Just what is the core concept of organizations? The question is posed as “what is the organization of organizations?” The answer is interdependence. Beginning with the concept of a process and its framework, the notion of an entity is extended to Processual Agents. A Processual Agent is anything that can effect a process. The discussion turns to potential, defined, and manageable interdependencies with examples of each. Many traditional management methods are viewed in terms of their effects in reducing potential interdependence in order to cut it down to manageable proportions. The discussion of Processual Agents is extended to organizations. This leads to a proposed structure for levels of interdependence and a summarizing principle called the cascade principle. Next the discussion turns to a new analysis of organizational change which examines the concepts of an organizational space and the summarizing conclusion called the cushioning principle. It is argued that the cascade and cushioning principles provide processes for maintaining and stabilizing organizations in the face of change. Examples are provided for the major concepts. The text is formalized in the form of ten axioms, twenty‐two propositions, and two summarizing principles.