The purpose of the digest is to review the research on institutional transformation as it relates to institutional culture. The discussion of organizational culture's importance in institutional transformation is organized around three primary aspects of the change process: (1) readiness and responsiveness; (2) resistance to change; and (3) results of the transformation. Transformation alters the culture of the institution by changing select underlying assumptions and institutional behaviors, processes, and products. At the same time, organizational culture and cultural change can be used as a means of preparing an environment for transformation, a yardstick for assessing whether or not a transformational change has actually taken place, and a means of achieving the desired results of an innovation. The success of any transformational effort may depend on the extent to which practitioners are able to address issues of institutional culture in their strategic planning. (Contains 16 references.) (SLD)