Transforming Government ThroughChange Management THE …...zational transformation for the state...

THE ROLE OF THE STATE CIOTransforming Government Through Change Management:

NASCIO represents state chief infor-mation officers and informationtechnology executives and man-agers from state governments acrossthe United States. For more informa-tion visit www.nascio.org.

Copyright © 2007 NASCIO All rights reserved

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1Transforming Government Through Change Management

NASCIO: Representing Chief Information Officers of the States

I. Introduction

This white paper is presented as a refer-ence on change management and organi-zational transformation for the state ChiefInformation Officer. The intention of thisreference is to recognize some of the cur-rent thought regarding change manage-ment and enterprise transformation. Thework of John Kotter, Shawn Burke, et al.,the U.S. Government Accountability Officeand others will be reviewed. The commonpoints of these expertise centers will besummarized. This report is not relateddirectly to change management from aninfrastructure perspective. Rather, signifi-cant organizational transformation will bestudied with the intent of gleaning “takeaways” for the state CIO. The CIO will mostlikely not implement all of the approachespresented, but will pick and choose con-cepts most relevant for his or her specificcircumstances. OrganizationalTransformation is a new management dis-cipline. Consider this white paper to bean introductory survey of the subject ofchange management and organizationaltransformation.

Why should states care aboutchange management and organiza-

tional transformation?

First, there is an immediate opportunityfacing states with the transitioning

processes now underway. Second, as BillEggers had presented in the November,2006, issue of Governing’s ManagingInsights, if change is going to happen, itwill most likely happen at the state level.1

According to Eggers – a rare opportunitynow presents itself. He recommends thatstates not reform – rather transform – inorder to address major issues such as:

� An education system that is out per-formed by foreign competitors

� Under-funded public pensions� $1.6 trillion in infrastructure deficits� Medicaid costs that are out of control

– affecting 53 million Americans� An Aging population� Globalization

The article by Eggers drew commentsfrom Jerry Mechling that also present theidea that the time is now. And . . . thepath to transformation is enabled by infor-mation technology.2 NASCIO will make afurther qualification – the path to govern-ment transformation is through enterprisearchitecture.

II. Change – Fast and Continual

State government is facing a number ofdramatic changes from Medicaid reformand burgeoning regional health organiza-tions (RHOs), an aging workforce, an agingpopulation, more and more need to domore with less, changing expectations

Transforming Government through ChangeManagement: The Role of the State CIO

NASCIO Staff Contact: Eric SwedenEnterprise Architect [email protected]

1 A Window of Opportunity for New State Leaders, by Bill Eggers, GOVERNING.com, November 22, 2006, retrieved from

http://www.governing.com/manage/mi/6ins1122.htm on February 28, 2007.2 The Transition: a Dark- Horse Opportunity, by Jerry Mechling, GOVERNING.com, December 6, 2006, retrieved from

http://www.governing.com/manage/mi/6ins1122.htm on February 28, 2007.

tions have secondary and tertiary effectson the lives of every citizen. What arethese effects? Can we continue to operateeffective government in increasinglyuncertain times? This uncertainty isreflected in national defense, the war onterror, global economics, environmentalprotection, public health, healthcare, andthe quality of life.

Newt Gingrich and Nancy Desmond havedescribed what they term as “profoundchanges” we can expect between now andthe year 2030 that will require seven sig-nificant transformations.

Seven Profound Changes

1. National Security

2. Health and Healthcare

3. Education in general and, math and

science in particular

4. Government Management

5. Taxation

6. Litigation

7. Energy and the Environment3

Gingrich and Desmond go on to describethe current crises, and the need for gov-ernment to transform itself into an enter-prise that can change from a bureaucraticpublic administration to a 21st CenturyEntrepreneurial Public Management basedon a new “information-age” system oftransformation.

The state CIO has risen to and must beseen within state government as a changeleader who leads and facilitates govern-ment organizational transformationefforts in support of and in coordinationwith the agenda of the governor, the statelegislature and the state judiciary. Thoseagendas must in turn reflect the agendaof the citizens of the United States.

from citizenry, more collaborative relation-ships with federal government. Change isthe norm and its velocity is increasing.States are responding with a variety ofsolution paths including, outsourcing,insourcing, shared services, consolidation,and potential intergovernmental collabo-rations, partnerships and purchase agree-ments. Collaborative relationships thatcross lines of business are on the rise. Allstates are facing dramatic change. Inmany cases, the state CIO is still in “sellmode” - communicating the anticipatedbenefits of proposed significant change /transformation. How is significant change/ transformation, or organizational trans-formation, achieved?

As state government faces new challengesit must recognized that change hasbecome an inherent characteristic of anyorganization. As information technology,and knowledge management capabilitiesarrive on the horizon, change will becomeeven more rapid. Global economicdynamics are having an impact on everyfacet of American life. And citizens arelooking to government to provide leader-ship and vision in an uncertain world.

Government exists to protect and main-tain national security, public safety, and toprovide public services and other institu-tions that benefit American society.Beyond this basic list, government is inplace in the United States to maintain anenvironment of opportunity. Various rolesare played by federal, state and local gov-ernment. We can’t forget the citizens’ partin this relationship. The citizen respondswith national loyalty, allegiance, and partic-ipation in the democratic process.

In order for government to fulfill its role, itmust continually transform itself withinthe bounding of the constitution to deliv-er on its mission within an environmentthat is more and more uncertain.Macroeconomics are continually trans-forming the landscape. These transforma-

Transforming Government Through Change Management2


3 Gingrich, N., Desmond, N., The Art of Transformation, CHT Press, 2006. ISBN 1-933966-00-9, p. 12


Transforming Government Through Change Management 3

Therefore, the state CIO must acquire andcontinually hone skills in leading changeand organizational transformation initia-tives. The state CIO must be able to assim-ilate a myriad of information regardingthe aforementioned uncertainties, anddeliver government capabilities that pro-tect the interests of the citizens. So, how isthis done? How is government organiza-tion transformed? And how is this trans-formation perspective embraced within anongoing operation that reshapes itself asnecessary to effectively identify challenges,understand the impact of these challenges,and launch appropriate response?

This white paper presents that morethan any other skill, the change leadermust be a communicator. Characteristicsof effective CIOs include the following.Exemplary communications skills areinherent in each of these charateristics.� Listening more than telling. � Managing relationships one at a time. � Establishing trust within the organiza-

tion. � Maintaining a sense of mission that is

focused on ultimate outcomes. � Motivating associates who are dedicat-

ed to serving state citizens. � Providing the capabilities to associates

to initiate change. � Engaging the necessary resources,

wherever they may be found� Delivering results

And all of this must be done within thelimited tenure of a state CIO.

III. Kotter’s “list of 8”

Among the premier experts in change man-agement is John P. Kotter. Kotter presents aculmination of practical experience in hisbook, Leading Change. Kotter originallypublished an article in the summer of 1994titled “Leading Change: Why TransformationEfforts Fail.” In this book as in his often citedHarvard Business Review article Kotter pres-ents his experience in consulting with over

4 Kotter, J.P., Leading Change, ISBN 0-87584-747-1, Harvard Business School Press, 1996

100 organizations that have launched trans-formation initiatives.4 He states that manyof these initiatives were successful andmany were total failures. Most of these ini-tiatives were somewhere in between pro-ducing some successes and carrying somefailures. Based on this experience, Kotterdeveloped an 8-step process for avoidingthe errors he has observed.

Kotter also makes a strong case for prop-erly sequencing these process steps.Skipping steps in this sequence has provento be problematic. The process steps arelisted below with further interpretation andsummarization. Detail descriptions andanecdotes are presented in John Kotter’sbook, Leading Change. (See Figure 1)

1. Establish a Sense of UrgencyExamine market forces facing the organi-zation and the impact of these forces.Identify and discuss the impending crises,and market forces including opportuni-ties. Examine what factors are contribut-ing to complacency and eliminate them.Modify internal performance measuresand metrics that create barriers to change.

2. Create a Guiding CoalitionEstablish a team of leaders that are credi-ble, have authority, have expertise in thearea of focus. This coalition must work asa team. There needs to be the proper mixof management and leadership skills. Tryto avoid large egos and people who cre-ate mistrust. Trust is a foundational char-acteristic of any change or transformationinitiative. Humility is another importantcharacteristic of effective change leaders.

3. Develop a Vision and StrategyEstablish the target vision and the strategiesfor reaching that vision. The vision must besuccinct – a five minute elevator speech.Visions must be compelling, appealing tocustomers, take advantage of fundamentaltrends such as globalization and new tech-nology, should not exploit anyone or anygroup, and must possess moral power.Strategies are the “how to” reach thevision. Strategies may trigger projects,



programs and management initiatives.

4. Communicate the Change VisionDevelop a communication plan to presentand re-enforce the change vision.Leadership must emulate the new visionin their behaviors. Nothing will communi-cate intent as effectively as incentives - soincentives must support the changevision. Continue to repeat the changevision. The Communication Plan may bethe most important ingredient of success-ful transformation initiatives.

