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GAO-24-105793 1 (2023-10-18)

handle is hein.gao/gaophi0001 and id is 1 raw text is: Why This Matters Key Takeaways The Department of Defense (DOD) spends billions of dollars each year to maintain key business operations intended to support its mission, including systems and processes related to the management of contracts, finances, the supply chain, support infrastructure, and weapon systems acquisition. These operations are linked to the department's ability to perform its overall mission, and we have previously identified achieving greater efficiencies in defense business operations as one of the key mission challenges facing the department.' In addition, DOD's approach to business transformation is among the areas identified in GAO's High-Risk report.2 In our April 2023 High Risk update, we rated DOD's approach to business transformation as meeting our criteria for leadership commitment-an increase over our previous rating-and having an action plan; we continued to rate DOD's approach as partially meeting our criteria in capacity, monitoring, and demonstrated progress. The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 repealed the position of Chief Management Officer, which oversaw DOD's business operations and reform efforts. In addition, section 911 of the Act, codified at 10 U.S.C. § 125a, required DOD to take steps to reform the department to improve (1) the efficacy and efficiency of the department and (2) the ability of the department to prioritize reform efforts and assess the costs and benefits of reform.3 It also directs DOD to develop and implement policies, guidance, and a reporting framework to measure the progress of its reform efforts. In addition, it includes a provision for us to evaluate the extent to which DOD's policies, guidance, and reporting framework will enable consistent measurement of progress in reform and prioritization of reform of the department.4 This report examines how DOD manages and reforms its business operations, including the extent to which it has established organizations and guidance and is using data in these efforts. . DOD is in the early stages of implementing a new approach to reforming its business operations that emphasizes aligning reform efforts with department priorities and using existing department processes to drive reform; it is too early to determine effectiveness of these efforts. DOD uses a centralized data analytics platform called Advana to link various DOD data sources and has established a process for using data to manage and reform its business operations through the Pulse performance management analytics suite. Some applications within Pulse are more fully developed and implemented than others, and the department's use of the applications is evolving. GAO recommends that DOD develop and issue guidance clarifying the requirements for using and implementing Business Health Metrics-a Page 1 GAO-24-105793 Defense Management Page 1 GAO-24-105793 Defense Management

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