By Meredith Harrison, Gillian Perry, and Caroline Quinn
The success of an information technology (IT) system transformation is dependent on the commitment and stability of program leadership and a continuity of knowledge of key program personnel. Federal agencies can easily spend multiple years, even decades, working to transform critical systems (e.g., modernize [remain on the current system but implement hardware and/or software upgrades] or migrate [transition to a new solution]). Each day, the Federal Government uses outdated IT systems and software, referred to as “legacy systems,” to manage taxpayer dollars and execute critical functions. Although these risks are known and acknowledged, the Federal Government is unable to keep up with the rapid pace of the evolution of modern technology.
In May 2023, the Government Accountability Office (GAO) noted that Federal agencies “have struggled with appropriately planning and budgeting for modernizing legacy systems; upgrading underlying infrastructure; and investing in high quality, lower cost service delivery technology. The consequences of not updating legacy systems have contributed to, among other things, security risks, unmet mission needs, staffing issues, and increased costs.”1
Two reasons for delays in IT transformations are unpredictable funding and program leadership turnover. Efforts to combat unpredictable funding are well-documented and an ongoing focus area in the Federal Government. For example, the Modernizing Government Technology Act includes more than one measure that aims to ease recurring funding concerns. Below is a discussion of strategies to address program leadership turnover and foster stability in IT transformations, including how to work with people resistant to change.
People are an indispensable element of an effective IT transformation because the knowledge they develop, retain, and employ over the course of the program is critical. It is essential that Federal agencies analyze how processes impact its most important resource, its people, and implement strategies to lead the workforce through times of change. For entities undergoing large-scale IT transformations, workforce management best practices include: 1) building and maintaining positive momentum; 2) generating relationships with “influencers;” and 3) ongoing engagement.
Building and Maintaining Positive Momentum
Legacy systems require large and sometimes untenable amounts of resources, forcing agencies to revisit varying approaches to achieve their goal of transformation. In June 2019, GAO analyzed 65 systems and identified 10 critical systems in need of modernization, ranging in age from eight to 51 years old. As of May 2023, eight of the 10 identified systems had modernization plans, demonstrating that IT transformation programs were already in motion. However, as years pass, tenured employees can become desensitized by the promise of new technologies and imminent change and engage less frequently with IT transformation initiatives. To keep the workforce interested and ensure continuity of knowledge, it is essential to employ strategies to build and maintain positive momentum. Example strategies comprise establishing a compelling vision and developing a sense of urgency, so the vision materializes.
Change is complex, and people who have comfortably relied on legacy systems for years are required to adjust in unexpected ways. While there will typically be a contingent of people resistant to change, instituting a vision to minimize those voices may help. John P. Kotter, Professor of Leadership at Harvard Business School, stated: “If you can’t communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, you are not yet done with this phase of the transformation process.”2 A vision should evoke curiosity and attention; clarify the direction in which an organization needs to move; inspire participation; and make it impossible for even the strongest naysayers to dissent.
Whether the IT transformation effort is already underway or impending, it is crucial to develop a sense of urgency to achieve the vision. Legacy systems are not only more expensive to run and sustain, but they also expose an agency to additional cybersecurity risks. For example, some legacy systems utilize aged programming languages, such as the Common Oriented Business Language (COBOL) or rely on unsupported hardware or software. Operating business as usual is no longer acceptable, and this must be reinforced among employees at all levels, including executives. While not everyone has the same level of responsibility to implement a new system, teamwork is essential across the entity for the initiative to succeed. Kotter noted that “…Getting a transformation program started requires the aggressive cooperation of many individuals. Without motivation, people won’t help, and the effort goes nowhere.”3 In other words, operating in the status quo must seem more perilous and frustrating to users of the current system than implementing the proposed change.
Generating Relationships with “Influencers”
These days, anyone can become an “influencer” (i.e., a person with the ability to convince others to purchase a product, support a known cause, or take action). In the Federal Government, members of the Senior Executive Service (SES) fit that bill; they are required by their positions to be change champions. The achievement of an IT transformation relies on more than just support from the executive level. Influencers exist throughout an organization, and as it relates to IT transformations, their impact is even more pertinent. Participation from those responsible for leading the necessary business process reengineering and promoting advantages of the coming changes, such as subject matter experts (SME) or leaders at the grassroots level, are critical for change. This approach—top down and bottom up—constitutes a formidable governance structure that can influence and create change at all levels.
