This paper discusses the use of DEMO methodology in managing organization change using Activity
Theory contradictions. Contradictions, according to Engestrm , are essential elements in the Activity Theory and can be regarded as historically accumulated structural tensions within and between activities that generate problems, failures and conflicts that at the same time become the ability of an activity to develop itself .Contradictions are constant within the activity system, and their perception and resolution is a natural form to improve activities. A new structure of an activity emerges based on the reflection and analysis of the preceding structure due to the fact the previous work of the people in the organization i.e. their actions either conscious or unconscious are not rigid and arises from the contradictions perceived by them.