IntroductionInstitutional education leaders serve key roles in leading major curricular change within residency education, yet little is known about how they accomplish these goals on the ground. Change management principles have predominantly been developed and described in the hierarchical context of management science and corporate settings. However, the non‐hierarchical, complex and adaptive features of health professions education may render these traditional change management models inadequate. We explored how institutional educational leaders navigate the complex residency education system in implementing a major curricular change.MethodsUsing constructivist grounded theory, we conducted and iteratively analysed semi‐structured interviews with 11 institutional education leaders from across Canada who were responsible for leading the nationally mandated curricular change to competency‐based residency education. Thematic analysis was performed iteratively using constant comparison.ResultsLeaders managing the change process focused on two priorities: steering the direction of the change process as it evolved and maintaining the momentum amongst stakeholders to move forward steadily. Four common threats and opportunities impacted the focus on direction and momentum: multiplicity of contexts, innovation, resistance and distractions. In response, leaders utilised various tactics and harnessed diverse leadership styles to manage these challenges accordingly.ConclusionsWe identified a change framework that offers a more contextually nuanced understanding of curricular change in residency education that has not been described in the change management literature generated by the management sector. Institutional education leaders focused on maintaining the direction and momentum, while constantly assessing and adapting to evolving, uncertain and complex conditions. Our findings provide a simple and practical foundation to support leadership education in curricular change as well as researchers in developing further change theories in complex adaptive health professions education systems.