Transforming Business Operations: Eight High-Risk Areas

DOD is one of the largest and most complex organizations to manage in the world. While the combat effectiveness of U.S. forces is unparalleled, DOD has not been as effective in managing its ongoing business operations, resulting in substantial waste and inefficiency that has adversely affected mission performance and increased the vulnerability of programs to fraud, waste, abuse, and mismanagement.

DOD senior leadership has shown a commitment to transforming business and taken many steps in the last few years to further this effort. However, overhauling DOD's business operations will take many years to accomplish and represents a huge and possibly unprecedented management challenge.
Highlights of GAO-08-462T (PDF)
For example, eight individual items on GAO's list of high-risk government operations and several of the governmentwide high-risk areas apply to key DOD business operations. The eight defense-specific areas include DOD's overall approach and management of business transformation, as well as its financial management, business systems modernization, weapon systems acquisition, contract management, supply chain management, infrastructure management, and granting of personnel security clearances.
Highlights of GAO-07-1072 (PDF)