5. Empower Broad-Based ActionIdentify and remove barriers to change.These barriers may include HR policiesthat are outdated, and systems and struc-tures that undermine the change vision,and outdated skills. Some middle man-agers may not embrace the change visionand can inhibit employees from fully partic-ipating. Find out why. Avoid criticism –create a communication environmentwhere contrary opinions can be expressed.Encourage risk taking, nontraditional ideasand innovation. Provide the necessarytraining to build new skills that enable thechange vision. Carefully think throughwhat knowledge, skills, attitudes andbehaviors are needed. Design training toeffectively develop these new attributes.

6. Generate Short Term WinsPlan milestone achievements. Createthese “wins.” Visibly recognize and

reward contributors to these “wins.”Transformation in state government will beachieved through well planned and execut-ed discrete steps. Communicate the pathand the milestones along that path. Thiswill help achieve commitment and demon-strate that the change vision is possible.

7. Consolidate Gains and Produce MoreChange

Build on past successes so that changebecomes permeated throughout theorganization, touching systems, structures,and policies. Continue to evolve humanresources practices to hire, promote anddevelop people who can implement thechange vision. Continue to re-vitalize thechange process through new programthemes, projects and change agents.

8 . Anchor New Approaches in theCulture

This must be done after the previous 7steps have been completed successfully.Stakeholders must see effective results comeout of a change effort which prove the newapproaches are superior to the old ones.Communication and lots of it is critical to suc-cessfully changing culture. Succession plansmust support movement to the new culture.Culture changes only occur after modifyingactions, new behavior produces tangiblebenefit over some period of time, and stake-holders can see the cause-effect relation-ship between the changes and the benefits.

“Guiding changemay be the ultimatetest fo a leader.” -J.P. Kotter

5

Figure 1: Kotter’s Eight Step Transformation Process

5 Adapted from John Kotter’s Eight Stage Process for Creating Major Change, Ibid., page 21 and the foundationa-concept of the entire text.



6 Burke, Wilson, Salas, “The use of team-based strategy for organizational transformation: guidance for movingtoward a high reliability organization”, Theoretical Issues in Ergonomics Science, Vol. 6, No. 6, November 2005,pp. 509-530.

7 Interview of Tom Friedman and Senator Byron Dorgan retrieved on March 12, 2007, fromhttp://www.pbs.org/newshour/bb/business/july-dec06/globalization_09-28.html

8 The Public Forum Institute, Is America's Technology Future at Risk?, March 15, 2006, Washington, DC, retrieved onMarch 12, 2007 from http://www.publicforuminstitute.org/nde/2006/march/register.htm

Kotter begins with the necessity of creatinga crisis without creating panic. The impor-tance of this is presented by Burke, Shawnand Wilson is their study of Highly ReliableOrganizations (HROs).6 In their research,they call this step “unfreezing” and it is char-acterized as a precipatory jolt to the organi-zation. Something must occur to convincethe organization that business as usual is notworking. This can often be the result ofpolitical, social or economic pressures. Instate government, this jolt may be the antic-ipated loss of workers through retirement,or anticipated ongoing effects of the tradedeficit, outsourcing, an unfunded federalmandate, significant loss of revenues, etc.

State government is already facing seriouseconomic pressures. However, as Kotterpresents, the organization may be sufferingfrom complacency due to the fact that it isnot necessarily feeling the pain of this joltyet. Burke, Shawn and Wilson attributenon-reactivity within the organization tothe existence of internal pressures to main-tain the status quo. However, the jolt canalso come from within the organizationand be tied to a mounting performance cri-sis or a need to innovate. We’ll return toBurk, Shawn and Wilson, later in this report.The main take away is there must be some-thing to trigger a transformation effort –and the organization must be convincedthat the jolt is serious and that the organi-zation must change and can change. Sothere must also be this element of hope.

Assess your own reaction to the fol-lowing “jolt” regarding the current

balance of trade in the UnitedStates

An example of a jolt that indicates the des-perate need for transformation of multiple

national policies in the United States is theongoing, growing trade deficit. (See Figure2) There are multiple contributing influ-ences creating this deficit including: 7

� U.S. Trade Policy� Current Corporate Tax Incentives� Global Trade Agreements� Advanced Technology Trade

Imbalance� Lagging Underlying

Telecommunications� Manipulation of exchange rates by

foreign governments

One of the drivers of the trade deficit isthe lagging telecommunications networkcapability in the U.S. This has led to majorspending in R&D to move offshore.

R&D Heading Offshore

� The lack of ultra high-speed networksin the U.S. makes it impossible forU.S. companies to enter key new busi-ness sectors. U.S. venture capitalistsare pressing start-up firms to moveR&D to Asia.

� Declining market shares and rev-enues have caused many U.S. tele-com and technology companies tocut vital R&D spending by 10-40 per-cent.

� Federal R&D spending in these areashas also fallen by over 30 percent.

� Foreign companies make up themajority of the top ten recipients ofU.S. patents.8

This set of facts effectively presents theneed that something must be done inorder to convey the current circumstancesas unacceptable to the economic viabilityof the United States. It presents a sense ofurgency combined with a set of outcomesthat should create deep concern within

Figure 2: U.S. Trade in Goods & Services: 1991-2006Balance of Payments Basis - In U.S. $Billions

SOURCE: U.S. Census Bureau Foreign Trade Division, www.census.gov/foreign-trade/statistics/historical/gands.txt

� does it appeal to your sense of nation-al pride?

� and are you thinking, “we’ve got to dosomething, and fast!”?

If this is your reaction – then this is aneffective jolt – and by the way – an actualone.

(See the related sources for more back-ground on this specific challenge to longterm viability of the U.S. economy.)



government and the citizens of the UnitedStates. It presents that foreign govern-ments are purposely manipulating theexchange rates to keep the U.S. Dollarhigh in order to benefit their owneconomies.

This presentation of the facts takes up littlemore than a page in this report – and yet

� does it get your attention? � does it grip your sense of moral right?� is it compelling – a serious circum-

stance?

Figure 3: US Trade in Advanced Technology: Traditional Large Surplus NowEven Larger Losses



This scenario also emphasizes that transfor-mation must be constantly vigil regardingwhat is going on in the world around us – itrequires dedicated public service motivat-ed, accountable public officials and pro-fessionals who are long term strategistsleveraging short to medium term policy.

The last step in John Kotter’s processdeserves additional treatment. It has beenreported in many sources that the biggestbarrier to change and indeed, organization-al transformation, is the organizational cul-ture. This was demonstrated in the NASCIOreport, PERSPECTIVES – Information Sharing:Calls to Action.9 John Kotter discusses thechallenges and approaches for changingculture in Chapter 10 of Leading Change.According to Kotter, culture change is notwhat should be addressed first. Rather,“Culture Change Comes Last, Not First.”

The rationale is that culture is very hard tochange. Organizational culture has beenestablished over a long period of time. Itis reinforced through incentives, humanresource policy, and management style.As John Kotter points out, people becomeso engrained in the culture that itbecomes part of them. Further, organiza-tional culture is probably what made anorganization highly successful in the past.However, the strengths and capabilitiesthat have made an organization successfulin the past may become irrelevant or eveninhibitors to future success. There is a par-allel occurrence when a project in mid-stream becomes irrelevant and should bestopped so resources can be released andreapplied elsewhere. However, in the caseof culture, it has been producing effectiveresults for some time and under differentcircumstances. That culture becomes irrel-evant or even creates a barrier to effec-tiveness when circumstances change.

The economy changes. Marketschange. Expectations of citizens

change.

That change requires new organizationalmodels that better serve the public andgovernment customers. Successful trans-formation demonstrates the success of newapproaches – that are superior to oldmethods – or more appropriate given anew economic context. The challenge is:culture does not change easily.

IV. Culture Change – RequiresNew Incentives

Changing a culture must begin with poli-cies and incentives that drive behavior.Incentives and human resources policymust align with new approaches thatcomprise a transformation initiative. Oneof the greatest challenges in implement-ing transformation is changing humanresources policy. For example, establish-ing new job titles for new types of jobs canbe so difficult, agency directors give up.The best situation is where the CIOencounters a director of human resourcesthat is also a change leader that is not con-tent with the status quo. Human resourcesshould be an enabler, not a barrier.

In the past, transformation initiativesrequired moving key personalities out ofthe organization. However, because orga-nizational transformation must now beseen as an ongoing cost of doing business,as a normal part of operations, such drasticmeasures cannot be seen as part of a suc-cessful formula for continual change. Mostpeople can change and will change if theybelieve change is in their best interestsand in the interests of the organization.Culture change must occur as an integralpart of organizational transformation.

