Abiol Jr.

, Renante A

152-0438

Activity 2

1. Steps in delivering new value for the organization

2. Enterprise Capabilities

Enterprise Capability
An enterprise capability is an organized collection of specific people, process, information,
technology and other resources which together function to realize an enterprise ability to satisfy
the need for

Governance to control the resources of the enterprise

Organization to organize the resources of the enterprise
Integration to integrate the resources of the enterprise
Compliance to verify the resources of the enterprise are compliant with governance (controlled)
Assurance to validate the resources of the enterprise are controlled
 Enterprise management of all the capabilities needed in order to accomplish the goal of serving
the enterprise mission and sustaining the existence of the enterprise system
Enterprise capabilities are standard capabilities realized in a systematic ability by the enterprise
capability system.

Enterprise capability is interconnected with and interdependent on business capability, process

capability, information capability, IT capability, system offering and service offering.

3. Transformation vision and strategy for the organization

Definition: Transformation planning is a process of developing a [strategic] plan for

modifying an enterprise's business processes through the modification of policies, procedures,
and processes to move the organization from an "as is" state to a "to be" state.

Change Management is the process for obtaining the enterprise (or business) intelligence to
perform transformation planning by assessing an organization's people and cultures to
determine how changes in business strategies, organizational design, organizational
structures, processes, and technology systems will impact the enterprise.

Keywords: business transformation, complex systems, lifecycle development, organizational

change management, organizational development, organizational strategy, organizational
transformation, psychology, social sciences, stakeholder management, systems thinking, trust

MITRE SE Roles & Expectations: MITRE systems engineers (SEs) are expected to be able
to assist in formulating the strategy and the plans for transforming a customer's
engineering/technical organization, structure, and processes, including the MITRE support
to that organization. MITRE SEs are expected to recommend interfaces and interactions
with other organizations, lead change, collaborate, build consensus across the MITRE
support and other stakeholders for the transformation, and to assist in communicating the
changes. To execute these roles and meet these expectations, MITRE system engineers are
expected to understand the complex, open-systems nature of how organizations change,
and the importance of developing the workforce transformation strategies as a critical,
fundamental, and essential activity in framing a project plan. Systems engineers must
understand the social processes and other factors (e.g., leadership, culture, structure,
strategy, competencies, and psychological contracts) that affect the successful
transformation of a complex organizational system.

Context

The objective of organizational change management is to enable organization members and

other stakeholders to adapt to a sponsor's new vision, mission, and systems, as well as to
identify sources of resistance to the changes and minimize resistance to them.
Organizations are almost always in a state of change, whether the change is continuous or
episodic. Change creates tension and strain in a sponsor's social system that the sponsor
must adapt to so that it can evolve. Transformational planning and organizational change is
the coordinated management of change activities affecting users, as imposed by new or
altered business processes, policies, or procedures and related systems implemented by
the sponsor. The objectives are to effectively transfer knowledge and skills that enable
users to adopt the sponsor's new vision, mission, and systems and to identify and minimize
sources of resistance to the sponsor's changes.

Best Practices and Lessons Learned

Implementation of a large-scale informational technology (IT) transformation project

affects the entire organization. In a technology-based transformation project, an
organization often focuses solely on acquiring and installing the right hardware and
software. But the people who are going to use the new technologies—and the processes
that will guide their use—are even more important. As critical as the new technologies may
be, they are only tools for people to use in carrying out the agency's work.

Figure 1. Organizational Transition Model

As shown in Figure 1, the discipline of organizational change management (OCM) is

intended to help move an organization's people, processes, and technology from the
current "as is" state to a desired future "to be" state. To ensure effective, long-term, and
sustainable results, there must be a transition during which the required changes are
introduced, tested, understood, and accepted. People have to let go of existing behaviors
and attitudes and move to new behaviors and attitudes that achieve and sustain the desired
business outcomes. That is why OCM is a critical component of any enterprise
transformation program: It provides a systematic approach that supports both the
organization and the individuals within it as they plan, accept, implement, and transition
from the present state to the future state.

