DOD Approach to Business Transformation

• Successful transformation of DOD's business operations will require focused and dedicated leadership, a sound strategic planning process, and a strong, fully aligned management framework to support and implement its transformation efforts.

  Highlights of GAO-09-272R (PDF)

• DOD's senior leadership has shown a commitment to transforming business operations and taken many steps in the last few years to further this effort. For example, DOD has created various entities to guide its efforts, such as the Defense Business Systems Management Committee and the Business Transformation Agency, as well as developed plans and other tools. In May 2007, the Secretary of Defense designated the Deputy Secretary of Defense as the Chief Management Officer (CMO).

  Highlights of GAO-08-462T (PDF)

• Also, the National Defense Authorization Act for Fiscal Year 2008 statutorily designated the Deputy Secretary of Defense as the department's CMO, created a Deputy CMO position, and designated the undersecretaries of each military department as CMOs for their respective department. It also requires the Secretary of Defense, acting through the CMO to develop a strategic management plan for transforming business operations.

  Highlights of GAO-08-462T (PDF)

• DOD has outlined broad Chief Management Officer and Deputy Chief Management Officer roles and responsibilities in directives, established a Deputy Chief Management Office and an Assistant Deputy Chief Management Officer in the interim until a Deputy Chief Management Officer is appointed. In July 2008, DOD issued its first plan and an update in July 2009. However, the Deputy Chief Management Officer position, has not been assigned clear decision-making authority or accountability for results. DOD has also not yet clearly defined the relationship between the Deputy Chief Management Officer and the military department Chief Management Officers or the unique and shared responsibilities of various governance entities, such as identifying how they would manage and integrate transformation efforts.

  Highlights of GAO-09-272R (PDF)

^ Back to topWhat Needs to Be Done

Congress has clearly recognized the need for executive-level attention to business transformation, as well as sound planning, and has taken important action to codify key responsibilities. Because of the complexity and long-term nature of DOD's business transformation efforts, GAO has reported the need for the Chief Management Officer to be a separate position with significant authority, experience, and a term. As DOD continues to develop its approach, GAO remains open to the possibility of further progress. However, because of the roles and responsibilities currently assigned to key positions, it is still unclear that DOD will be able to provide the long-term sustained leadership needed to achieve significant results in its business operations.

Highlights of GAO-09-272R (PDF)

• In light of the legislative requirements in the National Defense Authorization Act for Fiscal Year 2008, DOD needs to clearly establish the roles and responsibilities, as well as relationships, among various business-related positions and governance entities.

  Highlights of GAO-09-272R (PDF)

• DOD also needs to further develop its Strategic Management Plan so that it is clear, comprehensive, integrated, and enterprisewide plan for business transformation that is supported by a strategic planning process that addresses all DOD's business operations and includes specific goals, measures, and accountability mechanisms to measure progress.

  Highlights of GAO-09-272R (PDF)

^ Back to topKey Reports

Defense Business Transformation

Defense Business Transformation

Organizational Transformation

Defense Business Transformation

Defense Business Transformation