Change-readiness is the ability of an information systems (IS) organization to deliver strategic IT applications within short development cycle times by utilizing a highly skilled internal IS workforce. This paper examines two important questions: What are the design elements of a change-ready IS organization? How can transformations to such designs be effectively managed? Insights to these questions are generated through a case study of the conceptualization and implementation of an innovative organization design within a large IS unit at Bell Atlantic, a Regional Bell Operating Company. First, a rich description is provided of the components (strategy, structure, processes, people skills, reward systems) of a centers of excellence (CoE) design that has yielded measurable gains in IS performance. Then, an analysis of the two-year implementation of this CoE design is provided in terms of anticipated and unanticipated change actions, as well as a summary of "lessons learned." The conclusion describes the design as a model worthy of consideration by other IS managers for developing change-readiness IT capabilities. Comparisons with other models for the IS organization are then drawn.