, the ability to change is central to the success of any organization. On the other hand, while change is ultimately required to adapt to a changing environment, the success of any organization depends on the capability to maintain stable and reproducible organizational processes and outcomes. Apple improving its smart phone and coming out with a new model with additional features. Replaces what already exists with something completely new. Requires the organization to depart from old methods. Ex. retail company completely changing its customer return policy . So, the old policy is discontinued and a brand new one is implemented. Transforms the future state from the current state dramatically. Employees and their mindsets, behavior, and culture must change to successfully implement this type of change. Theory e change: theory of change that has as its purpose the creation of economic value, often expressed as shareholder value. Its focus is on formal structure and systems.