“No business sur-vives over the longterm if it can’t rein-vent itself.” - J.P.Kotter

9 See http://www.nascio.org/publications/



According to a survey by Accenture, 66%of government respondents are engagedin outsourcing efforts in order to achievetransformation of a department oragency.10 The question is – was that truly amore successful approach than develop-ing existing associates? Outsourcing canbuild mistrust – break continuity of visionand commitment. And so dilute owner-ship to the extent that loyalty to theorganization essentially disappears. Thequestion is, can the CIO and other changeleaders facilitate change in a way thatassociates see transformation as positiveand exciting? Creating an environmentwhere people aren’t threatened by newroles and scopes of responsibility – butview transformation as an opportunity forpersonal development. Reinvention mustbe seen as necessary and even desirable.

V. Leadership and Management –A Balancing Act

Kotter goes on to report that what isneeded in organizational transformationinitiatives is more emphasis on leadership,and less on management – without aban-doning good management. Leaders arevisionaries. Managers are operationallyoriented focusing on planning and budg-ets, organizing and staffing, controllingand problem solving. Leadership on theother hand involves itself in establishingdirection, aligning people, motivating andinspiring. The former produces predictabil-ity and the potential for producing short-term results. The latter produces dramaticchange. Both are required for organiza-tional transformation. But the ratio Kotterpresents is 70 to 90 percent Leadershipand only 10 to 30 percent Management.Kotter’s final point is the need for anorganization to continually learn, andadapt. This is the Learning Organization.This concept has its challenges as well.

Tom Newcombe reports in his editorial

from the January 2007 issue of Public CIOthat government is becoming more andmore outcome oriented. This resonateswell with NASCIO’s goals. This intent hasbeen articulated many times withinNASCIO’s publications and discussions.Even as state CIOs look at potentially inno-vative ways of conducting business – thisquestion continues to loom as the ultimateobjective. The CIO responds to potentialinnovations and transformation with,“…and the citizen is better because…?.” AsCIOs lead transformation initiatives theymust do the same for government employ-ees – they must explain what is precipitat-ing a transformation initiative - how the cit-izen is better served – and how associatesare better enabled - once the transforma-tion has taken place. Maintaining and com-municating this vision of service to citizensis part of the leadership role of state CIOs.

Gingrich and Desmond describe sevencharacteristics of leaders.11

Moral ResponsibilityAn effective leader has to be prepared tobear the moral responsibility of undertak-ing something others may not haveundertaken or may not believe needs tobe undertaken.

A Vision of Success and AchievementGingrich and Desmond quote Solomon –“where there is no vision, the people per-ish” – Proverbs 24:18

EnergyEnergy to motivate. Energy to inspire.Energy to communicate.

Learning AbilityLeaders are constantly learning – Gingrich

10 Newcombe, T., “Embracing Value”, Public CIO, December 2006/January 2007. Retrieved on January 2, 2007, fromhttp://www.public-cio-digital.com/publiccio/200612/?sub_id=DSIDjQjPKyWLZ

11 Gingrich, N., Desmond, N., The Art of Transformation, CHT Press, 2006. ISBN 1-933966-00-9, pp. 208-213

EffectiveChangeLeaders

Management

Leadership



and Desmond quote Albert Einstein – “Thesignificant problems we face cannot besolved at the same level of thinking wewere at when we created them.”

Ability to Listen to and Rely on OthersWe’ve made both of these points already.Leaders can’t be experts in everything.Leaders must be active listeners.

Resilience and PersistenceLeaders don’t give up when theyencounter failure and frustration.

Awareness of Strengths andWeaknessesLeaders know their limitations.

VI. The Trust Organization –Connecting Associates and Partners

It is important to understand what trans-formation requires versus processimprovements which only create moreefficient execution of existing processes.Transformation as defined by CharlesGarfield in his book Second to None: HowOur Smartest Companies Put People First,is as follows:

. . .[Transformation is an] ongoing processthat permeates the entire organization,and represents a sharp break with thepast. This break is a major differencebetween transformation and simplereform. While reform is an attempt to godown the same path more efficiently,transformation involves the developmentor discovery of entirely new paths.12

This definition supports the idea of trans-formation and in most contexts the workof transformation as it is tied toinnovation.

Dr. Steve Else embraces this definition oftransformation as a foundational conceptin his PhD dissertation on organizationaltheory. Dr. Else presents his observationsand conclusions from a study of the U.S.Department of Defense Transformationinitiative led by Donald Rumsfeld. A majorconclusion in this study is that there aremajor blind spots in leaders or organiza-tions due to a lack of understanding ofthis new management discipline –Organizational Transformation. Individualsand organizations have limits on theirunderstanding of the dynamics of trans-formation. And, transformation as a man-agement science is immature.Nevertheless, organizational transforma-tion is anticipated to be key to innovationmanagement and is a necessary disciplinethat must be learned and learned well inthe 21st century. Further, organizationaltransformation must be managed within aproper governance model that includesthe traditions, institutions and processesthat determine how power is used, howassociates are included in the decisionmaking process, and how decisions aremade at an enterprise level. Without firstestablishing appropriate governance, itwill be difficult to initiate and sustainongoing organizational renewal.13

Dr. Else describes the need for establishingtrust within the organization as it goesthrough the transformation process – andthe ongoing iterative transformations nec-essary to remain productive in an ever-changing environment. Trust mustinclude openness and inclusion and is anecessary ingredient to cultivate an inno-vative culture.

This idea of openness and inclusion is astrong point made by Anne Firth Murraywho is credited with being an innovatorand pioneer. Murray established TheGlobal Fund for Women which fundschange and transformation initiatives

12 Charles Garfield, Second to None: How Our Smartest Companies Put People First(McGraw-Hill, New York, NY, 1991), 50. Referenced in Dr. Else’s dissertation.

13 Dr. Steve Else's doctoral dissertation: Organization Theory and the Transformation of Large, ComplexOrganizations -- Donald H. Rumsfeld and the U.S. Department of Defense, 2001-04 retrieved on January 10,2007, from http://www.public-private.org/



globally. The model used by Murray is toenable women locally to solve their ownproblems by providing resources neces-sary to accomplish change.14 Murrayemphasizes connecting with others as nec-essary in building trust within her ownorganization as well as with potential part-ners and stakeholders.

Burke, Wilson and Salas present that organi-zations that are successful in achievingchange and transformation must employthe participation of the organization staff.First, employees want to understand whychange is happening or needs to happen.Second, employees are a well spring of ideasand solutions. Third, employees want tohave control over their work (an inherentcharacteristic of human beings) and morecontrol leads to embracing change ratherthan resisting it. If people know and feelthey are part of the change process they willcreate the necessary momentum to make ithappen. Connecting with employees orassociates in the organization, bringing them into the process, ensures success.15

This fact is emphasized in this NASCIOreport by avoiding the term employees –rather emphasizing the term associates.

The lessons are there for us to apply with-in state government. If it is hard to initiateand sustain transformation within stategovernment – how much more importantmust it be?

VII. Transformation – EstablishingScope

It is obvious from the literature that - trust,communication, the need for a “jolt” - arenecessary ingredients for a successfultransformation initiative. There are areaswhere there is less than consensus aboutwhat must be in place to enable a success-ful transformation. One issue is scope of

effort. Ralph Killman presents the follow-ing list of seven useful, searching ques-tions to help scope a transformation initia-tive.16

1. How much top management commit-

ment and involvement are necessary

in any transformational effort?

2. Is charismatic leadership required for

successful transformation?

3. Where should transformation start?

Does it matter?

4. Must transformation involve changes

in all aspects of the organization?

5. Can organizational transformation

take place without personal transfor-

mation?

6. How can top managers and others be

encouraged to anticipate change

instead of reacting to crisis situations?

7. What is the role of the human

resources function in transformation?

Vincent Barabba, formerly an executive atGM and there during its 1992-2002successful transformational journey, statesthat successful transformations take timeand very much depend on the context ofthe particular transformational initiative.He suggests that there are general lessonslearned from GM’s transformationthat warrant consideration by any largeorganization undertaking anything similar:

1. Minimize or avoid the “zone of disorder”felt by employees when the enterpriseis required to change from where it isnow to where it needs, or wants, to be.

14 Murray, A.F., Paradigm Found: Leading and Managing for Positive Change, ISBN-10: 1-57731-533-2, ISBN-13:978-1-57731-533-9, Chapter 3 (Publishers Group West, 2006)


16 Ralph H. Kilmann and others. Corporate Transformation: Revitalizing Organizations for a Competitive World (SanFrancisco: Jossey-Bass Publishers, 1988), xiii.



2. Think about the potential of anextended enterprise system to expandthe vision of the current business,starting with determining the destina-tion.

3. Plan how to get the enterprise to thetargeted destination.

4. Develop an effective dialogue withselected customers using the mosteffective technology.

5. Stare a complex and uncertain futuredirectly in the eye and develop a busi-ness design that increases the chancesof favorable future conditions.

