Learning organization literature has paid little attention to tools and models that can activate learning capabilities in organizations. This paper presents an attempt to empirically study the impact of applying systems thinking principles for service operations design, expressed as the Vanguard Method [1], in activating organizational learning capabilities. The Dimensions of the Learning Organization Questionnaire (DLOQ) was used to collect data from employees in two large service organizations operating in the UK to measure their organizational learning capabilities as a result of applying the Vanguard Method. A total of 255 questionnaires were electronically distributed and a response rate of 65.8% was received. The results of the statistical analysis show a high level of organizational learning capabilities at both organizations with an overall mean score of 4.00. The results also show that employees perceive their organizations to be highest in the learning dimensions of “Strategic Leadership”, “Empowerment”, “Dialogue and Inquiry”, and “Team Learning and Collaboration” respectively. The value of this paper is the identification of a service operations design model that can significantly enhance organizational learning capabilities to effectively improve organizational performance.