Defense Management: Actions Needed to Sustain Reform Initiatives and Achieve Greater Results
NSIAD-00-72
Published: Jul 25, 2000. Publicly Released: Jul 25, 2000.
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Highlights
Pursuant to a congressional request, GAO reviewed information on the actions needed to sustain reform initiatives and achieve greater results in the Department of Defense (DOD), focusing on the: (1) effectiveness of the Department's management emphasis and oversight structure in providing sustained direction and emphasis to the program; (2) status of individual reform initiatives and the barriers that could limit their success; and (3) extent to which the Reform Initiative resulted in savings enabling DOD to shift operation and maintenance funds to support weapons modernization.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Because DOD decided not to implement GAO's prior recommendations to: (1) undertake a comprehensive approach in reforming its major business and support activities; and (2) develop an investment plan to better ensure that it is undertaking the most cost-effective and important reform, and because of the importance of sustaining the initiatives into future administrations, Congress may wish to consider requiring the Department to follow the framework provided by the Government Performance and Results Act to establish a more comprehensive, integrated strategy and action plan for reforming the Department's major business processes and support activities, particularly in the areas of acquisition, financial management, and logistics reform. |
Closed – Not Implemented
|
The Senate Armed Services Committee and others in the Congress are concerned about DOD's management and infrastructure reform efforts and have elicited commitments from Secretary Rumsfeld to place high priorities on them during his tenure in office. Financial management reform and base closures, in particular, were key topics during confirmation hearings for the Secretary and the Service Secretaries as well as during DOD's authorization and appropriation hearings. However, the exact requirements placed on DOD by the Congress to reform its business processes and close additional bases will not be known until the Defense Authorization and Appropriations Bills are completed and the Committee Reports are published. Therefore, GAO is leaving this recommendation open for the time being. |
| Because DOD decided not to implement GAO's prior recommendations to: (1) undertake a comprehensive approach in reforming its major business and support activities; and (2) develop an investment plan to better ensure that it is undertaking the most cost-effective and important reform, and because of the importance of sustaining the initiatives into future administrations, Congress may wish to consider requiring the Department to more fully identify investment funding requirements for the major reform initiatives and Department-wide funding requirements for the Reform Initiative and communicate them to Congress during the annual budget process. |
Closed – Not Implemented
|
The Senate Armed Services Committee and others in the Congress are concerned about DOD's management and infrastructure reform efforts and have elicited commitments from Secretary Rumsfeld to place high priorities on them during his tenure in office. Financial management reform and base closures, in particular, were key topics during confirmation hearings for the Secretary and the Service Secretaries as well as during DOD's authorization and appropriation hearings. Whether the Congress will require DOD to fully identify investing funding requirements for its major reform efforts that it undertakes under the new administration will not be known until the Defense Authorization and Appropriations Bills are completed and the Committee Reports are published. Therefore, GAO is leaving this recommendation open for the time being. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To build on the effectiveness of the current management framework of the Defense Reform Initiative and to help achieve desired results, the Secretary of Defense should strengthen the role and effectiveness of the Defense Management Council. These actions should include efforts to focus on the Council's attention on the key reform initiatives that, if addressed in an integrated fashion could produce the greatest results. |
Closed – Not Implemented
This recommendation has been partially implemented. The Secretary of Defense formed two new internal management committees that, in effect, succeed the Defense Management Council with respect to recommending ways for the Department to improve business practices. The first committee, known as the Senior Executive Committee, is to function as a business board of directors for the Department. It is comprised of the Secretary, Deputy Secretary, Under Secretary (AT&L), and the Service secretaries. The second committee, the Business Initiative Council, is comprised of the Service secretaries and the Under Secretary (AT&L). The Council is responsible for recommending and implementing good business practices. The Secretary of Defense has set an expectation that the committee members will work together to make sure recommendations are implemented. These two committees, however, have just been formed and have not established their priorities. Nevertheless, their creation satisfies the intent of the recommendation to strengthen the role and effectiveness of the Defense Management Council in that the Committees' membership includes the most senior managers in the Department.
|
| Department of Defense | To build on the effectiveness of the current management framework of the Defense Reform Initiative and to help achieve desired results, the Secretary of Defense should strengthen the role and effectiveness of the Defense Management Council. These actions should include efforts to strengthen the Council's decision-making role, authority, and accountability, particularly with respect to the key Department-wide acquisition, financial management, and logistic reforms. |
Closed – Implemented
The Secretary of Defense eliminated the Defense Management Council and formed two new internal management committees that will recommend ways for the Department to improve business practices. The newly established groups will be comprised of a small cadre of officials at the top of the Department--the Secretary of Defense, Deputy Secretary, Under Secretary (AT&L) and the Service secretaries. Collectively, officials on these newly formed groups are at a higher-level within the Department and have greater authority than the Defense Management Council.
|
| Department of Defense | To build on the effectiveness of the current management framework of the Defense Reform Initiative and to help achieve desired results, the Secretary of Defense should strengthen the role and effectiveness of the Defense Management Council. These actions should include efforts to provide the Council with current and accurate information on the status of key reform initiatives so it can better gauge progress and identify and address implementation problems. |
Closed – Not Implemented
The Secretary of Defense has formed two new internal management committees that will recommend ways for the Department to improve business practices and transform the military into a 21st Century fighting force. Since these committees have just been formed, they have not had an opportunity to set priorities and recommend new initiatives for implementation.
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