DOD Transformation Challenges and Opportunities
Gao ID: GAO-07-789CG April 17, 2007This is a Comptroller General Presentation delivered to the Acquisition Community Conference at the Defense Acquisition University in Fort Belvoir, VA on April 17, 2007. Major topics of this presentation include: the objective of transformation for DOD, systemic defense acquisition challenges, DOD's increasing reliability of contractors, DOD contract management challenges, and selected potential DOD transformation related actions.
GAO-07-789CG, DOD Transformation: Challenges and Opportunities
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United States Government Accountability Office:
DOD Transformation: Challenges And Opportunities:
The Honorable David M. Walker:
Comptroller General of the United States:
Acquisition Community Conference:
Defense Acquisition University:
Fort Belvoir, VA:
April 17, 2007:
The Case for Change:
The federal government is on a "burning platform," and the status quo
way of doing business is unacceptable for a variety of reasons,
including:
Past fiscal trends and significant long-range challenges:
Selected trends and challenges having no boundaries:
Additional resource demands due to Iraq, Afghanistan, incremental
homeland security needs, and recent natural disasters i n the United
States:
Numerous government performance/accountability and high risk
challenges:
Outdated federal organizational structures, policies, and practices:
Rising public expectations for demonstrable results and enhanced
responsiveness:
Composition of Federal Spending:
[See PDF for image] - graphic text
3 pie charts with 5 items each.
1966:
Defense: 43.0%;
Social Security: 15.0%;
Medicare & Medicaid: 1.0%;
Net interest: 7.0%;
All other spending: 34.0%.
1986:
Defense: 28.0%;
Social Security: 20.0%;
Medicare & Medicaid: 10.0%;
Net interest: 14.0%;
All other spending: 29.0%.
2006:
Defense: 20.0%;
Social Security: 21.0%;
Medicare & Medicaid: 19.0%;
Net interest: 9.0%;
All other spending: 32.0%.
Source: Office of Management and Budget.
Note: Numbers may not add to 100 percent due to rounding.
[End of figure]
Federal Spending for Mandatory and Discretionary Programs:
[See PDF for image] - graphic text
3 pie charts with 3 items each.
1966:
Discretionary: 67%;
Mandatory: 26%;
Net Interest: 7%.
1986:
Discretionary: 44%;
Mandatory: 42%;
Net Interest: 14%.
2006:
Discretionary: 38%;
Mandatory: 53%;
Net Interest: 9%.
Source: Office of Management and Budget.
[End of figure]
Major Reported Long-Term Fiscal Exposures ($ trillions):
Explicit liabilities (Publicly held debt, military & civilian pensions
& retiree, health, other);
2000: $6.9;
2006: $10.4;
Percent Increase: 52%.
Commitments & Contingencies: e.g., PBGC, undelivered orders;
2000: $0.5;
2006: $1.3;
Percent Increase: 140%.
Implicit exposures;
2000: $13.0;
2006: $38.8;
Percent Increase: 197%.
Implicit exposures: Future Social Security benefits;
2000: $3.8;
2006: $6.4;
Percent Increase: [Empty].
Implicit exposures: Future Medicare Part A benefits;
2000: $2.7;
2006: $11.3;
Percent Increase: [Empty].
Implicit exposures: Medicare Part B benefits;
2000: $6.5;
2006: $13.1;
Percent Increase: [Empty].
Implicit exposures: Medicare Part D benefits;
2006: $8.0;
Percent Increase: [Empty].
Total;
2000: $20.4;
2006: $50.5;
Percent Increase: 147%.
Sources: 2000 and 2006 Financial Reports of the United States
Government.
Note: Estimates for Social Security and Medicare are at present value
as of January 1 of each year, and all other data are as of September
30. Totals may not add due to rounding. Percentage increases are based
on actual data and may differ from increases calculated from rounded
data shown in table.
[End of table]
Potential Fiscal Outcomes Alternative Simulation-Discretionary Spending
Grows with GDP and Expiring Tax Provisions Extended (January 2007)
Revenues and Composition of Spending as a Share of GDP:
[See PDF for image] - graphic text:
Line/Stacked Bar combo chart with 4 groups, 1 line (Revenue) and 4 bars
per group.
