Types of change an organization can go through. Change Management.

1. Types of Change

2. 2 Kinds
For the purposes of our course, we can classify Change in two ways,
FIRST ORDER INCREMENTAL
SECOND ORDER TRANSFORMATIONAL

3. 1st Order Incremental
• May involve adjustments in systems, processes or structures
• Does not involve fundamental change in strategy, core values or corporate
identity.
• Maintain and develop the organization

4. 2nd Order Transformational
Transformation is radical and fundamentally alters the organization to the core
Concentrates on transforming the organization rather than developing it

5. Whatever Floats Your Boat
The difference between 1st & 2nd Order are illustrated as follows:
A boat is afloat in the water.
(A) If we want it to stay in the same place, we must make small adjustments that
take into consideration, wind, currents, tides etc. By doing so, the boat
remains in the same position. (1st Order)
(B) If we want to take the boat beyond the original position and to a new point
we would have to adjust the sails, start the engine, steer the vessel. The
result is that the boat moves to a new position in the water. (2nd Order)

6. Scale of Change
1st Order – Seen as small incremental and adaptive
2nd Order – Large scale and disruptive

7. Home Improvement
A home construction crew garners a contract to renovate 2 houses.
(A) House #1. The crew goes in on Monday and removes the kitchen cupboards.
On Tuesday the put in new cupboards. On Wednesday they remove the
flooring. On Thursday the put in new flooring. The crew continues to make
small incremental changes until the kitchen is fully renovated. (1st Order)
(B) House #2. The crew goes in and totally rips out the kitchen. Then they tear
down the garage, put an addition on to the back of the house, lift it off the
foundation and put in a new chimney. The changes are sudden and
disruptive. (2nd Order)

8. Conclusion
Organizations usually implement change in either form; 1st Order Incremental or
2nd Order Transformational.
You company selected one or possible parts of each form to implement their
change(s).
Identify what type of change(s) took place will help us understand how to deal
with the change and what follows as a result of the change.