Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation Page: 6 of 33
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executives. Our work was performed in accordance with U.S.
generally accepted government auditing standards.
Summary
In summary, let me reiterate what Comptroller General Walker has
stated on many occasions-transforming the department's business
operations is an absolute necessity given the long-term fiscal
outlook, and accomplishing this transformation will require
sustained and persistent leadership for at least 5 to 7 years. The
department, under the leadership of Acting Deputy Secretary
England, recently began taking some positive steps in this direction,
particularly with respect to the business systems modernization
management changes called for in the fiscal year 2005 National
Defense Authorization Act, as well as with certain other DOD high-
risk areas. As of today, our preliminary work suggests that progress
has been made in complying with the provisions in the act, but more
needs to be done. DOD agrees, and it intends to do more. With
respect to DOD's compliance with the authorization act's
requirements, we will be issuing a full report to this and other
defense congressional committees by November 25, 2005.
In addition, DOD's Business Transformation Agency offers potential
benefits relative to the department's business systems
modernization efforts if the agency can be properly organized,
resource, and empowered to effectively execute its roles and
responsibilities and is held accountable for doing so. The agency
faces several challenges, including standing up a functioning
acquisition organization within a short period of time. As DOD
moves forward with implementing this agency, it will be important
for it to address these issues.
Furthermore, DOD has taken several actions intended to advance
transformation, such as establishing management structures like the
Business Transformation Agency, and developing the enterprise
transition plan. While these steps are positive, their primary focus
appears to be on business system modernization. Business
transformation is much broader and encompasses planning,
management, structures, and processes related to all key business
areas. As DOD continues to evolve its transformation efforts,Page 4
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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.. (https://digital.library.unt.edu/ark:/67531/metadc292747/m1/6/: accessed March 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.