2006;
Net interest: 1.7%;
Social Security: 4.2%;
Medicare & Medicaid: 3.9%;
All other spending: 10.5%;
Revenue: 18.4%.
2015;
Net interest: 2.1%;
Social Security: 4.6%;
Medicare & Medicaid: 4.9%;
All other spending: 9.6%;
Revenue: 17.6%.
2030;
Net interest: 5.9%;
Social Security: 6.8%;
Medicare & Medicaid: 8.3%;
All other spending: 9.5%;
Revenue: 17.8%.
2040;
Net interest: 12.1%;
Social Security: 7.6%;
Medicare & Medicaid: 10.3%;
All other spending: 9.5%;
Revenue: 17.8%.
Source: GAO's January 2007 analysis.
Notes: AMT exemption amount is retained at the 2006 level through 2017
and expiring tax provisions are extended. After 2017, revenue as a
share of GDP is held constant-implicitly assuming that action is taken
to offset increased revenue from real bracket creep, the AMT, and tax-
deferred retirement accounts.
[End of figure]
Current Fiscal Policy Is Unsustainable:
The "Status Quo" Is Not an Option:
* We face large and growing structural deficits largely due to known
demographic trends and rising health care costs:
* GAO's simulations show that balancing the budget in 2040 could
require actions as large as:
- Cutting total federal spending by 60 percent or:
- Raising federal taxes to two times today's level:
Faster Economic Growth Can Help, but It Cannot Solve the Problem:
* Closing the current long-term fiscal gap based on reasonable
assumptions would require real average annual economic growth in the
double-digit range every year for the next 75 years:
* During the 1990s, the economy grew at an average 3.2 percent per
year:
* As a result, we cannot simply grow our way out of this problem. Tough
choices will be required:
The Way Forward: A Three-Pronged Approach:
1. Improve Financial Reporting, Public Education, and Performance
Metrics:
2. Strengthen Budget and Legislative Processes and Controls:
3. Fundamentally Reexamine and Transform for the 21St Century (i.e.,
entitlement programs, other spending, and tax policy):
Solutions Require Active Involvement from both the Executive and
Legislative Branches:
DOD Faces the Challenge of Balancing Near Term and Long Term Wants,
Needs, and Affordability:
In FY 2007 constant dollars, DOD's regular budget has grown from about
$351 billion in FY 2001 to over $431 billion in FY 2007. Supplemental
funding for the Global War on Terrorism (GWOT) has added hundreds of
billions of dollars to DOD's available budgetary resources:
Near term, DOD is paying for the GWOT and facing challenges in
maintaining readiness:
Long term, DOD must address military pay and benefits and weapons
modernization and force transformation, which may not be affordable or
sustainable:
DOD's efforts to transform its business systems and processes will take
many years to achieve, but could free up resources through efficiencies
and reduction in waste:
DOD's Regular Budget Growth: (Excluding GWOT):
DOD Regular Appropriation FY 2001-2007:
Dollars in billions:
[See PDF for Image]- graphic text:
Bar graph.
Dollars in billions.
Year: 2001;
Amount: $351.4.
Year: 2002;
Amount: $378.1.
Year: 2003;
Amount: $409.8.
Year: 2004;
Amount: $411.5.
Year: 2005;
Amount: $422.5.
Year: 2006;
Amount: $425.5.
Year: 2007;
Amount: $377.6.
Source: GAO analysis of Congressional Research Service and
appropriations data. Note: All amounts are in constant 2007 dollars.
[End of figure]
Total Budgetary Resources Provided to DOD Total Defense Resources FY
2005-2007 (as of April 2007):
[See PDF for Image] - graphic text:
Bar graph each divided into 3 or 4 sections.
Year: 2005;
Regular: $422.5;
Bridge: $26.3;
Supplement: $83.2;
Estimated Supplement Request: $0.
Year: 2006;
Regular: $425.5;
Bridge: $51.2;
Supplement: $75.8;
Estimated Supplement Request: $0.
Year: 2007;
Regular: $377.6;
Bridge: $70.
Supplement: $0.
Estimated Supplement Request: $99.7.
Source: GAO analysis of Congressional Research Service and
appropriations data.
Notes: Bridge, or Title IX, is the section of DOD's regular defense
appropriation that outlines emergency spending provisions for
operations in support of GWOT. For fiscal year 2007, DOD requested an
emergency supplemental appropriation of $93.4 billion, which is still
being considered by the Congress. All amounts are in constant 2007
dollars.
