowly as "problem solving" and they assume that learning is largely a matter of motivation. However, effective learning is a reflection of how people think; therefore, the learning dilemma can be overcome when managers and employees make the ways in which they reason about their behavior a focus of organizational learning and continuous improvement programs. People at all levels of professional development must not only master the techniques of their particular occupation but must also learn to work effectively in teams, form productive relationships with clients, and critically reflect on and change their own organizational practices. Defensive reasoning is prevalent among executives who have rarely experienced failure and end up not knowing how to deal with it. Learning how to reason productively is the key to continuous and effective improvement.