How to Tell If Your Organization Is in “Flux”?

Most SMEs are in flux.

A state where incremental change no longer keeps pace with the rate of change in the environment.

Johnson & Scholes, in Exploring Strategy, describe flux as the period when the environment has already changed, but the organization has not yet caught up. It sits between incremental improvement and radical transformation, and it is often the most confusing phase for leaders.

AI is the cause of that flux. It has accelerated the rate of change beyond what incremental improvement can absorb.  It’s not just about adopting another tool, it’s changing how work gets done, how decisions are made, and how value is created.

This article is about recognizing that moment, when familiar improvements stop delivering results.

How can leaders tell the difference between being genuinely in flux and simply running a busy organization?

What Johnson & Scholes meant by “Flux”

In Johnson & Scholes’ model, organizations move through three modes of change:

Flux appears when incremental change is no longer sufficient, but the organization has not yet committed to a more fundamental shift.

It often feels like motion without traction.

Six practical signs your organization is in Mode 2

1. Activity is high, clarity is low

There are pilots, tools, initiatives, and workshops underway. But there is no shared view of which problems matter most or what “good” looks like.

Flux creates motion. Alignment creates momentum.

2. Your strongest people are doing translation work

Senior and mid-level leaders spend large amounts of time:

• rewriting outputs

• reconciling different versions of the truth

• manually connecting systems, teams, and decisions

When translation becomes core work, the operating model is under strain.

3. Local improvements increase system friction

Individual teams get faster, but cross-team work slows down:

• more handoffs

• more exceptions

• more rework

• more meetings to resolve misunderstandings

This is a classic flux pattern.

4. Decision-making feels heavier than it used to

Approval layers increase. Routine decisions escalate. Leaders ask for more validation before acting.

Uncertainty rises, so control rises, and speed falls.

5. Customers experience inconsistency

Not always dissatisfaction, but variability:

• uneven quality

• unpredictable turnaround times

• frontline teams improvising to meet expectations

The environment-organization gap becomes visible at the edge.

6. Strategy sounds like options, not choices

There are many “we should” conversations, but few clear trade-offs.

Flux often shows up as strategic overload.

A quick self-check for leaders

Ask yourself:

• Are we still improving within our existing workflows, or are those workflows themselves under question?

• Are we adding tools faster than we are redesigning how work actually happens?

• Are people tired of change, yet convinced we cannot stop?

If the answer to all three is yes, you are likely in Mode 2.

Flux signals a decision point.

In the next article, we will explore how to decide whether incremental adaptation is still viable, or whether a radical step change is required.