Within the framework of the strategic journey undertaken between 2005 and 2010, this paper seeks to examine how the University of Melbourne sought to differentiate itself through the introduction and reconceptualisation of a "third stream" of academic work. Specifically, this paper seeks to investigate, through qualitative methods, how those in leadership roles in diverse areas of the University understood and operationalised "knowledge transfer" as a new strategic priority from 2006; and the approaches taken leading to the University's (subsequently refined) view of third stream activity as "engagement". This paper also argues that there were multiple barriers to introducing and implementing the new strategy. However, once personal linkages were created between the changed strategy and scholarly life, an organisational story developed with the potential benefits leading to opportunities through mission differentiation, without the risk of unsustainable organisational resource demands. Finally, this paper concludes that significant change is not easy, but it is possible.