Strategic Management: Formulation and Implementation

Three Basic Forms Of Change

These three kinds of movement help distinguish three basic forms of change:

Identity changes
These changes are related to macroevolutionary forces, to the motion in the environment and the organization's own capacity to endure over time as a factor in that environment. Organizations can change their relationships to their environments by restructuring or redefining their identity and boundaries through mergers, acquisitions, divestures, or alliances and partnerships. The most extreme version of identity change is when an organization becomes something entirely different (in its businesses, products, ownership, and so on).
Coordination changes
These kinds of changes relate to microevolutionary dynamics. Organizations can change the ways in which they operate, the ways people and unit relate to each other, corresponding to their organic development over time, through changes in internal coordination their culture and structure.
Changes in control
Changes in control that stress the political dimension, who is in the dominant coalition, or which interests or set of interests predominates, who owns and governs the organization. This leads to makeover through takeover or other changes triggered by shifts in ownership or governance.