# Presentation: 049604

## SHEPHERDING ORGANIZATIONAL CHANGE

*Or...Helping 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

## 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 President’s Management Agenda*
- How Many Years Ago!?
- When Will We Get Back to Normal?

## Where’d My Cheese Go?Two examples

*Financial Services Competitive Sourcing Study*
*EM Consolidated Business Center*

## FINANCIAL SERVICES STUDY

**RL - 3/1**
- 1,000’

**AL **- 32/2
- 8,650’

**NV **- 3/0
- 192 ‘

**ID** - 4/0
- 360’

**OAK**- 6/0
- 1,936’

-        **OR **- 20/8
-         3,462’

**SR **- 6/1
- 1,000’

**CH - **8/0
-     3,000’

**RF  **7/0

-  **GFO **- 0/1
-  975’

-    **OH** -5/2

**FCR **- 17/2**	**
- 2,925’

**NETL**- 4/5
- 1,751’

**LOCATIONS WITH FTEs**

*Department of Energy*

- Legend:
- 	Headquarters Office
- 	Financial Service Centers	Field Offices

**OSTI **- 1/0

**NPR** - 1/2
-     7,000’

**CAC - **40/0
-  9,248’

**SPRO** - 0/0

**Totals**
**FTEs  159/23**

*3/11/2003*

## 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

## 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
***Watch Out Claudia—You’re Next!!***

**FINANCIAL SERVICES STUDY**
**Fictional Future**

**Total**
**FTEs  125**

**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?

**Fargo Fin**
**Svc Center**

## EM Consolidated Business Center

_***Project Objective: ***_*** Support and Enhance EM’s 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**

##  Determine Consolidated Business Center location options based upon business case criteria

_**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)***

_**Candidate Supported Sites:**_

_**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

## 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 it’s 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

## 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.)
- There’s No Going Back!

## 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 Customer’s Business is Going
- How Each Function Interrelates with the Other Functions
- If You Don’t Understand Their Business—You’re at a Disadvantage (i.e., you will get snookered!)