[End of figure]
DOD's Reported GWOT Obligations for FY 2001 thru 2006 and for FY 2007
through February 2007:
Dollars in billions:
[See PDF for Image] - graphic text:
Bar graph.
Dollars in billions.
FY01: $0.2.
FY02: $28.4.
FY03: $67.1.
FY04: $71.3.
FY05: $84.8.
FY06: $98.4.
FY07: $55.3.
Source: GAO analysis of DOD data.
Note: Reported GWOT obligations include Operation Noble Eagle,
Operation Enduring Freedom, and Operation Iraqi Freedom. Figures
include about $17.9 billion obligated in FY 2002 - 2003 that DOD did
not include in its cost reports. Figures do not include any obligations
for classified activities. GAO has assessed the reliability of DOD's
obligation data and found significant problems, such that they may not
accurately reflect the true dollar value of GWOT obligations.
[End of figure]
21st Century Challenges Report:
Provides background, framework, and questions to assist in reexamining
the base:
Covers entitlements & other mandatory spending, discretionary spending,
and tax policies and programs:
Based on GAO's work for the Congress:
Issued February 16, 2005:
Source: GAO.
Twelve Reexamination Areas:
Mission Areas:
* Defense:
* International Affairs:
* Education and Employment:
* Natural Resources, Energy and Environment:
* Financial Regulation and Housing:
* Retirement and Disability:
* Health Care:
* Science and Technology:
* Homeland Security:
* Transportation:
Crosscutting Areas:
* Improving Governance:
* Reexamining the Tax System:
Illustrative 21st Century Questions: National Defense:
How should the historical allocation of resources across services and
programs be changed to reflect the results of a forward-looking
comprehensive threat/risk assessment as part of DOD's capabilities-
based approach to determining defense needs?
Can DOD afford to invest in transformational systems such as the Future
Combat System and national missile defense at the same time it
continues to pursue large investments in legacy systems such as the F-
22A and new systems like the Joint Strike Fighter, especially if cost
growth and schedule delays continue at historical rates?
Given the global availability of rapidly advancing technology, does DOD
need to reconsider its approach for identifying critical technologies
and protecting those technologies from being exploited in order to
maintain its military superiority?
Given the growing encumbrance of pay and benefit costs, especially
health care, within DOD's budget, how might DOD's recruitment,
retention, and compensation strategies (including benefit programs) be
reexamined and revised to ensure that DOD maintains a total military
and civilian workforce with the mix of skills needed to execute the
national security strategy while using resources in a more targeted,
evidence-based, and cost-effective manner?
Do the role, size, and structure of forces and capabilities comprising
the strategic triad need to be adjusted to meet the challenges of
providing strategic deterrence in the new security and fiscal
environment?
Does DOD need to create a senior management position responsible and
accountable for taking a strategic, integrated, and sustained approach
to managing the day-to-day business operations of the department,
including ongoing efforts to transform DOD's business operations and
address the many related and longstanding high-risk areas? Should
specific qualifications requirements and periods of tenure or terms be
established for selected DOD positions related to key business
operations?
GAO's High-Risk List 2007:
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Strategic Human Capital Management[A];
Designated High Risk: 2001.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Managing Federal real Property[A];
Designated High Risk: 2003.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Protecting the federal government's Information Systems and the
Nation's Critical Infrastructures;
Designated High Risk: 1997.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Implementing an transforming the Department of Homeland Security;
Designated High Risk: 2003.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Establishing appropriate and effective information-sharing mechanisms
to improve Homeland Security;
Designated High Risk: 2005.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A];
Designated High Risk: 2005.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Business Systems
Modernization;
Designated High Risk: 1995.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Personnel Security
Clearance Program;
Designated High Risk: 2005.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Support Infrastructure
Management;
Designated High Risk: 1997.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Financial Management;
Designated High Risk: 1995.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Supply Chain
Management(formerly Inventory Management);
Designated High Risk: 1990.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
DOD approach to business transformation[A]: DOD Weapon Systems
Acquisition;
Designated High Risk: 1990.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
FAA Air Traffic Control Modernization;
Designated High Risk: 1995.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Financing the Nation's Transportation System[A] New;
Designated High Risk: 2007.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Ensuring the Effective Protection of Technologies Critical to U.S.
