The Management Challenge Online (TMCO) is a ten week online management course that begins for a cohort of 30 in the week immediately following their attendance at a residential three-day training school. This paper examines the evolution of TMCO over the inaugural two year period, detailing the cycle of evaluation and development within a culture of continuous improvement. The paper provides examples of successful activities and scheduling with supporting pedagogy. The paper also looks ahead to next steps for TMCO and how the course will be supplemented with sessions in the virtual world Second Life.

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