Studies have found that the lack of effective OCM in an IT modernization project leads to a
higher percentage of failure. According to a 2005 Gartner survey on "The User's View of
Why IT Projects Fail," the findings pinned the failure in 31 percent of the cases on an OCM
deficiency. This demonstrates the importance of integrating OCM principles into every
aspect of an IT modernization or business transformation program.
Navigating the Change Process

MITRE systems engineers need to assess change as a process and work in partnership with
our sponsors to develop appraisals and recommendations to identify and resolve complex
organizational issues. The change process depicted in Figure 2 is designed to help assess
where an organization is in the change process and to determine what it needs to do as it
moves through the process.

Figure 2. An Organizational Change

Process

By defining and completing a change process, an organization can better define and
document the activities that must be managed during the transition phase. Moving through
these stages will help ensure effective, long-term, and sustainable results. These stages
unfold as an organization moves through the transition phase in which the required
transformational changes are introduced, tested, understood, and accepted in a manner
that enables individuals to let go of their existing behaviors and attitudes and develop any
new skills needed to sustain desired business outcomes.

It is very common for organizations to lose focus or create new initiatives without ever
completing the change process for a specific program or project. It is critical to the success
of a transformation program that the organization recognizes this fact and is prepared to
continue through the process and not lose focus as the organizational change initiative is
implemented. Commitment to completing the change process is vital to a successful
outcome. Information on forming a transition strategy to document and assist with
maintaining focus can be found in the SEG article "Formulation of Organizational
Transformation Strategies."

Framework for Change

In any enterprise transformation effort, there are a number of variables that exist
simultaneously and affect the acceptance of change by an organization. These variables
range from Congressional mandates to the organization's culture and leadership to the
attitude and behavior of the lowest-ranking employee. At MITRE, social scientists use the
Burke-Litwin Model of Organizational Performance and Change, or other approaches in
line with the sponsor's environment and culture, to assess readiness and plan to implement
change. The Burke-Litwin Model identifies critical transformational and transactional
factors that may impact the successful adoption of the planned change. In most government
transformation efforts, the external environment (such as Congressional mandates),
strategy, leadership, and culture can be the most powerful drivers for creating
organizational change. Further information on performing organizational assessments is
found in the SEG article "Performing Organizational Assessments."

Transformation Strategies

Most organizations will ultimately follow one of three approaches to transformation. The
type of approach is related to the culture and type of organization (e.g., loosely coupled
[relaxed bureaucratic organizational cultures] or tightly coupled [strong bureaucratic
organizational cultures]):

• Data-driven change strategies emphasize reasoning as a tactic for bringing about a change
in a social system. Experts, either internal or external to the sponsor, are contracted to
analyze the system with the goal of making it more efficient (leveling costs vs. benefits).
Systems science theories are employed to view the social system from a wide-angle
perspective and to account for inputs, outputs, and transformation processes.

The effectiveness of a sponsor's data driven change strategy will be dependent upon (a) a
well-researched analysis that the transformation is feasible, (b) a demonstration that
illustrates how the transformation has been successful in similar situations, and (c) a clear
description of the results of the transformation. People will adopt the transform when they
understand the results of the transformation and the rationale behind it.

• Participative change strategies assume that change will occur if impacted units and
individuals modify their perspective from old behavior patterns in favor of new behaviors
and business/work practices. Participative change typically involves not just changes in
rationales for action, but changes in the attitudes, values, skills, and percepts of the
organization.

For this change strategy to be successful, it is dependent on all impacted organizational

units and individuals participating both in the change (including system design,
development, and implementation of the change) and their change "re-education." The
degree of success is dependent on the extent to which the organizational units, impacted
users, and stakeholders are involved in the participative change transition plan.

• Compliance-based change strategies are based on the "leveraging" of power coming from
the sponsor's position within the organization to implement the change. The sponsor
assumes that the unit or individual will change because they are dependent on those with
authority. Typically, the change agent does not attempt to gain insight into possible
resistance to the change and does not consult with impacted units or individuals. Change
agents simply announce the change and specify what organizational units and impacted
personnel must do to implement the change.
The effectiveness of a sponsor's compliance-based change strategy is dependent on the
discipline within the sponsor's chain of command, processes, and culture and the capability
of directly and indirectly impacted stakeholders to impact sponsor executives. Research
demonstrates that compliance-based strategies are the least effective.

Regardless of the extent of the organizational change, it is critical that organizational

impact and risk assessments be performed to allow sponsor executives to identify the
resources necessary to successfully implement the change effort and to determine the
impact of the change on the organization. Further information on change strategies and
organizational assessments is found in the SEG article "Performing Organizational
Assessments," and in those listed above.

