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ACCA Strategic Professional · Strategic Business Leader · Managing strategic change

Valtor Logistics has a sound financial position and no external pressure, but its chief executive decides to restructure around digital platforms to be ahead of expected industry shifts. The change is planned over three years and is not a response to a current crisis. Using Balogun and Hope Hailey's types of change, how is this change best classified?

Evolution is correct. It is transformational change implemented incrementally and planned in advance, without a crisis. The scenario describes a major restructuring to a digital model carried out over three years in anticipation of industry shifts, which fits evolution rather than reconstruction or revolution.

  1. AAdaptation
  2. BEvolutionCorrect
  3. CReconstruction
  4. DRevolution

Explanation

Balogun and Hope Hailey classify change by scope (transformational or realignment) and by nature (incremental or big bang). A change that is planned in advance, not driven by crisis, and is incremental in timing is evolution. Adaptation is realignment through incremental steps, whereas the case describes a transformation of the business model. Reconstruction and revolution are different types.

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