Organisational Change Practice Areas
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Contents
Introduction
A clear definition is important because it clarifies what is changing, why it is changing, and how to distinguish different types of change.
Within this website, organisational change is defined as:
“The adaptation of an organisation’s Enterprise System and, where necessary, its Governing Logic to enable the realisation of its strategy and objectives.”
This definition situates organisational change within the broader context of strategy, organisational capability, and Operational Continuity. The following sections explain this relationship.
Alternative Definitions of Organisational Change
Review alternative perspectives on organisational change and consider how they relate to the definition used here.
Make The Comparison
Strategy Is Executed And Realised Through Operational Continuity
This website maintains that strategy is executed and realised through the ongoing use of organisational capabilities to fulfil the organisation’s purpose and achieve its objectives.
This continuing use of organisational capabilities is referred to on this website as Operational Continuity.
The term is preferred over Business As Usual (BAU), not because BAU always means routine or unimportant activity, but because it can imply those meanings. Operational Continuity highlights that ongoing operations are essential to strategy execution and realisation.
Operational Continuity does not mean operations are routine or unchanging. Organisations may respond to new circumstances, handle complex tasks, and adjust how they use capabilities. The key distinction is between using organisational capability and adapting it. Operational Continuity involves the former; organisational change adapts the Enterprise System and, if needed, its Governing Logic.
Operational Continuity Depends on the Enterprise System
Operational Continuity depends upon the organisational capabilities available to fulfil the organisation’s purpose and execute its strategy. Within this framework, the organisation’s Enterprise System provides those capabilities: the interconnected Business Model, Value Chain, Operating Model, and Culture through which the organisation creates value and operates.
These elements are interconnected. Changes to one can affect the others and collectively alter the organisation’s capabilities and how it uses them.
The Enterprise System is influenced by the organisation’s Governing Logic, which shapes value creation, decision-making, authority, and operations. While analytically distinct, Governing Logic and the Enterprise System influence each other. The constructs of Enterprise System and Governing Logic are explored here.
When Organisational Change Becomes Necessary
“…the adaptation of an organisation’s Enterprise System…”Sometimes, the challenge is deeper. The principles shaping the Enterprise System may be outdated or uncertain. In these cases, the Governing Logic must be reconsidered. This explains the second part:
“…and, where necessary, its Governing Logic…”
The relationship between strategy and organisational change, explored here, is not always linear. When fundamental assumptions are questioned, exploration and learning may redefine required capabilities and inform ongoing strategy development. Organisational change links strategy to capability by adapting the Enterprise System and, if needed, its Governing Logic, enabling the organisation to better achieve its strategy and objectives.
Two Orders of Organisational Change
If required capabilities can be developed by adapting the Enterprise System while the Governing Logic remains appropriate, the organisation is undergoing First-Order Change. This changes operations without altering core principles and assumptions.
If the Governing Logic is no longer appropriate or its suitability is uncertain, the organisation faces Second-Order Change. This involves reconsidering the principles shaping the Enterprise System. Second-Order Change does not assume the Governing Logic will change; instead, exploration and learning determine if and how it should change.
This distinction is not based on scale, cost, complexity, or disruption. In this framework, it depends on the organisational level of change. Large, complex changes may still be First-Order, while Second-Order Change involves questioning the Governing Logic. The two constructs are explored here.
Organisational Change Enables Strategy Realisation
Organisational change and strategy realisation are closely linked but distinct. Organisational change adapts capabilities, while strategy is realised by using those capabilities in Operational Continuity.
Designing, developing, or implementing a new capability alone does not realise strategy. A new operating model, platform, or service becomes strategically significant only when it is used operationally and contributes to the organisation’s objectives.
This distinction does not depend on the formal end of a change initiative. Changed capabilities may enter Operational Continuity gradually, with benefits emerging as they are used, not just when the initiative concludes.
The boundary between organisational change and Operational Continuity is conceptual, not strictly chronological. Organisational change adapts capability; Operational Continuity involves its ongoing use.
Organisational change adapts capability. Operational Continuity uses that capability to execute strategy and deliver value.
What Is Organisational Change Management?
If organisational change defines what is being adapted and why, organisational change management addresses how to achieve that adaptation.
Within this framework Organisational Change Management is:
“The coordinated leadership, governance, design, delivery and change engagement through which organisational change is conceived, directed, implemented, adopted and sustained.”
Organisational change management is an enterprise activity that integrates leadership, decision-making, specialist practices, and delivery capabilities to achieve change. It is not limited to a single role, function, or practitioner.
Various practice areas contribute expertise to this activity. In this framework, these include Initiative Management, Change Architecture, and Change Engagement, all integrated and supported by the Enterprise Change Office.
Different Meanings of Change Management
The term Change Management has varying scopes. Consider how these differences affect what is included in the practice areas.
Explore The Distinction
Bringing the Definition Together
Organisational change adapts the Enterprise System and, where necessary, its Governing Logic to provide the capabilities the organisation requires.
Those capabilities enable strategy realisation through their use in Operational Continuity, while Organisational Change Management coordinates how the change is brought about.