Examines why so many companies are implementing fundamental changes in the way they do business, and how a gap between actual and desired outcomes is occurring. Postulates that lack of effective behavioural change is a key reason for the gap, and develops a model for behaviour. Considers how the existing behavioural base within a company can be established, and what direction for change is indicated by environmental forces. Concludes by considering strategy for change, and the key issues which need to be addressed.