SHEPHERDING ORGANIZATIONAL CHANGE

1
SHEPHERDING ORGANIZATIONAL CHANGE

• OrHelping DOE Move the Cheese!
• Paul Anderson
• Deputy Chief Financial Officer, SR
• (soon to be) SR Senior Planner
• a.k.a. Financial Services Competitive Sourcing
  Study Coordinator
• a.k.a. EM Consolidated Business Center Project
  Manager

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Once Upon A Time

• There was no NNSA
• There was no NNSA Service Center
• There was no Competitive Sourcing Study
• There was no EM Consolidated Business Center
• There was no MBE
• There was no Office of Legacy Management
• There was no Presidents Management Agenda
• How Many Years Ago!?
• When Will We Get Back to Normal?

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Whered My Cheese Go?Two examples

• Financial Services Competitive Sourcing Study
• EM Consolidated Business Center

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Totals FTEs 159/23
FINANCIAL SERVICES STUDY LOCATIONS WITH FTEs
RL - 3/1 1,000
ID - 4/0 360
NPR - 1/2 7,000
CH - 8/0 3,000
GFO - 0/1 975
NETL- 4/5 1,751
OH -5/2
CAC - 40/0 9,248
OAK- 6/0 1,936
RF 7/0
FCR - 17/2 2,925
NV - 3/0 192
OR - 20/8 3,462
OSTI - 1/0
AL - 32/2 8,650
SR - 6/1 1,000
SPRO - 0/0
Legend Headquarters Office Financial Service
Centers Field Offices
Department of Energy
3/11/2003
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Financial Services A-76 Study

• Announced March 22, 2002
• PWS Final March 14, 2003
• Proposals Due August 5, 2003
• Select Service Provider January 9, 2004
• Implement Service Provider Spring 2004
• Implement New Accounting System 10-1-2004
• Close-out Current Accounting System January 2005

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Financial Services A-76 Study Cheesy Issues

• 5 Stages of Grieving (taking care of the
  workforce)
• Maintaining Critical Workforce to Close Out the
  Old Accounting System
• Early-outs/Buy-outs?
• Retention Bonuses?
• Temporary Accountants?
• Inter-Governmental Support Agreements?
• Managing the Transition to a New Service Provider
• Transfer of Function (Surprise!!)?
• Hire and Relocate 125 MEO Personnel in Less than
  5 Months?
• How to Staff the Residual Organization?
• Freeze DOE Hiring to Allow for Reassignments?
• Relocation Allowances?
• Priority Placement?
• Potential RIF Process (Fractional FTEs, No
  Position Freezes)?
• Managing the Costs
• Consultants
• Service Provider Stand-up Costs
• Relocation, Retention Bonus, Buy-out, RIF Costs
• Appropriation Issues

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FINANCIAL SERVICES STUDY Fictional Future
Total FTEs 125
Fargo Fin Svc Center

• Critical CFO Issues
• What changes re Field CFO roles and
  responsibilities?
• Organizationally, who owns Fargo?
• How do we staff up Fargo while keeping existing
  systems running and subsequently de-staff
  existing sites?
• If Fargo is a transfer of function, how can we
  continue to support close-out of DISCAS/MARS?
• How can we best support a workforce in turmoil?
• Where can we anticipate problems and gaps?
• What do we do if Fargo is delayed beyond 10-1-04?
• Where does the funding come from to stand-up
  Fargo?

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EM Consolidated Business Center

• Project Objective Support and Enhance EMs
  Accelerated Closure Mission by Capturing a
  Critical Closure Skills Cadre
• CONSOLIDATION DRIVERS
• Soon-to-close sites need uninterrupted business
  services as they ramp down and lose internal
  staff
• Soon-to-close sites need business services exit
  strategy
• Capture critical closure skills and capabilities
  to support Accelerated Cleanup throughout the
  complex
• Consolidation permits greater economies of scale
• 21st Century Information Technology permits
  greater economies of scale
• Departmental and EM Program Objectives to reduce
  EM Environmental Liability drives the need for
  projects that reduce cost of operations

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Candidate Supported Sites

• Functions to be Provided
• Budget, Finance, Financial Review
• Information Resource Management
• Human Resources/Training
• Legal Services
• Real Personal Property/Trans
• Contracting/Procurement
• Technical Assistance (future)

• Project Approach/Methods
• Analyze functional workload and customer needs
• Develop draft step-by-step plan for
  transitioning support to the Consolidated
  Business Center
• Confer with functional HQ sponsors to assure
  sound migration plan
• Determine Consolidated Business Center location
  options based upon business case criteria
• Name key management personnel (Center Director
  and Direct Reports)
• Recruit and Relocate Center staff
• Utilize our Consultant to coordinate
  facilitate the migration of functions to the
  Center

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CBC Cheesy Issues

• 5 Stages of Grieving
• Maintaining Critical Workforce While CBC
  Stands-up
• Managing the Transition
• Managing the Costs
• Getting the Go-ahead Before its Too Late!
• Recruitment Strategy
• Determining Staffing Grade Levels
• Determining Delegations of Authority (CBC is
  neither fish nor fowl)
• How Does CBC Integrate with A-76 Outcomes?
• Process for Migrating Support to Another Site
• Breaking Paradigms

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What Does the Future Hold?

• More A-76 Studies (piecemealing)
• Payroll Outsourcing
• More Consolidations
• E-Gov Initiatives (Centralized business systems
  including payroll, travel, financial, others)
• I-Manage Roll-Out
• Landlord Transfers
• Site Closures
• Legacy Management Mortgage Growth
• Downsizing
• Civil Service Structural Changes (including
  paybanding, pay-for-performance, streamlined
  hiring, etc.)
• Theres No Going Back!

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Who Will Survive the Future?

• Better Question is, Who will get ahead in the
  future?
• Possibility Thinkers
• Options Thinkers
• Negotiators
• Communicators
• Those Who Understand the Whole Business
• Functional Processes, Systems, Workforce
  Competencies
• Where the Customers Business is Going
• How Each Function Interrelates with the Other
  Functions
• If You Dont Understand Their BusinessYoure at
  a Disadvantage (i.e., you will get snookered!)