GAO faults department of defense on business transformation

Manufacturing & Technology News, Nov 30, 2006

"Business transformation" at the Department of Defense isn't going very well, according to the Government Accountability Office. The agency is making some progress in transforming its business operations, but "it has yet to develop a comprehensive, integrated and enterprise-wide plan that covers all key business functions and contains results-oriented goals, measures and expectations that link organizational, unit and individual performance goals, while also being clearly linked to DOD's overall investment plans," says GAO in a recent audit. "DOD also continues to need a chief management official with significant authority, experience and tenure to provide sustained leadership and integrate DOD's overall business transformation effort. Without formally designating responsibility and accountability for results, reconciling competing priorities in investments will be difficult and could impede DOD's progress in its transformation efforts."

A great deal more "remains to be accomplished" in DOD's effort to modernize its business and financial management systems, says GAO. "DOD components continue to invest billions of dollars in thousands of new and existing business system programs" that are not linked to other business and financial systems, leading to "profound risks" associated with not having a common architecture. The report, "Defense Business Transformation, A Comprehensive Plan, Integrated Efforts and Sustained Leadership are Needed to Assure Success" (GAO-07-229T), is located at www.gao.gov.