National Security Interests[A] New;
Designated High Risk: 2007.
High Risk Areas: Addressing Challenges in Broad-based Transformations:
Transforming Federal Oversight of Food Safety[A] New;
Designated High Risk: 2007.
High Risk Areas: Managing Federal Contracting More effectively: DOD
Contract Management;
Designated High Risk: 1992.
High Risk Areas: Managing Federal Contracting More effectively: DOE
Contract Management;
Designated High Risk: 1990.
High Risk Areas: Managing Federal Contracting More effectively: NASA
Contract Management;
Designated High Risk: 1990.
High Risk Areas: Managing Federal Contracting More effectively:
Management of Interagency Contracting;
Designated High Risk: 2005.
High Risk Areas: Assessing the Efficiency and Effectiveness of Tax Law
Administration: Enforcement of Tax Laws[A];
Designated High Risk: 1990.
High Risk Areas: Assessing the Efficiency and Effectiveness of Tax Law
Administration: IRS Business Systems Modernization;
Designated High Risk: 1995.
High Risk Areas: Modernizing and Safeguarding Insurance and Benefit
Programs: Modernizing Federal Disability Program[A];
Designated High Risk: 2003.
High Risk Areas: Modernizing and Safeguarding Insurance and Benefit
Programs: Pension Benefit Guaranty Corporation Single-Employer
Insurance Program;
Designated High Risk: 2003.
High Risk Areas: Modernizing and Safeguarding Insurance and Benefit
Programs: Medicare program[A];
Designated High Risk: 1990.
High Risk Areas: Modernizing and Safeguarding Insurance and Benefit
Programs: Medicaid program[A];
Designated High Risk: 2003.
High Risk Areas: Modernizing and Safeguarding Insurance and Benefit
Programs: National Flood Insurance Program[A];
Designated High Risk: 2006.
Source: GAO.
[A] Legislation is likely to be necessary, as a supplement to actions
by the executive branch, in order to effectively address this high-risk
area.
[End of table]
Key Oversight Areas for the 110th Congress:
Examples of targets for near-term oversight:
Addressing governmentwide acquisition and contracting issues:
Transforming the business operations of the Departments of Defense:
Examples of policies and programs that are in need of fundamental
reform and re-engineering:
Reviewing U.S. and coalition efforts to stabilize and rebuild Iraq and
Afghanistan:
Ensuring a strategic and integrated approach to prepare for, respond
to, recover, and rebuild from catastrophic events:
Examples of governance issues that should be addressed to help ensure
an economical, efficient, ethical, and equitable federal government
capable of responding to the various challenges and capitalizing on
related opportunities in the 21 century:
Reviewing the need for various budget controls and legislative process
revisions in light of current deficits and our long-range fiscal
imbalance:
Reviewing the impact and effectiveness of various management reforms:
Suggested DOD Related Oversight Areas for the 110th Congress:
Address acquisition and contracting issues:
Transform business operations, including addressing all related "High
Risk" areas:
Enhance information sharing, accelerate transformation, and improve
oversight related to the Nation's intelligence agencies:
Strengthen efforts to prevent proliferation of nuclear, chemical, and
biological weapons and their delivery systems (missiles):
Ensure a successful transformation of the nuclear weapons complex:
Review U.S. and Coalition efforts to stabilize and rebuild Iraq and
Afghanistan, including how these efforts are to be funded:
Assess overall military readiness, transformation efforts, and existing
plans to assure the sustainability of the All-Volunteer Force:
Note: From November 17, 2006 letter to the 110th Congress (GAO-07-
235R):
Transformation:
Webster's definition:
An act, process, or instance of change in structure appearance, or
character:
A conversion, revolution, makeover, alteration, or renovation:
The Objective of Transformation for DOD:
Creating the future of warfare and protecting our national security
while improving how the department, including all of its various
component parts, does business in order to support and sustain our
position as the world's preeminent military power within current and
expected resource limits:
Definition of Waste:
Waste involves the taxpayers as a whole not receiving reasonable value
for money in connection with any government funded activities due to an
inappropriate act or omission by players with control over or access to
government resources (e.g., executive, judicial, or legislative branch
employees, contractors, grantees, or other recipients):
Importantly, waste represents a transgression that is less than fraud
and abuse and most waste does not involve a violation of law. Rather,
waste relates primarily to mismanagement, inappropriate actions, or
inadequate oversight:
Examples of Waste:
Illustrative examples of underlying causes of waste in the acquisitions
and contracting area could include:
Unreasonable, unrealistic, inadequate, or frequently changing
requirements:
Failure to use competitive bidding in appropriate circumstances:
Failure to engage in selected pre-contracting activities for contingent
events (e.g., hurricanes, military conflicts):
Congressional directions (e.g., earmarks), and agency spending actions
where the action would not otherwise be taken based on an objective
value and risk assessment and considering available resources:
Systemic Defense Acquisition Challenges:
