GAO on DOD business transformation

While the Defense Department and military services have put out strategic or business transformation plans in the past, DOD hasn't coordinated with the services "to align their strategic planning efforts for business transformation with those of the department," according to a new Government Accountability Office report.

For example, the services' chief management officers or their deputies "do not have a defined role in DOD's strategic planning process to develop department-wide business transformation goals and objectives," the Dec. 7 report states, adding: "DOD has not aligned the military departments' goals and objectives to those of the department in DOD's Agency Strategic Plan. Leading practices for results-oriented management state that goals should align throughout an organization. In doing so, DOD would be better positioned to ensure that the military departments' strategic planning -- as well as goals and objectives -- directly contribute to those of the department."

GAO found that the Pentagon's DCMO has used the Defense Business Council "to monitor some department-wide business transformation efforts, but has not effectively monitored the military departments' performance on business transformation efforts. For example, defense business systems certification and approval initiatives were the most frequently discussed forum items since October 2015, while military department performance on business transformation efforts were not discussed. The DOD DCMO instead relied on the military departments to conduct their own performance monitoring.

"GAO found that the Council's charter does not specifically outline its responsibility for monitoring the military departments' performance," the report continues. "Without improved department-wide monitoring, DOD may not be well-positioned to assess the overall impact of its efforts to achieve business transformation."

Consequently, the report recommends that the Pentagon "define a role for the military department CMOs or DCMOs in DOD's strategic planning process, and align DOD's and the military departments' goals and objectives for business transformation in its Agency Strategic Plan. GAO also recommends that DOD take action to improve its monitoring of the military departments' performance."

In comments submitted on a prior draft of the report, DOD concurred with GAO's recommendations.