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someone else to do it. The guides can be applied at each level of the organization, regardless of size. These guides form a basis for inculcating change as a common thread in all activities of the U.S. Navy, rather than responding only to the crises generated by reduced budgets.

Guide 1—Make a Compelling Case for Change

Significant reductions in the budgets available for modernization of the Navy are a very real basis for change. The reasons for the budget reductions, and the negative impact on the Navy if changes are not made to deal with these reductions, must be communicated to the whole organization. All personnel must understand the dire consequences of continuing business as usual. In the reduced budget environment, weapons systems will not be upgraded, platforms and bases will not be maintained properly, and modernization of the forces with information systems, such as IT-21, and new platforms, such as DD-21 and JSF, will not materialize.

The magnitude of the changes required to achieve the strategic objectives of the Navy within the expected budgets must be conveyed. For example, the fiscal reductions that are required in the infrastructure to fund the desired modernization goals of the Navy in a flat overall budget situation must be made clear. The CNO must identify a plausible, quantitative set of target reductions across the Navy that will achieve the strategic objectives. Once established, these targets must be communicated to the entire organization and a compelling case made that every element in the organization must do its part to make the required changes for the good of the Navy.

Opportunities for change should be identified continuously throughout the organization as a way of stimulating innovation and motivation for improvements. Successful systems and best practices in the Navy and from elsewhere can be communicated continuously to stimulate considerations of a “change climate.” A continuing referral to the significant and continual change in the global business world is also a form of emphasizing the compelling need for continual change. The many and rapidly changing technological innovations that impact the Navy are another compelling case for embracing a continual need for creativity, innovation, and change.

The organization can be restructured to foster a compelling and continuing need for change. It can be made relatively flat to reduce bureaucracy. It can use cross-hierarchical and cross-functional teams to stimulate enterprise-wide behavior. The organization can reduce formalism to a minimum by reducing policies and procedures. It can foster communication and cooperation by providing a comprehensive and easily accessible information network. The organization should encourage more participative decision making and should use matrix assignments for people to introduce innovation.