6. Create and nurture a strong and effec-tive relationship between and amonginformation providers (marketresearchers) and information users(decision makers).

7. If possible, identify the “right problem”to work on rather than finding outlater that the effort solved the wrongproblem.

8. Develop teams that sort out the con-flicting issues underlying the multipleperspectives of functional organiza-tions.

9. Create awareness of the interaction ofthe parts of the system in order toanticipate whether the outcomes ofdecisions will be different from initialexpectations.

10. Understand the encompassing envi-ronment in which the enterprise oper-ates and determine how to interactwithin that system.

11. Reveal the implicit assumptions of theplans and how to go about assessingtheir likelihood of actually occurring.

12. Ensure that the knowledge of what isknown (or known to be unknown) bythe enterprise is made available to allwho need access to it.

13. Determine the enterprise destinationin the face of an uncertain future andidentify ways to think about gettingthe enterprise to that destination.17

The recommendations from these experi-enced change managers should providethe governance elements within whichthe change process should be planned.These elements provide the considera-tions to be evaluated as part of charteringa change management / organizationaltransformation initiative.

VIII. High ReliabilityOrganizations – Useful Lessons

Organizations including state governmenthave become more and more complex.Government must do its best to anticipatechange, assess risk, and establish plans forimplementing change – while also main-taining the ability to change course quick-ly when and if the environment changesyet again. Change must be seen as a con-tinual, never-ending behavior. As NASCIOhas stated in past publications – the enter-prise must be viewed as a fluid movingthrough time. These are characteristics ofthe agile enterprise. How can an organiza-tion achieve this agility?

Some organizations are employing theteam approach of High ReliabilityOrganizations (HROs) in order to deal withunpredictable environments.18 Theemphasis is on resilience – the ability torespond to new dynamics, to continuallylearn, to employ expertise wherever it isfound. HROs accept mistakes as part ofthe innovative process. They are continual-ly developing their personnel through

17 Vincent P. Barabba, Preface, Surviving Transformation: Lessons Learned from GM’s Surprising Turnaround. pub-lished in New York by Oxford University Press, Summer 2004.


12


Transforming Government Through Change Management

constant skill development. The founda-tional principles of HROs are credited forthe differentiation seen in HRO perform-ance in complex environments. Whilesome organizations cannot cope withuncertainty, complexity, and continue toattempt strategies fraught with error,HROs maintain an expertise in minimizingerror by “making sense” out of complexity.

The objective here is to try to gain someinsight from these highly successfulorganizations that can be gleaned toenable transformation initiatives in stategovernment. So, what is an HRO? Themost widely used example of an HRO isthe US Naval aircraft carrier fleet.Operating conditions are extremely com-plex and unpredictable. Flight operationsmust be conducted under conditions thatcan change in a moment. There is a highrate of turnover in personnel, yet morale,productivity and team cohesion must bemaintained. Some CIOs are not necessari-ly facing such conditions . . . yet. However,other CIOs are facing unbelievable com-plexities and pressures to perform. Again,it is presented that there are lessons to belearned from organizations, like the USNavy, that are characterized as HROs.Going forward, the business of govern-ment will become more and more com-plex, more unpredictable, and require acapstone characteristic of HROs -resilience. That is, the ability to respondeffectively to changing conditionsthrough continual transformation.

Some characteristics of an HRO are worthlisting and considering as potential char-acteristics for state government. There areeight primary characteristics of HROs: (1)hypercomplexity (i.e. there is a wide vari-ety of components, systems and levels), (2)tightly coupled (i.e. there is reciprocalinter-dependence across the units andlevels), (3) extreme hierarchical differentia-tion (i.e. each level has its own mecha-nisms for control and regulation), (4) manydecision-makers working in complex com-munication networks (i.e. systems areredundant), (5) high degree of accounta-bility (i.e. less than optimal performanceresults in severe adverse consequences),

(6) frequent, immediate feedback regard-ing decisions (i.e. many decisions are timecritical affecting operations immediatelyresulting in continuous feedback), (7) com-pressed time factors (i.e. many operationsor activities can be measured in seconds)and (8) outcomes that are synchronized(i.e. for success, more than one outcomemust occur simultaneously).The challenge presented by Burke, Wilsonand Salas is HOW TO move an organiza-tion toward the HRO model. Our interestis to examine the attitudes that pervadeHROs and the process for creating anorganization that maintains ongoing trans-formation.

There are five attitudes that prevail in anHRO. We’ll examine each one briefly andoffer suggestions for CIO action.

Sensitivity to operations – this is arecognition that operations have inherenterror - which are latent - and which willnot appear until the organization faces theright combination of adverse events. Sothe organization is on the constant look outfor these errors. It never assumes businessprocesses are going to work correctly everytime. There is a constant vigilance – lookingfor that failure point. This vigilance is mosteffectively carried by the operations person-nel. The necessary communication, relation-ships, and attitudes exist in the organizationso that observations and experience at theoperations level effectively moves to deci-sion makers so corrections can be madequickly. Operations staff and strategistswork in a collaborative way to evaluatealternatives and make corrections. This isviewed as a normal activity – the normalway of operating. Some of this behavior iscomparable to behaviors promoted by theBalanced Scorecard approach to manage-ment where scorecards are presented in anon-threatening environment and peersassist peers with interpreting results anddeveloping solutions.

CIO Action: ensure collaborative rela-tionships and ongoing communicationbetween architects and operations;strategy and operations; visionariesand implementers.



Reluctance to simplify. HROs recognizecomplexity and embrace it. Too muchsimplification can limit creativity and inno-vation. HROs keep a very open perceptionto problem solving and opportunity iden-tification. HROs achieve this partially byadmitting people with diverse back-grounds into the team environment. Thisensures multiple perspectives and providesa wide portfolio of “brain power” that canbe engaged for innovation. HROs willselect people with non-typical experience,employ job rotation, and retraining in orderto achieve this diverse thinking and avoidorganizational stagnancy.

CIO Action: create diversity on the CIOteam; hire associates with non-IT back-grounds that can bring other perspec-tives to the team; employ job rotationto keep staff continually exposed tonew situations while bringing diversityinto other areas of the organization;maintain an environment of ongoingtraining; consider cooperative relation-ships with other state cabinets androtate staff to achieve cross –pollina-tion in thinking, attitudes, problemsolving, and process improvement.

Preoccupation with failure – this is astrange term – but it refers to constantly

evaluating errors – no matter how minorin order to fully harvest learnings. HROsconstantly combat the “liability of success”which is organizational complacency.

Some things can’t be taught – theymust be caught.

This refers to the fact that every possiblescenario cannot be anticipated. Somethings must be observed, or caught, whenthey occur so the learning value can beharvested. HROs maintain this ongoinglearning attitude that is ready to “catch”opportunities to learn – in real time.

CIO Action: Change managers or per-formance managers should be taskedwith carefully evaluating movementtoward and out of control limits – dis-covering root cause for such move-ment; create an online solution knowl-edgebase that is available to theorganization; institute review meetingssimilar to Balanced Scorecard reviews;identification of failures should not bepunitive; maintain a learning environ-ment.

Commitment to resilience. HROs recog-nize the absolute existence of the “unex-pected.” In parallel with continuallyhoning the predictive skills of proactive

Figure 4

14



Sufficient for now, the CIO must communi-cate that change and continual transfor-mation is now the norm. The extent andvelocity of change will continuallyincrease. And there are lessons to belearned from other organizations such asHigh Reliability Organizations that havealready pushed many of the frontiers inmanaging change. There are characteris-tics to be emulated - mimicked - in orderto be effective in managing change andorganizational transformation in stategovernment.

IX. Transformation is Ongoing –Relevant Metrics

It is important to see transformation as anongoing process rather than a one timeinitiative. Therefore, metrics created tohelp stimulate an organization towardchange and to measure progress towardthat objective must be continuallyreviewed for relevancy. It may be that thechange or desired behavior that prompt-ed the original metric has been achieved.Subsequently, new objectives must beestablished with appropriately definednew metrics. An example of this is provid-ed by the Occupational Safety and HealthAdministration (OSHA). In 1993 JosephDear was named assistant secretary oflabor and also the head of OSHA. What heencountered as “measures of success”were metrics related to the number ofinspections made and fines assessed.Though these metrics may have hadmeaning at one time the contextual con-ditions that prompted those metrics hadlong since changed. Under Joseph Dear’sleadership, the organization revisited itsintent with a view toward ultimate out-comes. And, these metrics were not con-tributing to that intent.19 This scenarioalso presents that change must be a con-tinual renewal. Frank Ostroff describes theneed for the organizations to establishperformance metrics that support the

management, HROs recognize errors willstill occur. The organization must main-tain the ability to react to problems, miti-gate the effects of errors, and recover backto baseline. This is termed resiliency. Theability to take a “hit” and recover. Thischaracteristic then feeds into the continu-al learning associated with “preoccupationwith failure.” Again, when errors happen,the organization is interested in learning,not punishing; employing operating disci-pline, not panicking.

