This paper focuses on a key issue for university managers, educational developers and teaching practitioners: that of producing new operational knowledge in the innovation system. More specifically, it explores the knowledge required to guide individual and institutional styles of teaching and learning in a large multi-disciplinary faculty. The case study presented outlines a sustainable approach for achieving quality enhancement of teaching and learning and producing new operational knowledge. Sustainability is achieved by linking to, and being sympathetic to, the innovative activity-led concept of learning reported in this paper. This leads to the identification of elements of evaluation that are appropriately aligned to the teaching and learning behaviours, attitudes and approaches that are critical for the innovation to be successful. Such context-sensitive evaluation elements allow meaningful feedback for the purposes of creating new operational knowledge that may then be applied and tested for on-going refinement and learning.