Action research and action learning have been applied in a shared service organisation as part of a global financial institute. Shared services aim for benefits, such as economies of scale and quality improvements for internal clients. However, various research indicates that there are also side effects. This research project starts from known issues of a local shared service entity with regard to its shared service delivery to clients and end-users. The concept of competencies and capabilities, as key focus areas to differentiate in competition, is applied through action learning sets. Based on two action cycles, primary and secondary data are captured, analysed and processed. Action learning is achieved for the learning set members for their personal development. The organisation also gains learning and competency from the project. Finally, the project suggests solutions to performance and quality issues as well as knowledge to apply action research and action learning in future projects. Limitations and directions for future research are also presented