1. Service budgets are allocated largely according to top line
historical percentages rather than Defense-wide strategic assessments
and current and likely resource limitations:
2. Capabilities and requirements are based primarily on individual
service wants versus collective Defense needs (i.e. based on current
and expected future threats) that are both affordable and sustainable
over time:
3. Defense consistently over-promises and under-delivers in connection
with major weapons, information, and other systems (i.e. capabilities,
costs, quantities, schedule):
4. Defense often employs a "plug and pray approach" when costs escalate
(i.e. divide total funding dollars by cost per copy, plug the number
that can be purchased, then pray that Congress will provide more
funding to buy more quantities):
5. Congress sometimes forces the department to buy items (e.g. weapons
systems) and provide services (e.g. additional health care for non-
actives) that the department does not want and we cannot afford:
6. DOD tries to develop high risk technologies after programs start
instead of setting up funding, organizations, and processes to conduct
high risk technology development activities in low cost environments
(i.e. technology development is not separated from product
development). Program decisions to move into design and production are
made without adequate standards or knowledge:
7. Program requirements are often set at unrealistic levels, then
changed frequently as recognition sets in that they cannot be achieved.
As a result, too much time passes, threats may change, and/or members
of the user and acquisition communities may simply change their mind.
The resulting program instability causes cost escalation, schedule
delays, fewer quantities and reduced contractor accountability:
8. Contracts, especially service contracts, often do not have
definitive or realistic requirements at the outset in order to control
costs and facilitate accountability:
9. Contracts typically do not accurately reflect the complexity of
projects nor appropriately allocate risk between the contractors and
the taxpayers (e.g. cost plus, cancellation charges):
10. Key program staff rotate too frequently thus promoting myopia and
reducing accountability (i.e. tours based on time versus key
milestones). Additionally, the revolving door between industry and the
Department presents potential conflicts of interest:
11. The acquisition workforce faces serious challenges (e.g. size,
skills, knowledge, succession planning):
12. Incentive and award fees are often paid based on contractor
attitudes and efforts versus positive results (i.e. cost, quality,
schedule):
13. Inadequate oversight is being conducted by both the Defense
Department and the Congress which results in little to no
accountability for recurring and systemic problems:
14. Some individual program and funding decisions made within the
Department and by the Congress serve to undercut sound policies:
15. Lack of a professional, term-based CIVIO at DOD serves to slow
progress on defense transformation and reduce the chance of success in
the acquisitions/contracting and other key business areas:
DOD Increasingly Relies on Contractors for Mission-Critical Services:
DOD's obligations on service contracts increased from $82.3 billion in
fiscal year 1996 to $141.2 billion in fiscal year 2005 (expressed in
constant FY05 dollars):
In fiscal year 2006, DOD's obligations increased to $152.8 billion:
According to DOD officials, the amount obligated on service contracts
exceeded the amount the department spent on major weapon systems:
Growth in services coincided with decreases in DOD's workforce:
To a large extent, the growth in services was not a managed outcome:
Growth in Services Poses Challenges to the Acquisition Workforce:
DOD carried out this downsizing without ensuring it had the specific
skills and competencies needed to accomplish DOD's mission:
The amount, nature, and complexity of contracting for services have
increased, challenging DOD's ability to:
* maintain a workforce with the requisite knowledge of market
conditions and industry trends,
* the ability to prepare clear statements of work, the technical
details about the services they procure, and:
* the capacity to manage and oversee contractors:
DOD Contract Management Challenges:
DOD continues to experience poor acquisition outcomes and missed
opportunities to improve its approach to buying goods and services. For
example, DOD did not:
* employ a strategic approach to acquiring services that enabled it to
determine whether investments were achieving desired outcomes:
* always make sound use of various techniques to acquire goods and
services (i.e. award and incentive fees, competitive acquisition
approaches):
* have a comprehensive plan to ensure its workforce had the right
skills and capabilities to manage and assess contractor performance:
Effective Management of Services Requires Both Strategic and
Transactional Efforts:
Strategic Level:
Effective service acquisition requires the leadership, processes, and
information necessary for mitigating risks, leveraging buying power,
and managing outcomes:
Transactional Level:
Individual service transactions must focus on buying the right thing,
the right way, while getting the desired outcomes:
A comprehensive approach would use the strategic and transactional
factors in a complementary manner to tailor management activity to
ensure preferred outcomes:
Source: GAO (analysis).
