What is institutional transformation

Institutional transformation means a profound change within an institution which, as a consequence, also affects the outside environment. It encompasses changes in the basic values and beliefs that are dominant in a certain institution, as well as changes in the rules and regulations that lead to certain working results.

Processes of change within institutions occur continuously due to their changing environment, thus creating new demands or incentives for change. This change happens either unintentionally (thereby risking inefficiency), or in a planned and coordinated way, with executives acting as managers and coordinators. Today change management has become a professional field for internal actors, consultants and academics.