This is an analytical study of organizational transformation, values that must be present and operationalized for organizations to successfully change, and the role that leadership has in facilitat ing that change. Specifically, using De Geus' model of living and economic companies and taking input from key theorists such as Senge, Quinn, Bolman and Deal, and others, this study examines and analyzes the values and guiding principles that facilitate an organization's ability to transform, quali ties the leadership must possess and how leadership must function as catalysts to facilitate and ener gize successful, positive change.