CIO Action: create an environment thatanticipates mistakes, problems, andunforeseen events; as much as possible,anticipate and have in place operatingdiscipline for dealing with predictableevents; but add to this operating disci-pline for action when the unexpectedhappens; this discipline may includeleveling of events on a severity scaleand employing collaborative activitiesthat involve specific roles depending onthe level of severity.

Deference to expertise – in a nutshellthis is essentially engaging the rightexpertise wherever it may reside. Thisrequires a team oriented attitude acrossthe organization. “That’s not my job” does-n’t exist in an HRO. Rather, everyone iswilling to get involved when it is appropri-ate. The organization is willing to engageexpertise in and out of the organization.This is an attribute of leadership. Leadersaren’t expected to know everything abouteverything. Rather, they know who to calland how to tap the right expertise.

CIO Action: maintain a directory ofexpertise centers; establish relation-ships with expertise centers in advanceso they can be engaged when needed.

There are many more learnings to begleaned from the report by Burke, Wilsonand Salas which we hope to explore infuture publications.

19 Ostroff, F., Change Management in Government, Harvard Business Review, Vol. 84, Iss. 5, ISSN 0017-8012, May 1,2006



organization’s mission. NASCIO continual-ly presents the need to evaluate actions,projects, programs and management ini-tiatives based on ultimate outcomes. Arecitizens better off? Are streets safer? Is theremore economic opportunity for our citizens?Is our educational system providing what weneed now? In the case of OSHA, the ulti-mate outcome sought is “protecting work-er health.” Metrics and incentives withinOSHA must contribute toward that aim.

The Occupational Safety and Health Actwas enacted by Congress to, “. . . assure sofar as possible . . . safe and healthful work-ing conditions . . .”20 The intent of OSHA ispresented in the preamble to the act andin the “general duty clause.” The challengeJoseph Dear presented to his organizationwas to determine what incentives andmetrics must be in place to accomplishthat mission within the current contextualenvironment. Metrics and performancemeasures must continually be evaluatedagainst current conditions. When Deararrived at OSHA, established metrics wereout of sync with the current strategicintent of the organization. Frank Ostroffhas described this scenario as being “cap-tured by metrics.” Ostroff goes on todescribe four more principles for manag-ing change in government. The followinglist of recommendations is adapted fromFrank Ostroff’s article in the HarvardBusiness Review.

Win Over StakeholdersStakeholders fall into two general cate-gories: external and internal. Understandtheir issues and perspectives. Becauseagency staffers have typically a fairly longtenure, fully leverage their experience andhistory with the organization. Revisit theorganization’s mission and demonstratethat the intent of the change effort is tomore effectively deliver on that mission.

Create a RoadmapDon’t treat transformation as a black box.

Rather design the box. Establish perform-ance objectives. Involve a wide cross sec-tion of associates. Establish a changeteam with membership from people whoare respected by their peers. Prioritizeareas of performance improvement.Identify barriers. Conduct fact finding /root cause analysis. Review past changeefforts to learn what worked and whatdidn’t – and why. Establish recommenda-tions for change. Evaluate existingprocesses. Establish priorities (use animpact / difficulty 2 X 2 matrix). Roll outthe change program in an area that ismost receptive to the change initiative.Establish a steering committee whosemembers come from government leaders,senior managers that are directly impact-ed by proposed changes.

Take a Comprehensive ApproachLeaders don’t limit their solution set totools, techniques and approaches withwhich they are familiar. Organizationalsuccess requires proper leverage of lead-ership, structure, processes, infrastructure,people and performance management.

Be a Leader, Not a BureaucratFind ways to see over and around barriers.You may have more flexibility than youthink. Follow the rules – but don’t limityourself by what has been done in thepast.

Metrics must be seen as a necessary toolto assist in the implementation of change.Gingrich and Desmond make the case formetrics as an essential element for transfor-mation in their chapter on The EmergingRevolution in Metrics-Driven Leadership.21

Metrics will provide the control chart toensure the outcomes sought are achieved,and will also help to defend or justify thechange management initiative.

20 Public Law 91-596, 84 Stat. 1590, 91st Congress, S.2193, The Occupational Safety and Health Act of 1970,General Duty Clause, retrieved on January 17, 2007, fromhttp://www.osha.gov/pls/oshaweb/owasrch.search_form?p_doc_type=OSHACT&p_toc_level=0

21 Gingrich, N., Desmond, N., The Art of Transformation, CHT Press, 2006. ISBN 1-933966-00-9

Find ways to seeover and aroundbarriers. You mayhave more flexibilitythan you think.

16



X. Enterprise Architecture – thepath to transformation

The General Accounting Office, GAO, con-ducted a survey of 27 major federal depart-ments and agencies regarding transforma-tion efforts and reported the results.22

GAO makes the point in this report thatenterprise architecture is the necessary dis-cipline to employ in transforming organiza-tions. The effectiveness of this approach isdependent on how well the organizationhas embraced their enterprise architecture,and the capability of the organization tocomply with that architecture.

NASCIO has presented this same perspec-tive regarding transformation and thenecessary employment of enterprisearchitecture. Enterprise architecture takesa broad view of the organization whichencompasses every facet of strategy,research, operations, technology, humanresources, and relationship management.Enterprise architecture is a comprehensiveview of the enterprise. This view is essen-tial especially during transformation andchange leadership.

The NASCIO Enterprise Architecture Value

Chain was created in order to communi-cate the concepts of environmental analy-sis, supply / demand economics, strategicplanning, capability management, and pro-gram/project management and the relation-ships among these disciplines. This ongoingiterative process begins with continual mon-itoring of the environment in which stategovernment resides – fiscal circumstances,policy, global economic and political shifts,changing citizen expectations and needs. Itis within this context that state governmentexamines markets and needs and deter-mines how to respond. That response isarticulated in the way of strategic intent.That intent is enabled through leveragingexisting capabilities or creating new capabil-ities. Capabilities can be engagedthrough internal development, contract-ing with an outside provider, or throughcollaborative networks involving federal,state and local government. Capabilitiesare delivered through programs, projectsand management initiatives.

The relationships between the Value Chainand Kotter’s 8 Processes are depicted herein order to show the ongoing linkagebetween the Value Chain and the transfor-mation process that is engaged in a

Employ enterprisearchitecture as thepath to organization-al transformationand for managingcontinual renewal.

22 ENTERPRISE ARCHITECTURE Leadership Remains Key to Establishing and Leveraging Architectures forOrganizational Transformation, Government Accountability Office, Report GAO-06-831, August 2006, retrievedon January 19, 2007, from http://www.gao.gov/cgi-bin/getrpt?GAO-06-831

Figure 5: Enterprise Architecture Value Chain



Learning Organization.

These types of initiatives must examinethe current state, establish the futurestate, and carefully design the deliveryprocess to move to that future state. Thisrequires recognition of the interconnectiv-ity of organization, business processes,and operations. It also requires considera-tion of secondary and tertiary effects ofchange. Making a change in a process willaffect every other process that interactswith it including the informationexchanges, personnel duties, proceduralsteps, etc. How much more the effects oforganization transformation?

In order to avoid collisions, and ensure “allthe parts fit together” when complete, acomprehensive plan must be establishedand followed. This point is made by BruceHallowell in an article published inHealthcare Financial Management.Hallowell states that many failed efforts toeffect transformation can attribute that

failure to not fully understanding or takingaccount of the “domino effect” change inone area will have on other areas withinthe organization.23 This is part of the valueof leveraging enterprise architecture inimplementing transformation efforts. Theenterprise architecture should documentthe inter-connectivity within an enterpriseand include consideration of inter-enter-prise architectures – i.e., how one enterpriseis connected with other enterprises.

The GAO report summarizes the intent ofthe federal reference models for enter-prise architecture.

…These models are intended tofacilitate government wide improve-ment through cross-agency analysisand the identification of duplicativeinvestments, gaps, and opportunitiesfor collaboration, interoperability,and integration within and acrossgovernment agencies.

23 tips on transforming an organization. By: Hallowell, Bruce. Healthcare Financial Management, Jun2003, Vol. 57Issue 6, p64, 2p; (AN 9973672)

Figure 6

18



Enterprise architecture is not established forits own existence. It has a purpose in theoverall management of an enterprise. Theintent of the Federal Reference Models is tofacilitate movement toward an intended out-come as articulated in the above statement.

Change leaders have at their disposal thisdiscipline for defining, organizing and exe-cuting on organizational transformation.

The table above is presented in the GAOreport.

Each reference model addresses a differ-ent aspect of enterprise architecture.These reference models provide views ofthe enterprise that must be coordinated inorder to achieve transformation. Intentand functionality is established in theBusiness Reference Model. ThePerformance Reference Model provides theongoing feedback on how well the enter-prise is delivering on that intent. The Dataand Information Reference Model describethe information that must be generatedand shared in order to deliver the intentdescribed in the Business Reference Model,and to enable measurement of perform-

ance as articulated in the PerformanceReference Model. The Service ComponentReference Model describes the servicesthat can be leveraged in order to meetintent within the parameters of perform-ance targets. The Technical ReferenceModel then describes the technical capabil-ities necessary for enabling intent.

