Achieving Transformation

1
Achieving Transformation
Business Management Modernization
Program Elizabeth A. McGrath Deputy Director,
BMMP February 1, 2005
2
BMMP Mission

• Transform business operations to achieve
  improved warfighter support while providing
  auditable financial reporting across the
  Department of Defense.

3
Scope

• How big is BMMP? It impacts
• 5.5M employees, service members and beneficiaries
• Paychecks and W-2s
• Personnel records and actions
• Medical and Dental records, appointments,
  admissions and discharges
• Training records, plans, and scheduling classes
• Travel requests, tickets, vouchers
• 400B /Year
• 267 Appropriations
• 124 Million accounting transactions
• 11.2 Million invoices
• 700B in Assets
• 600,000 Buildings at 6,700 locations in 146
  Countries
• 620B in Real Property Assets
• 2.3M square feet of buildings
• 32M acres
• 1,312 Major weapons systems
• 4.6 Million parts and supplies managed
• 150 Federal Source Laws and Regulations (Ex.
  Title 5, 10, 32, 37)

BMMP The Largest Transformation Effort in
Government or Industry
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The change.

• National Defense Authorization Act

5
Business Transformation Framework
Planning, Budgeting
Storage Transportation
Human Resources
Design Development
IT Infrastructure
Disposition
Legal
Maintenance
Procurement
Personnel Management
Business Transformation Effort Priority
W A R F I G H T E R S
Weapon System Lifecycle Management
Business Transformation Effort Priority
Real Property Installation Lifecycle Management
Business Transformation Effort Priority
Materiel Supply Service Management
Business Transformation Effort Priority
Financial Management
Business Transformation Effort Priority
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BMMP Status

• Significant Accomplishments
• Increased DoD-wide Systems Visibility --
  Identified existing inventory and developed an
  understanding of over 4000 business systems.
• Developed a Business Enterprise
  Architecture--depicting over 90 core processes,
  and reduced business rule set to a core of 25,000
  rules and regulations necessary for a desired,
  auditable end-state. Continual review and
  reduction of this set of rules will be ongoing.
• Created Financial Data Standardsbuilt and
  published a Standard Financial Information
  Structure (SFIS) that standardizes the coding of
  financial data for use in all DoD information
  systems.
• Created Process for Control of IT
  Spending--developed a systems assessment process
  for examining both new and legacy systems for
  business enterprise architecture compliance and
  subsequent investment.
• Established Cross-Organizational
  Cooperation--built working relationships between
  and among Domains and Services to ensure
  cross-process requirements are incorporated into
  systems development.

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BMMP Status

• Significant Challenges
• Approach/Scope Initial approach too
  comprehensive, and too technically focused
• Service buy-in has been challenging due to
  ongoing work creating a lack of consensus on
  program priorities
• Greater emphasis on building upon service
  achievements and the enhancement of warfighter
  support is required.
• GAO CriticismGAO has been critical of both
  program progress and governance model
• More senior-level leadership/involvement
  recommended
• Need a more concrete transition plan with
  measurable milestones leading to an auditable
  system.
• Continuity of Program Leadership three program
  managers in three years difficulty in attracting
  experienced, knowledgeable talent to maintain
  program focus.
• Commitment to a Clean Audit Need to combine
  missions to support warfighter, accomplish
  business reengineering, and attainment of
  auditability in parallel.

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Applying the Framework NAVY CONVERGE
Planning Budgeting
Human Resources
IT Infrastructure
Storage Transportation
Design Development
Disposition
Legal
Maintenance
Procurement
Personnel Management
Weapon System Lifecycle Management
Real Property Installation Lifecycle Management
Materiel Supply Service Management
Financial Management
9
BMMP Governance Structure
Business Domains
OUSD(ATL) -- Acquisition (ACQ)
OUSD(PR) -- Human Resources Management (HRM)
OUSD(ATL) -- Installations Environment (IE)
OUSD(ATL) -- Logistics (LOG)
Domain Owners Integration Team (DO/IT)


OUSD(C) -- Strategic Planning Budgeting (SPB)
Business Enterprise Architecture Review and
Change Control Board
OASD(NII) Enterprise Information
Environment (EIE) Mission Area
Business Modernization and Systems
Integration (BMSI)
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Role of Defense Business Systems Management
Committee
Business Management Modernization Program Cross
Mission Integration Transformation Program
Oversight Integrated Program Baseline Status
Reporting
Blue Elements are required by NDAA
Single Review Approval Process Using OIPT
OIPT
ATL IRB Approval Authority
PR IRB Approval Authority
NII IRB Approval Authority
FM IRB Approval Authority
Portfolio Management Transition
Planning Architecture Solutions
Oversight Solutions Implementation
Portfolio Management Transition
Planning Architecture Solutions
Oversight Solutions Implementation
Portfolio Management Transition
Planning Architecture Solutions
Oversight Solutions Implementation
Portfolio Management Transition
Planning Architecture Solutions
Oversight Solutions Implementation
Service, Component, Defense Agency Business
Execution
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BMMP Roles Responsibilities
Finance
ATL
PR
NII
Prepare Program Baseline and Transition Plan for
the OSD Governed Layer of the BEA. Work
integration between business missions
need based integration.
SFIS, OSD Ledgers for Working Capital
Appropriated Funds, Planning
Budgeting Visibility Analysis
SPS Transaction Hubs Business Analysis UID, RFID,
WAWF
DIMHRS
NCES / GIG
DOD Enterprise
OSD Required Integration to DOD Enterprise
ARMY
NAVY
AF
DLA
MC
Component Enterprises
Ensure provision of status on investments using
transformation framework, and compile
submissions, working with service CIOs.
Army Enterprise Architecture Alignment to OSD
Enterprise Portfolio Mgt ATL, Fin, PR,
NII IRB Participants
Navy Enterprise Architecture Alignment to OSD
Enterprise Portfolio Mgt ATL, Fin, PR,
NII IRB Participants
Air Force Enterprise Architecture Alignment
to OSD Enterprise Portfolio Mgt ATL, Fin, PR,
NII IRB Participants
DLA Enterprise Architecture Alignment to OSD
Enterprise Portfolio Mgt ATL, Fin, PR,
NII IRB Participants
Marine Corps Enterprise Architecture Alignment
to OSD Enterprise Portfolio Mgt ATL, Fin, PR,
NII IRB Participants
Provide support as needed to DBSMC.
BMMP name will continue, but program
significantly rescaled and restructured to
reflect this model operating under a well-defined
MDAP program baseline. Effort will be lean and
focused integration across business missions,
program baseline creation for OSD enterprise
layer, and compilation of status submissions from
Components.
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NDAA Investment Review Boards - Mission Alignment
Planning, Budgeting, Accounting
Storage Transportation
Human Resources
Design Development
IT Infrastructure
Disposition
Legal
Maintenance
Procurement
PR IRB
Personnel Management

