This paper proposes a new equilibrium concept–organizational equilibrium–for models with time inconsistency problem. We show that the organizational equilibrium significantly improves the welfare upon the Markov equilibrium, without relying on standard trigger strategy. Furthermore, the equilibrium has the feature that the time inconsistent issue is resolved gradually over time. We apply this equilibrium concept to a quasi-hyperbolic discounting growth model and a Ramsey taxation problem, in which the allocation gradually transits from that under Markov equilibrium towards that under commitment.