Enterprise architectures are a recognizedtenet of organizational transformation andIT management in public and privateorganizations.

Without an enterprise architecture, it isunlikely that an organization will be able totransform business processes and modernizesupporting systems to minimize overlap andmaximize interoperability.-GAO August 200624

An enterprise architecture is a blueprint fororganizational change defined in modelsthat describe (in both business and technologyterms) how the entity operates today and how itintends to operate in the future; it also includesa plan for transitioning to this future state.

-GAO August 2006 24

Figure 7: Federal Enterprise Architecture Reference Models

SOURCE: GAO

24 ENTERPRISE ARCHITECTURE Leadership Remains Key to Establishing and Leveraging Architectures forOrganizational Transformation, Government Accountability Office, Report GAO-06-831, August 2006, retrievedon January 19, 2007, from http://www.gao.gov/cgi-bin/getrpt?GAO-06-831

Without an enterprisearchitecture, it isunlikely that anorganization will beable to transformbusiness processesand modernize sup-porting systems tominimize overlapand maximize inter-operability



Enterprise architecture must always bepresented as an ongoing iterative process.It is never complete, and the organizationis never done developing it. Even as theorganization must see itself as a fluid –modifying itself continually – the enter-prise architecture that describes it mustalso be fluid.

This GAO report was preceded by a July2003 report titled RESULTS-ORIENTED CUL-TURES: Implementation Steps to AssistMergers and OrganizationalTransformations.25 This report echoedmuch of what John Kotter has stated. Theresults of that study are presented in thefollowing table ().

Suter has described enterprise architec-ture as the “blueprint” for organizationaltransformation.26 Suter presents the fol-lowing:

The Case for Enterprise Architecture Enterprise architecture enables the transfor-mation of organizations into efficient usersof capital, be it human/intellectual, organi-zational, or technical.

It does so by identifying capability andresource requirements of the agency missionbefore resources are committed to develop-ment, thereby minimizing the risk of costlyrework and schedule overruns; identifyingreuse; and streamlining opportunitiesfor technologies, processes, procedures, andinformation assets.

During subsequent development, architec-ture also enables the management of out-of-scope changes which, however meritori-ous, would derail subsequent modernizationefforts.

For some years, NASCIO has emphasizedthe importance of enterprise architectureas a necessary management engineering

discipline for business and technology lead-ers to employ in managing state govern-ment. Enterprise architecture must beunderstood as that discipline entailing aholistic view of the enterprise. If enter-prise architecture is seen only as a techni-cal discipline it will not provide the neces-sary scope for managing ongoing organi-zational transformation as described inthis report. Its relevance to the CIO hasbeen presented within the scope of trans-formation.

XI. The soft side of transformationand change leadership - people

All that has been presented here regard-ing transformation and leading changehas as its most significant linchpin – peo-ple. Nothing gets done without people.And in the end, it is people that are servedby state government. All the theories,modeling techniques, analysis, and tech-nology will mean nothing if adequateattention is not given to the real authorsand benefactors of change – people.

Leadership in organizations must be lead-ers. This does not mean they must beexperts in every facet of the organization.Leaders know how to employ the talent oftheir associates and staff in carrying outthe necessary initiatives to effect change.So, how can a transformation initiative, orchange management initiative, engage itspeople resources effectively?

It begins with trust. Mutual trust must beestablished. Trust must be earned. Inorder to establish a trust organization,management must first be trustworthy.Management must create an organizationthat embraces open communication. Thisopenness means that critics and support-ers have equal voice in any transformationor change initiative.

25 RESULTS-ORIENTED CULTURES: Implementation Steps to Assist Mergers and Organizational Transformation,Government Accountability Office, Report GAO-03-669, July 2003. Retrieved on January 19, 2007 fromwww.gao.gov/cgi-bin/getrpt?GAO-03-669

26 Securing Strategic Benefit from Enterprise Architectures. By: Suter, R.. Defense & AT-L, Jan/Feb2007, Vol. 36 Issue1, p20-38, 3p



The following quote comes from theChange Management Learning Center.

Consider that when a group undergoesa change, it is not the organization thatchanges, but rather the behaviors ofindividuals. This change in collectivebehavior is what produces differentoutcomes for the organization. Forexample, when a company reorganizes,it is not the restructuring that repre-sents the change, but rather the shift inaccountabilities and responsibilities foreach person. New behavior results, anddifferent business outcomes areachieved. In other words, organizationsdon’t change, people within organiza-tions change.

With this basic principle of organiza-tional change, a simple connection canbe made between change projects andbusiness results. The link between anystrategy, process or system change andthe associated business results is thecollection of individual changes thatoccur one person at a time.

Understanding how to achieve changeat an individual level, therefore, isessential to achieving the objectives ofany large-scale change. This is calledindividual change management.Organizational change managementand individual change managementmust be used together to managechange successfully. 27

This description emphasizes the fact thateffective change management is foundedupon positive relationships with each indi-vidual that makes up the team, thedepartment, and the enterprise. TheChange Management Learning Centerdescribes the process for implementationchange using what is referred to as theADKAR model. An adaptation of this

model is presented here. Change mustbegin with individuals which impactchange in the larger organization. At alllevels, the process is similar.

At the Association of GovernmentAccountants’ 13th Annual LeadershipConference, Washington, D.C., January 25,2002, Comptroller General David Walkerpresented the GAO’s views on“Transformation in Government.” His pres-entation covered the basics of “what, why,who, how and when” regarding transforma-tion in the federal government. He statedthat transformation is basically an act,process, or instance of change in structure,appearance, or character; a conversion, revo-lution, makeover, alteration, or renovation.He described the case for transformationalchange in the federal government in termsof the government being on a “burningplatform,” and he noted that “the status quoway of doing business is unacceptable.”28

Walker cited rising public expectations fordemonstrable results and enhancedresponsiveness as one of two sources fortransformation imperatives. The secondsource was government performance/accountability and high-risk challenges,including the lack of effective human capi-tal strategies. Walker introduced the President’s Management Agenda (PMA) inlight of the need for transformation, citingthe five government-wide initiatives itmandated:

27 Prosci ADKAR model retrieved on January 19, 2007, from http://www.change-management.com/tutorial-essence-of-adkar.htm

28 Walker, David M., “Transformation in Government,” Presentation to Association of Government Accountants13th Annual Leadership Conference (Washington, D.C., January 25, 2002), accessed 6 July 2004; available athttp://www.gao.gov/cghome.htm.

Prosci ADKAR Model

A - Awareness of theneed for change D - Desire to supportand participate in thechange K - Knowledge ofhow to change A - Ability to imple-ment the change R - Reinforcement tosustain the change

Figure 8: ADKAR Model

22



1. strategic management of human

capital

2. competitive sourcing (public-private

competition for federal jobs)

3. improved financial management

4. expanded e-Government

5. budget and performance integration.

Of the three components of holistic busi-ness transformation—people, processand technology—captured in the PMA,Walker stated an agency’s human capitalprogram is the most important enabler foreffective performance management.

The first step in effecting change is tobuild awareness among associates thatchange is necessary. Individual associatesmust embrace a desire to support and par-ticipate in the change initiative. Thatdesire must in turn be supported by theknowledge of how to change. That knowl-edge is enabled by the ability to imple-ment change. Finally, change must be rein-forced in order to sustain the change, andcontinue to cultivate an attitude towardcontinual change.

This process will require effective and fre-quent communication. That communica-tion must “listen” as well as “tell.”

XII. The Learning OrganizationalEnvironment

Brian Fry and Samuel Griswold of SouthCarolina recommend pursuing a LearningOrganization approach to change man-agement.29 Information technologyadvances have enabled organizations tomake rapid and continual change.Challenges in knowledge management andculture are cited as the greatest barriers toeffective change. The prescription put forthto manage effectively in an environmentthat is continually changing is to abandon

the pursuit of stability and predictability andreplace those organization characteristicswith experimentation and innovation. (Isn’tthis reminiscent of what we learned regard-ing HROs?) The Learning Organization con-tinually challenges how things are done.Such an organization is continually tryingto tap the creativity of its staff.

The Learning Organization abandons strictcommand and control approaches. It alsois careful regarding embracing the latest“management theory.” Many manage-ment theories that even gain high adop-tion become obsolete in an ever shorten-ing lifecycle. Fry and Griswold quoted pre-vious research that indicated the typicallifespan of a new management idea hasrecently moved from 10 years to 1 year.We’re not sure that is truly accurate, butthe observation highlights the idea thatthings are ever moving faster. Necessarycontinual change has become the norm.