Examples of Shortcomings of DOD's Service Acquisition Approach:
Lacked a strategic plan to gauge whether ongoing and planned efforts
were achieving intended results:
Lacked reliable information on the volume and composition of service
acquisitions:
Management and review structure provided only limited insight:
* DOD was unable to determine which or how many transactions had been
reviewed:
* Military departments had reviewed proposed acquisitions accounting
for less than 3 percent of service obligations in fiscal year 2005:
* No post-award assessments:
Focused on awarding contracts, with less attention paid to developing
requirements and assessing contractor performance:
Individual acquisitions generally not used to inform strategic
direction:
Determining the Appropriate Role of Contractors in Meeting DOD's Needs:
Contractors have an important role to play in the discharge of the
government's responsibilities, and in some cases the use of contractors
can result in improved economy, efficiency, and effectiveness:
There may be occasions when contractors are used to provide certain
services because the government lacks another viable and timely option.
In such cases, the government may actually be paying more and incurring
higher risk than if such services were provided by federal employees:
Examining the appropriate role for contractors is among the challenges
in meeting the nation's defense and other needs in the 21 st Century:
Selected Potential DOD Transformation Related Actions:
Revise the current approach to developing national military strategy
(e.g., order, integration):
Take a longer range, and more enterprise-wide approach to program
planning and budget integration (e.g., life cycles, opportunity costs):
Employ a more strategic and integrated approach to business information
system efforts and financial audit initiatives:
Differentiate between war fighting and business systems development,
implementation, and maintenance (e.g., resource control, project
approval):
Focus on achieving real success in connection with financial management
efforts (e.g., systems, controls, information, compliance and
opinions):
Employ a total force management approach to planning and execution
(e.g., military, civilian, contractors):
Get the design and implementation of the NSPS right, including
modernizing and integrating the DOD, Service, domain, unit, and
individual performance measurement and reward systems:
Revise the process for developing and communicating key changes (e.g.,
DOD transformation, NSPS):
Reduce the number of layers, silos, and footprints:
Recognize the difference between approving and informing:
Review and revise current military compensation policies and practices
(e.g., more targeted and market-based):
Strengthen emphasis on horizontal and external activities (e.g.,
partnerships):
Create a Chief Management Officer (CMO) to drive the business
transformation process:
GAO's Recommendation for a CMO at DOD:
GAO has recommended that DOD establish a CIVIO to provide strong and
sustained leadership over all major business transformation efforts.
The CIVIO should:
* Have a proven track record as a business process change agent in a
large, complex, and diverse organization:
* Be a Deputy Secretary or Principal Under Secretary of Defense for
Management:
* Serve a set term (e.g., 5 to 7 years) that spans administrations with
potential for reappointment:
* Be a single point within the department with the perspective and
responsibility, as well as authority, to develop an overall and
integrated business transformation plan and help to ensure the
effective implementation of related functional management and business
transformation efforts:
Key Leadership Attributes Needed for These Challenging and Changing
Times:
Courage:
Integrity:
Creativity:
Stewardship:
Partnership:
On the Web:
Web site: [Hyperlink, http://www.gao.gov/cghome.htm:
Contact:
Paul Anderson, Managing Director, Public Affairs AndersonP1@gao.gov
(202) 512-4800:
U.S. Government Accountability Office 441 G Street NW, Room 7149
Washington, D.C. 20548:
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