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How do people, who continuously develop new products, develop and change their organization? Is there something to learn from the apparent similarity in non‐routine characteristics of both new product development and organizational change? The aim of the paper is to increase our knowledge about the management of change in environments characterised by a large portion of non‐routine work. The paper is based on a case study of radical change of product development operation in Volvo Car Corporation. The study documents both the change process and the nature of the product development organisation before and after the change effort. The discussion highlights some of the challenges in facilitating multiple mechanisms for change in a complex product development environment.