Foreign military sales reinvention in the department of the navy: Turning ideas into action - Navy International Programs - United States

Program Manager, Nov-Dec, 2001 by Gibson Leboeuf

Signs of change are everywhere, especially in the world of business and commerce, with daily reports of mergers, acquisitions, and spin-offs in search of profit and efficiency The art and science of change embrace such concepts as total quality management, business reengineering, process redesign, and, more recently, the Department of Defense (DoD) Revolution in Business Affairs. Private-sector experts point to the benefits of change, as large corporations raise efficiency and sharpen the bottom line by cutting red tape and empowering workers.

But, does this approach work in the public sector, down the halls and inside the cubicles of government as well? Absolutely! "Reengineering is about operational excellence," wrote Michael Hammer and James Champy, in Reengineering the Corporation. Within government agencies, in an atmosphere where policy is more important than profit, the biggest challenges are breaking down the bureaucratic barriers and finding accurate measures of performance.

Change has made an indelible mark in the public sector. For example, inside DoD, the Department of the Navy (DoN) office responsible for international policy and acquisition -- the Navy International Programs Office (IPO) -- has made great progress using business reengineering concepts. With its vast array of stakeholders, especially Navy and Marine Corps systems commands and program offices, "Navy IPO" has made change management an integral concept in its vision of how things are done. Navy IPO deals in policy matters such as international Research and Development (R&D) agreements, and the application of export controls to limit the spread of sensitive technologies. But, in Foreign Military Sales (EMS), it's the world of acquisition and EMS program management where "the rubber meets the road," and where FMS reinvention has produced the greatest impact.

International programs are important for three reasons: military, political, and economic.

Military

First, international programs contribute to cooperation between military forces, enhancing interoperability between U.S. forces and those of their friends and allies. This leads to the ability to operate in coalition with other nations, creating a real force multiplier to either keep the peace or respond effectively in time of conflict.

Political

Second, an active set of international programs supports political objectives by strengthening contacts and ties among allies and friends to reinforce our alliances and promote regional security.

Economic

Third, in today's era of limited resources and interlinked economies, international cooperation in the defense sector leads to reduced unit cost in the acquisition of ships, aircraft, communications gear, and support or training equipment - everything that a modem military force needs to guarantee critical interests are protected. Certainly, we are more secure when the U.S. economy is strong, as well as the economies of our allies and friends. Whether provided via FMS or direct commercial sales, the export of defense-related systems or services can only strengthen our own industrial base and expand the pool of talent and resources we will need to draw upon in time of war.

Not only are international programs a good idea, they are mandated in DoD acquisition regulations. Just look at the latest versions of the DoD 5000 series. Regulations explain that all DoD systems, where applicable, need to support successful joint and combined operations. This means the interoperability of systems to support the coalition warfighter, and the sharing between allies of promising technologies.

Early in the life of a program, an analysis of alternatives needs to include a careful review of what our allies can offer. The acquisition strategy must consider foreign participation, whether that means turning to similar projects by major allies or NATO organizations, options for cooperative development and production, the use of promising commercial options, or via the sales of U.S. equipment.

A Hotbed of Innovation and Change

Since 1997, Navy IPO has employed Integrated Product Teams (IPT) to study and realign its internal processes. Under the banner of "reengineering," these IPTs, composed of our own employees, developed some valuable ideas and recommendations such as expediting contracts close-out; cutting out unnecessary steps in the processing of LOAs (Letters of Offer and Acceptance, which are the primary contractual vehicle between governments); and finding ways to make the foreign customers money go further.

But this was just the start. On Sept. 9, 1998, the Secretary of the Navy gave formal status to the process of change when he chartered Navy IPO as a Reinvention Laboratory. He directed Navy IPO to "continue improving workforce training, identify new ideas for cutting red tape, and renew its focus on customer service." The basis of all this activity was the National Performance Review, the goals of which were clear:

* Be customer-oriented.

* Cut red tape:

* Employ the best practices of the private sector.