An activity theoretical analysis is presented of an organization that is op
erating in a rapidly changing sector and whose competitiveness depends sign
ificantly upon the design skills of its engineers. The company designs high
-technology make-to-order products. Like other organizations that compete t
hrough knowledge and innovation, the prosperity of this company depends upo
n its organizational learning, that is, upon the effectiveness with which i
f can mobilize, apply and develop its distinctive knowledge base as circums
tances change. In the difficult context that the company faces, the speed w
ith which projects can move from the initial concept phase through design t
o production has to become especially important. The paper outlines a gener
al strategy that was developed as the company sought to control this proces
s and traces the consequences for design practices. An activity theoretical
approach is used to model the changes that were attempted and the outcomes
which emerged and to introduce a discussion of possible future options. Th
e approach (i) emphasizes the relevance of a historical perspective on orga
nizational change, (ii) features the changing nature of expertise in contem
porary manufacturing and (iii) discusses the potential significance for col
lective learning of tensions and incoherencies within a work system.