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GAO-11-181R 1 (2011-01-26)

handle is hein.gao/gaobaanwd0001 and id is 1 raw text is: i ~G A 0 A~counta bilty I Integrity * Reliability United States Government Accountability Office Washington, DC 20548 January 26, 2011 Congressional Committees Subject: Defense Business Transformation: DOD Needs to Take Additional Actions to Further Define Key Management Roles, Develop Measurable Goals, and Align Planning Efforts The Department of Defense (DOD) spends billions of dollars each year to maintain key business operations intended to support the warfighter, including systems and processes related to the management of contracts, finances, the supply chain, support infrastructure, and weapon systems acquisition. We have designated a number of these areas as high risk because of their vulnerability to fraud, waste, abuse, and mismanagement and because of opportunities to achieve greater efficiencies and free up resources for higher-priority needs.' In 2005, we identified DOD's approach to business transformation as a high-risk area because (1) DOD had not established clear and specific management responsibility, accountability and control over business transformation-related activities and applicable resources; and (2) DOD lacked a clear strategic and integrated plan for business transformation with specific goals, measures and accountability mechanisms to monitor progress.2 Because of the complexity and magnitude of the challenges facing DOD in improving business operations, we have reported the need for a chief management officer (CMO) with significant authority and experience to focus the necessary attention and sustain progress. We also recommended that DOD develop a comprehensive, integrated, and enterprisewide transformation plan, supported by a strategic planning process. Moreover, we recommended that DOD institutionalize in directives the roles, responsibilities, and relationships among the various business-related entities and committees that comprise its management framework and expand that framework beyond business systems modernization to all business transformation efforts. Both DOD and Congress have taken actions to address DOD's management of business transformation efforts. For example, DOD designated the Deputy Secretary 'See for example, GAO, High-Risk Series: An Update, GAO-09-271 (Washington, DC.: Jan. 2009). 2GAO, GAO's 2005 High-Risk Update, GAO-05-350T (Washington, D.C.: Feb. 17, 2005). 3GAO, Defense Business Transformation: Achieving Success Requires a Chief Management Officer to Provide Focus and Sustained Leadership, GAO-07-1072 (Washington, D.C.: Sept. 5, 2007). GAO-11-181R Defense Business Transformation

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