Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation Page: 3 of 33
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Mr. Chairman and Members of the Subcommittee:
I appreciate the opportunity to be here today to discuss business
systems modernization and overall business transformation at the
Department of Defense (DOD)-two areas that are on our high-risk
list of federal programs and activities that are at risk of waste, fraud,
abuse, or mismanagement and in need of broad-based
transformation.' At the onset, I would like to pass on Comptroller
General Walker's gratitude to this Subcommittee for your continued
oversight of key government operations and management issues,
including DOD's business transformation activities. The active role
of this Subcommittee is essential to ultimately assuring DOD's
continued progress in business transformation, while enhancing
public confidence in DOD's stewardship of the hundreds of billions
of taxpayer funds it receives each year.
Given its size and mission, DOD is one of the largest and most
complex organizations to effectively manage in the world. While
DOD maintains military forces with significant capabilities, it
continues to confront pervasive, decades-old management problems
related to its business operations, including outdated and ineffective
systems and processes that support these forces. At a time when
DOD is challenged to maintain a high level of military operations
while competing for resources in an increasingly fiscally
constrained environment, DOD's business area weaknesses
continue to result in reduced efficiencies and effectiveness that
waste billions of dollars every year. Of the 25 areas on our 2005
high-risk list, 8 are DOD programs or operations and 6 are
governmentwide high-risk areas for which DOD shares some
responsibility. These areas touch on all of DOD's major business
operations. In some cases, such as DOD's financial management,
weapons acquisition, and business systems modernization areas, we
have been highlighting high-risk challenges for a decade or more.
This year we added DOD's overall approach to business
transformation to our list of high-risk areas because (1) DOD's
business improvement initiatives and control over resources are
1 GAO, High-Risk Series: An Update, GAO-05-207 (Washington, D.C.: January 2005).
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United States. Government Accountability Office. Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation, text, November 9, 2005; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc292747/m1/3/: accessed November 19, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.