Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation Page: 4 of 33
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fragmented; (2) DOD lacks a clear and integrated business
transformation plan and investment strategy; and (3) DOD has not
designated an appropriate level senior management official-such
as a chief management official (CMO)--with the authority to be
responsible and accountable for overall business transformation
reform and related resources. In particular, GAO has suggested the
need for a chief management official to provide the sustained top-
level leadership and accountability needed by DOD to better
leverage plans, processes, systems, people and tools to achieve the
Many past administrations have tried to address the deficiencies we
have identified at DOD, with the latest attempt being launched in
2001 when Secretary Rumsfeld outlined a vision for transforming
the department that called for dramatic changes in management,
technology, and business practices. At that time, the Secretary
established the Business Management Modernization Program, or
BMMP, to effect this change. Since then, we have reported a litany
of program weaknesses and made scores of recommendations. Our
latest reports on this program, which were issued about the same
time as this Subcommittee's last oversight hearing in April 2005 on
DOD business transformation and financial accountability, were
quite critical of the program, observing that after investing about 4
years and $318 million on the BMMP, the department had made very
To its credit, the Congress, and this Subcommittee in particular, has
become increasingly focused on improving DOD's business
operations by holding several oversight hearings, such as this one,
and enacting legislation. The recent requirements in the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year 2005
aimed at strengthening DOD's management of its business systems
modernization efforts-developing a business enterprise
architecture and transition plan, and establishing system investment
management structures and processes-are particularly important
ingredients to addressing DOD's business systems modernization
2 S.780, 109' Cong., 1st Sess. introduced in the U.S. Senate on April 15, 2005, would create a
statutory Chief Management Officer.
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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/m1/4/: accessed September 25, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.