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Defense Management: Key Elements Needed to Successfully Transform DOD Business Operations

GAO-05-629T Published: Apr 28, 2005. Publicly Released: Apr 28, 2005.
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Highlights

In addition to external security threats, our nation is threatened from within by growing fiscal imbalances. The combination of additional demands for national and homeland security resources, the long-term rate of growth of entitlement programs, and rising health care costs create the need to make difficult choices about the affordability and sustainability of the recent growth in defense spending. At a time when the Department of Defense (DOD) is challenged to maintain a high level of military operations while competing for resources in an increasingly fiscally constrained environment, DOD's business management weaknesses continue to result in billions in annual waste, as well as reduced efficiencies and effectiveness. Congress asked GAO to provide its views on (1) the fiscal trends that prompt real questions about the affordability and sustainability of the rate of growth of defense spending, (2) business management challenges that DOD needs to address to successfully transform its business operations, and (3) key elements for achievement of reforms. One key element would be to establish a full-time chief management official (CMO) to take the lead in DOD for the overall business transformation effort. In this regard, we support the need for legislation to create a CMO in DOD with "good government" responsibilities that are professional and nonpartisan in nature, coupled with an adequate term in office.

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Topics

Defense cost controlEnterprise architectureFinancial managementFiscal policiesSecurity threatsInternal controlsInvestment planningInvestmentsNational security personnel systemProgram evaluationProgram managementRisk managementStrategic planningBusiness operations