Strategic Business Leader · Managing strategic change

Types of Strategic Change: Balogun and Hope Hailey Matrix for SBL

Updated 11 October 2026 · Fact-checked

Balogun and Hope Hailey classify change by two questions: how deep is the end result (realignment or transformation) and what is its scope (incremental or big bang). This gives four types: adaptation, evolution, reconstruction and revolution. In SBL you identify the type from the scenario and justify it.

Understand Types of Strategic Change

Strategic change alters how an organisation operates in a major way. It is not routine tweaking. Before you can plan change, you must name what kind of change you face. The type shapes the approach, the risk and the likely resistance.

Balogun and Hope Hailey, in their change matrix (often shown with the change kaleidoscope), use two dimensions. The first is the nature of change, meaning the end result. Realignment changes how things are done but stays within the existing culture and paradigm. Transformation changes the paradigm, meaning the shared assumptions that drive the organisation. The second is the scope of change. Incremental change happens one part of the organisation at a time. Big bang change happens across the whole organisation at once, and is usually fast.

Combining the two gives four types:

Adaptation: realignment achieved incrementally. The organisation changes one part at a time, in small steps, within its current culture. It is the most common type and the least disruptive.
Reconstruction: realignment achieved by big bang. It is wide and usually fast, and often painful, such as restructuring, cost cutting or redundancies, but the paradigm survives. It can be appropriate where there is a crisis or little time.
Evolution: transformation achieved incrementally. The paradigm changes, but one part at a time, over a longer period. It needs time and is usually planned in advance.
Revolution: transformation achieved by big bang. Wide and deep change to the culture and strategy across the whole organisation. It can be appropriate where there is a crisis or little time, such as a takeover or a collapse in demand.

A useful test: ask whether the culture and core assumptions change (transformation) or only the way work is done (realignment). Then ask whether change happens across the whole organisation at once or one part at a time.

The type is not a matter of taste. It depends on context. The change kaleidoscope sets out eight context features: time, scope, preservation, diversity, capability, capacity, readiness and power. In the kaleidoscope, scope means how much change is needed, from realignment to transformation, so do not confuse it with the matrix's scope dimension. You will study the kaleidoscope with the related topic. In the exam, link the type to the scenario, then say whether it suits the circumstances.

Key rules to remember

Adaptation: Realignment + Incremental; Small steps, one part at a time, within the existing paradigm. Lowest disruption. Suits a stable, healthy organisation with time.
Reconstruction: Realignment + Big bang; Whole organisation at once, usually fast and often painful, paradigm kept. Can suit a crisis or little time: restructuring, cost cuts, redundancies.
Evolution: Transformation + Incremental; Paradigm changes one part at a time. Needs time and a planned, sustained effort.
Revolution: Transformation + Big bang; Wide and deep change of culture and strategy across the whole organisation. High risk, high resistance. Can suit a crisis or little time.
Classification test: Nature of change (realignment or transformation) × Scope of change (incremental or big bang); Always state both dimensions when you name a type.

How to solve Types of Strategic Change questions

Use this method for any question asking you to identify, compare or evaluate types of strategic change.

1Read the requirement. Decide whether you must identify, explain, compare or recommend a type of change.
2Find the evidence in the scenario on end result: does the culture, mission or business model change, or only processes and structures?
3Find the evidence on scope: is change made one part at a time over years, or across the whole organisation at once?
4Place the change in the matrix and name the type. State both dimensions in a sentence.
5Apply it: quote scenario facts such as dates, job losses, new products or new leadership to support your label.
6Evaluate fit with context: time, crisis, resources, staff capability and power. Say whether the chosen type is suitable.
7Add consequences: likely resistance, risks and how to manage them, then give a clear conclusion or recommendation.

Quickest way: Two-question matrix check

When to use it: Use this when time is short and the question asks you to label a change or give a quick recommendation.

Ask question one: does the culture or paradigm change? Yes means transformation. No means realignment.
Ask question two: is change made across the whole organisation at once, or one part at a time? Whole organisation at once means big bang. One part at a time means incremental.
Name the type: realignment and incremental is adaptation, realignment and big bang is reconstruction, transformation and incremental is evolution, transformation and big bang is revolution.
Write one sentence of scenario evidence for each dimension.
Close with one sentence on whether the scope and speed suit the situation, such as crisis versus time available.