Implementing this characteristic ofOrganization Learning within a govern-ment enterprise is going to be a signifi-cant challenge as was related in the casestudy described in their report. ALearning Organization is defined as,

“... an organization skilled in creating,acquiring, and transferring knowledge,and modifying its behavior to reflect newknowledge and insights.”30

The authors described three strategiesoriginating from Bob Willard’s article, 3Strategies for Learning Organizations.

29 Fry, Brian R.; Griswold, J. Samuel., Defining and Implementing the Learning Organization: Some StrategicLimitations, Public Administration Quarterly, Fall 2003, Vol. 27 Issue 3, p311-335, 25p

30 Garvin, David A. (1993). "Building a Leaming Organization." Harvard Business Review 71 (July-August):78-91.

…an agency’shuman capitalprogram is the mostimportant enabler foreffective perform-ance management…



These are: the declared/marquee, the sub-versive/backstage, and the coincidental/acci-dental strategies. The declared/marqueestrategy is employed when the organizationdeclares its intentions and publicly attemptsto introduce the approach in its opera-tions. The subversive/backstage strategy isemployed when the organization is aware oflearning organization ideas and consciouslychooses to use them as background tech-niques. However, there is no public pro-nouncement regarding its intentions. Thecoincidental/accidental strategy can be iden-tified when it is observed that an organiza-tion is doing the right things to implementthe learning organization but is not explicitlyaware that it is implementing a learningorganization. The organization is simply try-ing to “get work done” and is intuitivelyemploying good management practices.

The case study presented by Fry andGriswold presents the following takeaways. We’ve offered potential learningsfrom these recommendations. Theselearnings or Potential Adjustments tochange management or transformationefforts are offered as reactions to the con-clusions of Fry and Griswold.

Lesson 1: Change will take longer thanone thinks.

Potential Adjustment: Manage change indiscrete steps with intermediate deliver-ables. Establish communication plans.Test the effectiveness of communicationplans. Think Enterprise, but implement atthe team level.Challenges:� short average tenure of state CIOs

� don’t over communicate – may turn intoanother big bang that never happens

� understand what barriers or rationaleis causing the behaviors that resistchange

� moving or convincing some recalcitrantworkers may simply not be possible

Lesson 2: Technology (and Training)have limitations as a catalyst for change.

Potential Adjustment: As the authors stat-ed, attitudes and behaviors are not modi-fied through technology. Learning mustfirst occur at the level of the individual.

Coaching individuals as part of theircareer planning process may be an alter-native or a supportive activity to accom-pany any change management or trans-formation initiative.

Communication must be two-way. Listento associates to understand the basis forbehaviors and attitudes.

Revisit line of sight traceability from ulti-mate outcomes back to change / transfor-mation initiatives to present the rationalefor such initiatives.

Add incentives such as individual perform-ance dimensions that will support the ini-tiative. Work with staff and humanresources to identify effective incentives.

Lesson 3: Grand strategies versus smallsteps.

Potential Adjustment: The authorsdescribed three strategies for creating aLearning Organization. Possibly the bestapproach is not to make a large campaign.Rather employ good management prac-tices without stating explicitly that “we’renow going to create a LearningOrganization.”

A similar approach has been followed byenterprise architects. When Tony Scottwas the chief enterprise architect forGeneral Motors, he was careful to neveruse the term “enterprise architecture” withbusiness people. He simply followedenterprise architecture discipline. The

24



business client didn’t necessarily need toknow that what they were doing was“enterprise architecture” operating disci-pline.31

As the authors recommend – makechanges in small steps – i.e., Kaizen – con-tinuous and incremental.32

The point has been made a number oftimes in this report that change must becontinual. This concept is embraced inwhat has been termed a change compe-tent organization. 33 One of the mostimportant aspects of achieving successfulongoing transformation is striving to havea change competent organization. Changecompetency means that the people in theorganization are so used to adapting tochange that it becomes a routine part oftheir job. This requires definitive processes,resources, tools in place within the organi-zation that are used on an everyday basisto effect change. At the state of Delaware’sDepartment of Technology andInformation (DTI), there is an establishedchange management team that workswith the project managers on all projects.DTI employs a defined methodology. Itssuccess can be attributed to competentchange leaders and top leadership sup-port that requires consistent applicationacross the entire organization.

As described by Pam Waters, ChangeManagement Team Leader with DTI, thisongoing process can be quite painful attimes – but it gets better – slowly butsurely. The role of technologists is signifi-cantly enhanced within an organizationthat is becoming competent in changemanagement. Some roles that have previ-ously dealt primarily, or even exclusively,with technology must now include addi-tional skills – working with people. In thepast there has always been a ‘build it and

they will come’ attitude – but the successof that approach is questionable. Businessintent must drive technology solutions notthe other way around. Some associateswho have a long history in technology canget frustrated because they are nowrequired to follow established processesfor preparing people for the new solutioninstead of just throwing it over the walland saying “here you go – use it.”Gradually, associates are seeing the valueof an organized change management dis-cipline and its contributions to the successof project implementations.34

Delaware presents a success story fororganizational transformation. The initia-tive was led by CIO, Tom Jarrett. In arecent interview, Jarrett highlighted someof the keys to success. He leveraged legis-lation that was passed just prior to hisarrival which created his position as CIOand Secretary of Information andTechnology. This legislation gave him theauthority to transform the state depart-ment of technology and information.Jarrett maintains the significance of rela-tionship management as a key skill forstate CIOs. The transformation initiativewas started and maintained through apartnership between his office, the gover-nor, and the state legislature. Jarrettexpanded the role and scope of the orga-nizational transformation team from beingrestricted to ERP solution planning andimplementation to include all technologyprojects. Every project must now includetransformation considerations as a part ofthe delivery process – focusing on howthe organization will be engaged in theplanning of an IT initiative all the waythrough delivery and maintenance activi-ties. Jarrett highlights the fact that hehired staff with business acumen to assisthim in establishing a business centricapproach to managing the information

31 Architecture - GM's Cure for Complexity, by Richard Pastore, Sep. 1, 2004 Issue of CIO Magazine, retrieved onJanuary 22, 2007, from http://www.cio.com/archive/090104/gm.html

32 See definition of kaizen, http://www.google.com/search?hl=en&lr=&defl=en&q=define:Kaizen&sa=X&oi=glos-sary_definition&ct=title

33 “Building Change Competency”, The Change Management Learning Center. Retrieved on March 22, 2007 fromhttp://www.change-management.com/tutorial-change-competency-mod5.htm

34 Contributory writing from Pam Waters, State of Delaware, Department of Technology and Information. Pam’scontact information is presented with the list of contributors to this report.



technology department. He has success-fully applied sound business practicessuch as risk management, a robust com-munication plan, and relationship man-agement approaches to ensure all stake-holders are part of the process for identi-fying and prioritizing technology initia-tives. Thus, stakeholders feel ownershipfor the projects that are either in processor have completed.35 Jarrett and Watershave worked collaboratively to cultivate aculture that embraces continual change –i.e., a change competent organization.

Gingrich and Desmond have described aculture of transformation36 comprised ofthe beliefs, values, habits and behaviorsthat are practiced and transmitted to oth -ers – to create an environment that willeither accelerate or interfere with organi-zational transformation.

XIII. Plan for incremental change –“short term wins”

In state government there have been mul-tiple failed attempts to make changeusing the “big bang” approach. This hasbeen consistently ineffective. Typically thenext CIO coming in after one of theseattempts is tasked with “smoothing thingsover” so everyone is working togetheragain. State government is distinctly dif-ferent from private enterprise. In manyways, it is far more complex in terms oforganizational models, external relation-ships, motivations, and funding. Thisbrings about certain bounding on howgovernment establishes and implementsstrategic initiatives as well as operations.

Given the nature of state organizations,transformation efforts rely more heavilyon stakeholder support than what may beexperienced in the private sector.Stakeholders are primarily the agencieswithin the executive branch. Other criticalstakeholder relationships include the gov-

ernor and the legislature. Most stakehold-ers will provide support along the trans-formation path – however, a significantconcern within state government is inter-ruption of services, disruption to theorganization, and lengthy initiatives thatdon’t promise results within the shorttenure of some officials. A large transfor-mation initiative therefore presents signifi-cant risks related to completion of the ini-tiative within the short time frames rele-vant to policy makers, and the potentialdisruptions to operations that spanadministrations. Large transformationefforts may be viewed as too chaotic togain sustained support.37

These concerns and perceptions naturallydrive transformation efforts in state gov-ernment toward an incremental deliveryprocess. This approach provides the capa-bility to properly manage risk, expecta-tions, and relationships, ensuring transfor-mation efforts have long term success.

Change management and transformationefforts gain additional support if they aretied to initiatives such as establishing bestpractices, or standards. The underlyingrationale for these initiatives will bechange management, and transformation– but establishing this intent can be chal-lenging. Stakeholders will understand thebenefits of standards and establishingbest practices when they may notembrace outright transformation. Thisstrategy then reiterates the tenability ofan incremental delivery process. One stepat a time, one department, one line ofbusiness, one agency at a time. Thisadvice maps to Kotter’s step 6.