Leadership & Stakeholders

MITRE system engineers need to be cognizant of the distinction between sponsor

executives, change agents/leaders, and stakeholders:

• Sponsor executives: Typically, sponsor executives are the individuals within an organization
that are accountable to the government. Sponsor executives may or may not be change
leaders.
• Change leaders: Typically, the change leader is the sponsor's executive or committee of
executives assigned to manage and implement the prescribed change. Change leaders must
be empowered to make sponsor business process change decisions, to formulate and
transmit the vision for the change, and to resolve resistance issues and concerns.
• Stakeholders: Typically, stakeholders are internal and external entities that may be directly
(such as participants) or indirectly impacted by the change. A business unit's dependence
on a technology application to meet critical mission requirements is an example of a directly
impacted stakeholder. An external (public/private, civil, or federal) entity's dependence on
a data interface without direct participation in the change is an example of an indirect
stakeholder.

Note: Both directly and indirectly impacted stakeholders can be sources of resistance to a
sponsor's transformation plan. Further information on communicating to stakeholders is
found in the SEG articles "Stakeholder Assessment and Management" and "Effective
Communication and Influence."

Resistance

Resistance is a critical element of organizational change activities. Resistance may be a

unifying organizational force that resolves the tension between conflicts that are occurring
as the result of organizational change. Resistance feedback occurs in three dimensions:

• Cognitive resistance occurs as the unit or individual perceives how the change will affect its
likelihood of voicing ideas about organizational change. Signals of cognitive resistance may
 include limited or no willingness to communicate about or participate in change activities
(such as those involving planning, resources, or implementation).
• Emotional resistance occurs as the unit or individuals balance emotions during change.
Emotions about change are entrenched in an organization's values, beliefs, and symbols of
culture. Emotional histories hinder change. Signals of emotional resistance include a low
emotional commitment to change leading to inertia or a high emotional commitment
leading to chaos.
• Behavior resistance is an integration of cognitive and emotional resistance that is
manifested by less visible and more covert actions toward the organizational change.
Signals of behavioral resistance are the development of rumors and other informal or
routine forms of resistance by units or individuals.

Resistance is often seen as a negative force during transformation projects. However,

properly understood, it is a positive and integrative force to be leveraged. It is the catalyst
for resolving the converging and diverging currents between change leaders and
respondents and creates agreement within an organizational system. Further information
on performing organizational assessment and developing feedback and resistance
mitigations is found in the SEG articles "Performing Organizational Assessments" and
"Effective Communication and Influence."

Creating the Organizational Transition Plan

As discussed in the beginning of this section (see Figure 1), successful support of
individuals and organizations through a major transformation effort requires a transition
from the current to the future state. Conducting an organizational assessment based on the
Burke-Litwin Model provides strategic insights into the complexity of the impact of the
change on the organization. Once the nature and the impact of the organizational
transformation are understood, the transformation owner or champion will have the
critical data needed to create an organizational transition plan.

Typically, the content or focus of the transition plan comes from the insights gained by
conducting a "gap" analysis between the current state of the organization (based on the
Burke-Litwin assessment) and the future state (defined through the strategy and vision for
the transformation program). The transition plan should define how the organization will
close the transformational and transactional gaps that are bound to occur during
implementation of a transformation project. Change does not occur in a linear manner, but
in a series of dynamic but predictable phases that require preparation and planning if they
are to be navigated successfully. The transition plan provides the information and activities
that allow the organization to manage this "non-linearity" in a timely manner.

It should be noted that large organizational change programs, which affect not only the
headquarters location but also geographically dispersed sites, will require site-level
transition plans. These plans take into account the specific needs and requirements of each
site. Most importantly, they will help "mobilize" the organizational change team at the site
and engage the local workforce and leaders in planning for the upcoming transition.
Strategic Organizational Change Communications

Figure 3. The
Strategic Organizational Communications Process

A key component of the transition plan should address the strategic communications (see
Figure 3) required to support the implementation of the transformation. Open and frequent
communication is essential to effective change management. When impacted individuals
receive the information (directly and indirectly) they need about the benefits and impact of
the change, they will more readily accept and support it. The approach to communication
planning needs to be integrated, multi-layered, and iterative. Further information on this
subject is found in the SEG article "Effective Communication and Influence."