Implementing change effectively
Effectively managing a Machinery of Government (MOG) change can be one of the most challenging for any agency.
Agencies need to consider a number of organisational issues ranging from changes to performance management and outcomes reporting frameworks, business processes and IT systems, as well as changes to finance and human resource management functions. These changes have the potential to impact a department or agency at every level – its service delivery, customers, stakeholders and most inevitably its staff.
It is really the people management aspect of a MOG change is critical and requires careful planning and management, to shield and maintain staff morale and retention. The short timeframes within which MOG changes are usually executed means the breadth and depth of the change is often exacerbated.
“Undergoing a machinery of government change can be challenging. Agencies are required to consider an enormous number of issues and deal with wide-ranging matters, some of which can be very complex and time-consuming. Affected staff need to be kept informed of what is happening; legislative and government policy requirements must be complied with; and for the process to work as smoothly as possible, actions should be undertaken with a cooperative ‘whole-of-government’ spirit.”
Commonwealth of Australia ‘A Good Practice Guide – Implementing Machinery of Government Changes’ 2007 (Australian Government Good Practice Guide)
Effectively managing a MOG change
A structured, rigorous approach must be employed to ensure a smooth transition, prevent the loss of talent and maintain business continuity. Deloitte’s MOG change method is based onthe application of our tried and tested merger and acquisition methodology, drawing extensively on the integration and divestiture components.
Our method provides an approach that maintains business continuity, whilst implementing the MOG change within a short and manageable timeframe. Our approach aligns with the practical guidance outlined in the Australian Government Good Practice Guide and adopts the rigor and tools that support mergers and acquisitions conducted in a commercial environment.
Why follow a merger and acquisition approach for a MOG change?
By using principles similar to those applied to corporate integration and divestiture, departments and agencies can benefit from a structured approach that is outcome focused. A phased methodology supports tight timelines and ensures that key milestones are met with minimal business disruption. Benefits of using a merger and acquisition approach in the public sector for a MOG change include:
• a centrally managed approach ensuring coordination
• use of a proven methodology that works
• an approach that is outcome focused
• a clear way of engaging the workforce during the change
• a means of minimising surprises/embarrassment and mitigating risks
• maintaining business continuity
• budget changes supported by analysis.
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