First-order change goes by many different labels:

• Transactional
• Evolutionary
• Adaptive
• Incremental
• Continuous change

In second-order change, the nature of the organisation is fundamentally and substantially altered – the organisation is transformed.

Second-order goes by many different labels:

• Transformational
• Revolutionary
• Radical
• Discontinuous change

Any Organization Development (OD) interventions directed towards structure, management practices, and systems (policies and procedures) result in first-order change; and OD interventions directed towards mission and strategy, leadership, and organisation culture result in second-order change. Such interventions will touch upon Organization Climate, and Organization Culture.

Organization Climate is defined as people’s perceptions and attitudes about the organization – whether it is a good or bad place to work, friendly or unfriendly, hard-working or easy-going, and so forth.

Organization Culture is defined as deep-seated assumptions, values, and beliefs that are enduring, often unconscious, and difficult to change.

Nokia, Kodak, General Motors are classical examples of not embracing change – first order or second order.

Wherein Apple, Amazon, ICICI Bank are examples of embracing right change in the organisation.

The author works as Leadership Coach, and helps senior management executives to be effective leader. He can be reached at Shital@GrowthCatalystIndia.com.