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Transformistic theory emerged in the 1970s in an effort to predict the kinds of organizations that would be most successful in uncertain or highly turbulent environments. This theory posits that in uncertain environments, organizations must generate transformation on multiple levels—individual, organizational, and societal—if they are to change in ways that will ensure both their own viability and the overall wellbeing of society. At the same time, transformistic organizations must maintain focus and stability by remaining true to their core values and ethics. The theory later incorporated many of the ideas associated with transforming leadership and fundamentally realigned the roles, missions, and functioning of organizations in volatile environmental contexts.

Many of the concepts about uncertain or turbulent environments had their origins in the early writings of the scholars Warren Bennis and Philip Slater (1968), Donald Schon (1971), and Fred Emery and Eric Trist (1973). Dynamic processes emerge and thrive in environments fraught with change. These changes in the environment are self-perpetuating and complex. Emery and Trist use an ecological example from the fishing and lumber industries. In those industries, competitive business strategies that are based on the assumption of a static environment, may (through overfishing and overcutting) lead to disastrous repercussions in the fish and plant population, ultimately causing the destruction of all the competing systems. In human populations, momentous events, such as the fall of the Berlin Wall, the reconfiguration of the former Soviet Union, worldwide terrorist attacks, and the rise of struggling democracies, trigger complex and unpredictable dynamic processes, both positive and negative.

Contrasting Bureaucratic, Organic, and Transformistic Organizations

Transformistic organizations differ in significant ways from bureaucratic and organic entities. Bureaucratic organizations are compatible with stable environments and authoritarian leadership. They function in a world of explicitly formulated goals, rules, and procedures that define and regulate the place of their members. In the traditional bureaucratic world of specialization and expertise, individuals' roles are minutely specified and differentiated.

Organic organizations flourish in changing environments and utilize transactional leadership to compete with numerous similar organizations. In this environmental context, organizations face unique and unfamiliar problems that cannot be broken down and distributed among specialists in the hierarchy. Broad operational procedures, rules, and practices guide the work of functional units. Workers possess an overall knowledge of their organization's purpose and circumstances. Lateral and vertical consultation typifies the communications in such organizations, in contrast to the vertical chain of command present in bureaucratic organizations.

Transformistic organizations flourish in turbulent, uncertain environments. There is interconnectedness to promote mutually beneficial interactions between and within organizations, and frameworks and ethics are used to align organizations. The leadership is transforming; that is, leaders seek to inspire organization members to achieve an ennobling vision. Shifting goals, priorities, and methods of operation characterize transformistic organizations. Organization members with multiple capabilities and skills carry out work in fluid, temporary units; the organization encourages their continuous development and the application of their skills in new and varied situations.

Transformistic theory also links organizational form, leadership, and behavior to the environment. Among the assumptions underlying transformistic theory are that advancements in science and technology have greatly improved access to information and resources and that the increased access has, in turn, expanded the capacity of individuals, governments, and businesses to act. In addition, transformistic theory assumes that individuals, groups, and organizations use information and resources to generate collective, individual, and diverse actions—intentionally or randomly, advantageously or adversely, sequentially or concurrently. Further, these actions increase complexity and uncertainty in social and natural environments.

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