Level 3 in Dunphy and Stace's Model is Modular Transformation. Which statement best describes this level?

• A. It affects the entire organization
• B. It is slow and steady
• C. It is radical and focused on subparts
• D. It only changes culture

Answer: (C)

Level 3, Modular Transformation, describes radical changes that are concentrated in specific subparts of the organization rather than sweeping the entire system. The idea is to overhaul a particular module—such as a division, product line, or set of processes—while the rest of the organization continues with its current setup. This allows a bold, high-impact change to be implemented more quickly and with less risk to the whole organization, and it often serves as a pilot that can be scaled to other modules later. It’s about targeted transformation of subsystems rather than broad, organization-wide change.

Choosing that option makes sense because it captures the essence of focusing bold, structural changes within defined subunits. The other statements describe different scales or aims of change: affecting the entire organization points to a broader corporate transformation, slow and steady indicates incremental change, and changing culture alone doesn’t reflect the modular, subsystem-focused nature of Level 3.