As communities respond to challenges, threats and opportunities, organisations are changing in significant ways--new organisational designs, new communities of practice, new skills and new forms of human capital are sought. Yet K-12 school systems appear to be permanently failing organisations, not changing despite being shrouded by the rhetoric of change and entrapped in the competing expectations of different stakeholders. Using the idea of creative design and innovation as the cornerstone for learning and a focus on wicked problems for authentic audiences for the work of students and teachers, this article explores the opportunity of such a change and the barriers to enactment. Case examples are given of problem-based learning with design at the heart of the learning process and an analysis of schools as permanently failing organisations is provided. Since the human capital needs of the 21st century require different skills from those of the last century, this approach is seen as essential. It demands a transformation of our schools, not continuous improvement.