The phrase “tone at the top” is a common way to describe the values enshrined by organizational leadership. Executive-level support is essential to any change initiative and, ultimately, organizational leaders will be held responsible for delivery. The attitude of leaders approaching change makes a significant difference in how the change will be received. Accordingly, an initiative undertaken with enthusiasm is much more likely to drive engagement. The Federal Chief Financial Officer (CFO) Council is maintained by CFO Act of 1990 Agency CFOs and supported by the Office of Management and Budget (OMB), and the first purpose listed is to “[a]dvise and coordinate the activities of the agencies of its members on such matters as consolidation and modernization of financial systems.”4 Federal leaders rely on other executives to provide new perspectives, transcending traditional agency boundaries to share best practices.
Grassroots leaders represent the largest cohort of supporters in a transformation initiative. Their location in the organizational structure allows them to interface with a higher percentage of employees more consistently than the executive suite. This enables the identification of employees who are resisting change. The additional exposure facilitates communication and increases trust, which ideally transcends from everyday tasks to the eventual IT transformation, even amongst those apprehensive of the upcoming changes. One method to support these efforts is by presenting the “business case” of why the IT transformation is necessary and then offering ways for employees to get involved. When employees understand executives’ intentions and are given the opportunity to influence upcoming decisions, they are more likely to support transformation efforts throughout implementation.
Ongoing Engagement
While some level of turnover is uncontrollable, when it comes to a major IT transformation, there are some common sources of uneasiness that can be addressed. First, cook the conflict, which means communicating enough issues to motivate and maintain ongoing engagement on the need for change, but not so many issues that employees become reluctant to support. Secondly, create a plan to advertise short-term wins. This approach ensures attention is on the IT transformation, engaging employees and providing frequent reminders of why this is necessary, and that progress is ongoing.
Conflict is an inherent and necessary aspect of the change process. If managed appropriately, conflict can serve as an engine for advancement by sparking innovation and invigorating ingenuity. In the early stages of an IT transformation, conflict may simply be resistance to change or opposing views of how to handle change. One essential task for leaders is managing emotions and constructively directing the energy of employees. Regularly offering the opportunity to voice concerns without disrupting momentum can help employees manage their concern and ensure attention is focused on progress. Kotter emphasized that: “The success of the change effort – as well as your own authority and even survival – requires you to monitor your organization’s tolerance for heat and then regulate the temperature accordingly.”5 Elevating conflict to a hotter-than-average temperature can cause people to sit up and take notice. There is no incentive to change if the status quo is considered acceptable.
Communication is crucial in any change effort, let alone an IT transformation. To prevent fatigue, leaders must intentionally set and accomplish incremental goals and reiterate those wins as they occur to all employees. There is nothing more motivational than success. These targets should be achievable goals that can be completed without addressing any potential roadblocks. Employees who make the short-term wins possible should be recognized and rewarded. This is part of building momentum; employees will want to be part of an IT transformation where the positives outweigh the negatives and where change champions are recognized for their dedication. The short-term wins also provide a platform for larger or more impactful goals, promoting positive momentum.
The Time is Now
People are often referred to as the “X” factor (i.e., intangible elements that drive an initiative toward success or failure). These strategies provide opportunities to connect with employees and attain their concurrence, as well as their allegiance to triumphantly execute an IT transformation. The above organizational change management initiatives are invaluable characteristics that enable a program to thrive, not just succeed. Given the number of legacy systems in their Transformation Eras, the time to act is now. The pace of technological development is rapidly increasing, along with cyber-attacks becoming more frequent and sophisticated. There is no better time to harden Federal Government systems, and enable a better tomorrow for all users, including Federal employees and American taxpayers.
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This publication is for informational purposes only and does not constitute professional advice or services, or an endorsement of any kind.
Kearney is a Certified Public Accounting (CPA) firm focused on providing accounting and consulting services to the Federal Government. For more information about Kearney, please visit us at www.kearneyco.com or contact us at (703) 931-5600.
1 GAO 23-106821, Legacy Systems, page 2
2 Kotter, page 9, HBR Change Management
3 Kotter, page 5, HBR Change Management
4 https://www.cfo.gov/about-the-council/
5 Kotter, page 109, HBR Change Management