The main purpose of this paper is to take stock of some of the most significant results emanating from The International Development Research Centre (IDRC)‐supported programmes, in recent years in the area of organizational capacity development, and feeding into the consultation process for the formulation of IDRC`s next Corporate Strategy Program Framework (CSPF) for the 2010‐2015 period.

Many capacity development (CD) programs and processes aim at long‐term sustainable change, which depends on seeing many smaller changes in at times almost invisible fields (rules, incentives, behaviours, power, coordination etc.). Yet, most evaluation processes of CD tend to focus on short‐term outputs focused on clearly visible changes.

In this article is presented an emergent capacity development approach that the authors have developed through participatory action research in Peru and Ecuador, which they call ‘systemic theories of change’ (STOC), for organisational capacity development. They argue that capacity development should be understood as systemic learning. The STOC approach promotes reflection about how we as individuals, organisations, and broader social groups and societal configurations, understand how change occurs.