The Montana Commission on Executive Reorganization was created in 1969 to develop a plan for a more efficient executive branch of state government. The Commission worked to streamline this branch from 161 independent executive agencies listed in the Montana codes to a total of 19 departments. With the passage of the Executive Reorganization Act of 1971 which abolished certain agencies and transferred their powers and duties to other agencies, the Commission constructed a plan of implementation and recodification necessary to make the reorganization a reality. The Commission ceased operation in 1972.

The Executive Reorganization Office, as part of the Governor's Office, carried out the work of amending numerous statutes to reflect the changes created by the Executive Reorganization Act. In June 1973 the work of this office was transferred to the Government Operations Unit (GOU) directed by Richard L. Llewellyn. The GOU was created by Governor Thomas Judge and was to be "responsible for studying, monitoring, and evaluating the organizational structure, management practices, and functions of the executive branch agencies in order to improve the manageability of state government."

In its capacity as the "general research and planning arm of the governor," the GOU reviewed the status and membership of advisory boards and councils, reviewed organizational charts for all agencies in the executive branch, reviewed all proposed legislation from the executive branch to ensure compatibility with the Executive Reorganization Act and other state laws, completed the recodification bills reflecting the reorganization approved by the legislature, and reviewed the management and fiscal practices of executive agencies. Special projects completed by the GOU include: a comprehensive study of the Boulder River School and Hospital which produced a report recommending a program to improve efficiency and effectiveness; a feasibility study for a centralized laundry service for the Department of Institutions; a study of the Aging Services Program of the Department of Social and Rehabilitation Services; a proposal to coordinate the functions of several state agencies to provide services to Montana's developmentally disabled citizens; resolution of a dispute between the Department of Administration and the University System concerning fiscal accountability; a study of the feasibility of the establishment of a Department of Motor Vehicles; and revision of the Statewide Budget and Accounting System (SBAS).

The GOU staff included research analysts Paul McCann and Patrick McLaughlin; management systems analyst Franklin Smoyer; fiscal systems analyst Thomas McCarvel; and staff attorney Patrick Melby. Funding for the office came from state general funds and from U.S. Department of Housing and Urban Development grant funds. The functions of the Government Operations Unit were absorbed by the Office of Budget and Program Planning in late 1974.