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Implementing E.O. 366

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INTRODUCTIONT

he Rationalization Program seeks to result in a government with greatlyimproved performance, and organizational structures that are highly efficient andresults-oriented. The reforms that are to be instituted require governmentagencies and corporations to redefine their proper roles in society and focustheir performance improvement efforts on their core governance functions.Executive Order No. 366, signed on 04 October 2004 and withImplementing Rules and Regulations (IRR) issued on 20 May 2005, mandatesthe rationalization of all government agencies under the Executive Branch. Itrequires a strategic review of their operations and organizations, and allowsthe provision of options and incentives for those employees who may be affected.The Head of Agency is the recognized lead in this process. To facilitate itsimplementation, E.O. 366 also requires the setting up of a Change ManagementTeam (CMT) within the agency.This guidebook applies a change management perspective to theRationalization Program. It serves as a practical reference for the CMT in managingthe process of formulating and implementing the agency Rationalization Plan.This supplements E.O. 366 and its IRR, which provide the legal basis for theRationalization Program and contain all its technical requirements. A changemanagement perspective is applied here, with this guidebook focusing on thehuman aspects of implementing rationalization efforts.Since this guidebook comes months after the issuance of the IRR, it benefits from the experience of some agencies that have already pursuedrationalization activities. It is hoped that this will be a useful guide to the CMTsin the iterative process of strategic review, Plan revisions, and in implementingtheir respective Rationalization Plan. Beyond that, the change managementapproaches offered in this guidebook may serve some use in futurereorganizations or other major reforms in government agencies.A lot has been written about organizational change and its managementover the past decade. The more recent literature has included a presentation and

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Implementing E.O. 366

analyses of how various change efforts have been implemented in both publicand private sector organizations. It is the intention of this guidebook to bringtogether the varied approaches, strategies, and learnings generated by differentauthors over time so the reader can have a variety of options for application inhis or her specific context.Concepts and principles on change and its management are presentedfirst in order to provide the reader with the appropriate conceptual base.Organizational, team, and individual perspectives to change are brieflyexplained. The content and process of change are distinguished to show thescope of change management. Strategies applicable to each of the processes ofchange are described.E.O. 366 defines the technical dimensions of the Rationalization Program.A chapter is devoted to an enumeration of its requirements, to provide a quickreference to the three subsequent chapters which discuss the change processesinvolved in the major phases of the Program: preparing the rationalizationplan, implementing it, and building on the gains obtained from itsimplementation. These three chapters endeavor to illustrate the change strategiesthat may be applied to a specific process. It should be noted that change processesare iterative; these strategies may also be applied to the other phases of theProgram.Theories, concepts, and frameworks are reinforced by citing anecdotesand providing examples of what worked in some of the organizations thatimplemented the Program, and what did not. These and other change experiencesare highlighted as (boxed) insets. A Toolkit completes this guidebook. Usefultools and techniques for defining strategic directions, problem-solving anddecision-making, communication, assessing change readiness, managing conflict,project management, and managing meetings are provided.A list of references, from which many of the discussions here were taken,can be found at the end of this guidebook. Authors and sources of specificstrategies, approaches, quotes, excerpts, tables, etc., are cited in the text. Stillmany other references are available to the reader who wishes to widen his orher knowledge and practice change management within the RationalizationProgram, as well as beyond.

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ANAGING

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HANGE

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urrent environmental conditions require individuals and organizations tochange if they are to grow. The manner, direction, and rate of growth are bettermanaged if one understands and is able to manage the change process.

The Nature of Change

Change, whether organizational or personal, is a process rather than a singularevent. It is the journey from the present state, defined by certain conditions, toanother state (the destination), which is hopefully better and more desirable. Thetransition from thepresent to the desiredstate is generallydescribed as painful because it requires theunfreezing of old andhardy practices, habits,rules, and norms.Letting go is a disturbingand naturally painfulprocess. To remedy thepain, it is necessary to goin the direction ofgreater stability, an

Change is a Process

In this framework, Kurt Lewin applies the systems conceptof dynamic stability to planned change. Both present anddesired states are characterized by stability. Between thesetwo states, the organization hangs loose.