Business Transformation Effort Priority
Weapon System Lifecycle Management
Business Transformation Effort Priority
ATL IRB
Real Property Installation Lifecycle Management
Business Transformation Effort Priority
Materiel Supply Service Management
Business Transformation Effort Priority
Finance IRB
Financial Management
Business Transformation Effort Priority
Each IRB will prioritize and review investments
in accordance with NDAA requirements based on the
capability requirements of the business mission
owner. The DBSMC will serve as the final
arbiter of conflict between business missions
when all other avenues of resolution have
failed. IRBs should use existing acquisition
program IPT oversight structures we should not
invent new oversight requirements.
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SFIS Description/Scope

• Description The SFIS is a comprehensive data
  structure that supports requirements for budget,
  financial accounting, cost/performance
  management, and external reporting across the DoD
  enterprise. SFIS is a tool that should be put in
  the hands of operational users and implemented in
  the source systems they use.
• Scope The SFIS is the means for categorizing
  financial information along several dimensions as
  needed to support financial management and
  reporting functions. Implementation of SFIS will
  make the structure inherent in all business
  processes in which financial transactions occur.

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SFIS Information Components
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SFIS/USSGL Implementation Plan

• Each DoD Core Business System will require a
  tailored SFIS/USSGL Implementation Plan/Approach
  dependent upon functional scope, degree of
  integration with other Core Business Systems, and
  proposed software solution.
• For example, implementing SFIS/USSGL in a
  Logistics COTS product will be much different
  than implementing SFIS/USSGL in a Legacy
  Budgeting system.
• Proposed Actions
• Based upon each DoD Core Business Systems
  functional scope, degree of integration with
  other Core Business Systems, and proposed
  software solution, the FM Domain will assist each
  Core Business Systems PMO with the development
  of a tailored Implementation Plan/Approach that
  is BEA compliant.
• COTS products will be expected to adopt both SFIS
  and USSGL
• Legacy systems will implement either SFIS or
  USSGL or both only where there is a justifiable
  business case to do so

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System Certification
Systems Compliance Its the Law

• Congress expects the Department of Defense to
• instill greater control over information
• technology investments.
• Section 8083 of the DoD Appropriations Act of
  2005
• (Public Law 108-287) states
• (b) CERTIFICATIONS AS TO COMPLIANCE WITH
  FINANCIAL MANAGEMENT MODERNIZATION PLAN.
• (1) During the current fiscal year, a financial
  management automated information system, a mixed
  information system supporting financial and
  non-financial systems, or a system improvement
  of more than 1,000,000 may not receive Milestone
  A approval, Milestone B approval, or full rate
  production, or their equivalent, within the
  Department of Defense until the Under Secretary
  of Defense (Comptroller) certifies, with respect
  to that milestone, that the system is being
  developed and managed in accordance with the
  Department's Financial Management Modernization
  Plan. The Under Secretary of Defense
  (Comptroller) may require additional
  certifications, as appropriate, with respect to
  any such system.

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Comptroller Certification

• Under Secretary of Defense Memo dated July 16,
  2004 mandates
• Under Secretary of Defense (Comptroller) approval
  is required before an obligation of funds in
  excess of 1 million in a fiscal year can be
  incurred for system improvements or any milestone
  approval of a business system (financial
  management automated information system,
  non-financial automated information system, or
  mixed information system supporting financial and
  non-financial functions).
• All system improvements of 1 million or less
  that are not IEEE priority 1 or 2 must be
  certified by Business Domain no delegation.
• Each Business Domain owner developed a system
  compliance plan that
• Identified the business systems requiring USD(C)
  certification/approval in accordance with the
  above requirements
• Developed a schedule to review those business
  systems and
• Obtained cross-Business Domain coordination on
  the schedule.

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Summary

• BMMP continues to move forward.....building on
  accomplishments and restructured for efficiency.
• High level attention and commitment....within
  Congress and OSD.
• Continued Emphasis on Business
  Transformation.....not just FM.
• Financial Managers will benefit....processes
  more standard, producing information supporting
  business intelligence.