Common mistakes in Types of Strategic Change

Naming the type without justifying it from the scenario.
Students memorise the four labels and treat the question as a recall test.
Fix: Always quote at least two scenario facts, one on the end result and one on the scope.
Confusing reconstruction with revolution.
Both are big bang and both feel dramatic, so the difference in end result is missed.
Fix: Ask whether the culture and paradigm change. If only structures or costs change, it is reconstruction. If the paradigm changes, it is revolution.
Treating evolution as simply slow change.
Students focus on speed and forget the nature dimension.
Fix: Evolution is transformational and incremental: the paradigm changes, one part at a time. Gradual change within the existing culture is adaptation.
Assuming big bang is always bad and incremental is always good.
Incremental change sounds safer and more people-friendly.
Fix: Judge by context. In a crisis with little time, big bang may be the only option. Incremental change can be too slow.
Mixing up these types with change management styles such as education or coercion.
Both appear in the same chapter and both use change vocabulary.
Fix: Types describe what change is. Styles describe how it is managed. Keep them in separate paragraphs and then link them.

Worked examples

Example 1

Zentra Retail has three years of falling sales. The new CEO closes 40% of stores, makes 2,000 staff redundant and centralises purchasing within six months. The board says the company will remain a value-for-money high street retailer with the same values. Identify the type of change using Balogun and Hope Hailey, and assess its suitability.

Show the solution

Nature of change: the business model, values and positioning stay the same, so the paradigm is kept. This is realignment.
Scope: store closures, redundancies and centralisation happen across the whole company at once, within six months. This is big bang.
Realignment plus big bang is reconstruction.
Suitability: three years of decline suggest a need for urgent action, and little time is available, so fast change is justified.
Risks: redundancies cause fear, low morale and loss of key staff. Resistance may be strong, so the CEO needs clear communication and support for those who remain.
Conclusion: reconstruction fits the crisis, but it fixes cost problems and does not change the paradigm. If the market has shifted, deeper change may be needed later.

Answer: The change is a reconstruction: realignment achieved by big bang. It suits the urgent situation but carries morale and resistance risks, and it may not solve deeper strategic problems if the paradigm itself is outdated.

Example 2

Explain the difference between evolution and revolution as types of strategic change, using the example of a traditional publisher moving to become a digital-first business.

Show the solution

Both involve transformation, because the culture and the core assumptions about how the business creates value change.
They differ in scope. Evolution is incremental: change comes one part at a time over a longer period. Revolution is big bang: change comes across the whole organisation at once, and is usually fast.
Evolution example: the publisher launches e-books, then subscriptions, then data-driven products over several years. Staff skills and culture shift gradually. This needs time, so it works when no crisis forces speed.
Revolution example: after print revenue collapses, the board closes the print division, replaces management and relaunches as a digital platform within a year.
Compare risks: evolution can be too slow if competitors move fast, and momentum may fade. Revolution can trigger strong resistance, loss of knowledge and disruption.
Conclusion: choose according to context, mainly time available, urgency and the organisation's capacity to absorb change.

Answer: Evolution and revolution both transform the paradigm. Evolution does it one part at a time and needs time. Revolution does it across the whole organisation at once, and can suit a crisis or little time. The publisher should choose according to urgency, resources and staff readiness.

Exam tips

Always state both dimensions, nature and scope, when you label a change. A label alone earns little.
Use scenario evidence such as dates, job numbers and new strategy statements to show application and professional skills.
Evaluate, do not just describe. Say whether the type suits the context, and mention resistance and risk.
Link types to context and style. A strong answer connects the type to the kaleidoscope context and to a suitable management style.
If the scenario shows a mix, say so. Different parts of the organisation may undergo different types of change.

Practice questions from Managing strategic change

Types of Strategic Change: frequently asked questions

What are the four types of strategic change in SBL?

They are adaptation, reconstruction, evolution and revolution. Adaptation and evolution are incremental. Reconstruction and revolution are big bang. Adaptation and reconstruction are realignment, while evolution and revolution are transformation.

What is the difference between evolution and revolution change?

Both change the paradigm of the organisation. Evolution does so incrementally, one part at a time over a longer period, while revolution does so as a big bang across the whole organisation at once. Revolution can be appropriate where there is a crisis or little time.

Is big bang change better than incremental change?

Neither is always better. Big bang suits urgent situations with little time, but it risks high resistance. Incremental change is less disruptive but may be too slow when the environment moves quickly.

How is this topic different from the change kaleidoscope?

The types of change describe what kind of change is happening. The kaleidoscope analyses the context that shapes the design of change, using features such as time, preservation, capability and power. Exam questions often need both.