XIV. Conclusion – Calls to Action

State CIOs must see themselves as changeleaders. In developing the strategies, andthe management initiatives and projectsthat deliver on those strategies, the CIO

35 Interview with Tom Jarrett, CIO for the state of Delaware.36 Gingrich, N., Desmond, N., The Art of Transformation, CHT Press, 2006. ISBN 1-933966-00-937 From an interview with Steve Fletcher, CIO for the state of Utah.

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will provide many of the enabling capabil-ities to deliver the goals and objectives ofthe governor, the state legislature and thestate judiciary. This report was intendedto summarize some of the most impor-tant aspects of organizational transforma-tion and change management relevant tothat end.

Summary of state CIO Calls to Action:

1. Develop knowledge and skills in orga-nizational transformation and changemanagement in both self and staff.Maintain an enterprise perspective.Work toward a Change CompetentOrganization.

2. Establish a process for managingtransformation in incremental steps.Leverage program and project man-agement discipline in planning andimplementing change initiatives.

3. Establish collaborative relationships.Internal relationships must include thedirector of human resources that willenable the ongoing development ofassociates. The importance of specificstakeholder relationships will changeover time based on challenges, budgetand legislative cycles, advent of inno-vation, etc. External relationships mustinclude relevant expertise centers.

4. Emphasize leadership knowledge,skills and behavior in self and associ-ates.

5. Create a “learning organization” that iscontinually adapting, learning frommistakes. Approach unforeseenevents and even missteps like a HighReliability Organization – always see-ing the learning value from such cir-cumstances so the organization isalways improving.

6. Encourage innovation.

7. Cultivate trust throughout the organi-zation.

8. Leverage enterprise architecture asthe enabler of continual transforma-tion. Maintain a perspective of enter-prise architecture as a managementdiscipline not simply a methodologyfor managing technology.

9. Partner with the state legislature ontransformation initiatives – share thecredit with the legislature whenprogress is made and initiatives aresuccessful.

10. Stay in contact with peers within theNASCIO community to share ideasregarding what works and what does-n’t. Be aware of what is happening inother states. Continually collaboratewith other CIOs in order test ideas.

State CIOs must seethemselves aschange leaders.



Contributors:

Dr. Jim BryantChief Information OfficerState of South Carolina4430 Broad River RoadColumbia, SC 29210P: 803-896-0222E: [email protected]

Carol BingamanConsultantEnvironmental Health Epidemiology Environmental Public Health TrackingNetwork ProjectCommonwealth of PennsylvaniaHealth and Welfare Building7th and Forster Street, Room 933Harrisburg, PA 17120P: 717-346-3283E: [email protected]

Tony CollinsChief Enterprise ArchitectState of DelawareDepartment of Technology & Information801 Silver BlvdDover, DE 19904P: (302) 739-9588E: [email protected]

Stephanie Czuhajewski NASCIO Membership Coordinator AMR Management Services 201 East Main Street, Suite 1405 Lexington, KY 40507 P: 859-514-9156 E: [email protected]

Matthew A. D'AlessandroBusiness Development ManagerMotorola1255 Sanders Hill CircleSandy, UT 84094P: (480) 732-3101E: [email protected]

Stephen FletcherChief Information OfficerState of UtahOffice of the GovernorEast Capitol Complex BldgSte E-220Salt Lake City, UT 84114

P: 801-538-3298E: [email protected]

Christopher Ipsen, CISSP-ISSAPChief Enterprise ArchitectState of Nevada Department of Information Technology575 E. 3rd St.Carson City, Nevada 89701P: 775-684-5821E: [email protected]

Thomas JarrettSecretary and Chief Information OfficerDepartment of Technology andInformationState of DelawareDepartment of Technology & Information801 Silver Lake BlvdDover, DE 19904-2407E: [email protected]: (302) 739-9629

Tammy Mainwaring Change ManagerSouth Carolina Division of the State ChiefInformation Officer4430 Broad River RoadColumbia, SC 29210-4012P: 803-896-0774E: [email protected]

Stephen NewellIT ArchitectIBM2401 W. Jefferson StreetSpringfield, IL 62702P: (217) 793-5825E: [email protected]

Brenda Orth Director - Enterprise ArchitectureCommonwealth of Pennsylvania Governor’s Office of Administration Commonwealth Technology Center1 Technology ParkHarrisburg, PA 17110P: 717-772-8023 E: [email protected]

Doug Robinson Executive DirectorNASCIO201 East Main St., Suite 1405

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Lexington, KY 40507 P: 859-514-9153 E: [email protected]

Beth Roszman Assistant Director NASCIO201 East Main Street, Suite 1405 Lexington, Kentucky 40507 P: 859-514-9212 E: [email protected]

Bill RothChief Information Technology ArchitectState of KansasLandon State Office Building900 SW Jackson St, Suite 751Topeka, KS 66612-1275P: 785-296-2108E: [email protected]

Chris WallsSenior Website & Publications CoordinatorAMR Management Services201 E. Main St., Suite 1405Lexington, KY 40507P: 859-514-9174E: [email protected]

Pam WatersChange Management Team LeaderState of DelawareDepartment of Technology andInformationOffice of Major ProjectsP: 302-739-9815E: [email protected]

Richard YoungChief Technology ArchitectU.S. Public Sector Industry Unit5335 Wisconsin Ave NWWashington, DC 20015P: 202-243-6755E: [email protected]

Resources:NASCIO Publications

http://www.nascio.org/publications/A National Framework for CollaborativeInformation Exchange: What is NIEM?

Building Better Government throughEnterprise Architecture

Call for Action, A Blueprint for BetterGovernment: The Information SharingImperative http://www.nascio.org/advocacy/dcFlyIn/

Enterprise Architecture Development Tool-Kit v3.0

Government At Risk: Protecting Your ITInfrastructure

Harmony Helps: A Progress Report on StateGovernment Internet Presence

In Hot Pursuit: Achieving InteroperabilityThrough XML

IT Procurement and Enterprise Architecture:Recognizing the Mutual Benefits

PERSPECTIVES: Government InformationSharing Calls to Action

Staying Connected to Your Customers:Strategies and Tactics to Grow Enterprise ITServices

We Need to Talk: Governance Models toAdvance Communications Interoperability

NASCIOwww.nascio.orgCatalog of Collaborative InformationExchangehttp://www.nascio.org/nascioCommittees/EA/catalog/

List of NASCIO Committeeshttp://www.nascio.org/committees/

List of NASCIO Corporate Partnershttp://www.nascio.org/aboutNASCIO/corpProfiles/

Washington Watchhttp://www.nascio.org/advocacy/washWatch

http://www.nascio.org/aboutNASCIO/corpProfiles/

http://www.nascio.org/committees/ea/catalog/



State Government related websitesState of Delawarehttp://dti.delaware.gov/majorproj/changemgmt.shtml

State of Oklahomahttp://www.youroklahoma.com/coreoklahoma/change.html

State of Washingtonhttp://isb.wa.gov/tools/pmframework/execution/changemgmt.aspx

Web ReferencesChange Management 101: A Primerhttp://home.att.net/~nickols/change.htm

Free Management Libraryhttp://www.managementhelp.org/org_chng/trnsform/trnsform.htm

The Change Management Learning Centerhttp://www.change-management.com/

BooksChange Management by Jeffrey M. Hiattand Timothy J. Creasey. Prosci Research,Loveland, Colorado. 970-203-9332. ISBN 1-930885-18-0 paperback; ISBN 1-930885-19-9 hardcover; Library of CongressControl Number 2003111671

The Art of Transformation by NewtGingrich and Nancy Desmond. CHT Press.ISBN 1-933966-00-9. Available from TheCenter for Health Transformation, 1425 KStreet, NW, Suite 450, Washington, D.C.20005, www.healthtransformation.net

This report and the NASCIO EnterpriseArchitecture Program are funded by a grantfrom the Bureau of Justice Assistance, Officeof Justice Programs, U.S. Department ofJustice.

The opinions, findings, conclusions, and rec-ommendations contained in this publicationare those of the contributors, and do notnecessarily reflect the official positions orpolicies of the Department of Justice.

DisclaimerNASCIO makes no endorsement, expressor implied, of any products, services, orwebsites contained herein, nor is NASCIOresponsible for the content or the activi-ties of any linked websites. Any questionsshould be directed to the administratorsof the specific sites to which this publica-tion provides links. All critical informationshould be independently verified.

http://www.managementhelp.org/org_chng/trnsform/trnsform.htm

http://isb.wa.gov/tools/pmframework/execution/changemgmt.aspx

http://www.youroklahoma.com/coreoklahoma/change.html

http://dti.delaware.gov/majorproj/changemgmt.shtml

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