Final Report of the 199596 SECDEF Fellows Program

1
Final Report of the Secretary of
Defense Corporate Fellows Program 2001 - 2002
2
2001 - 2002 Fellows

• CAPT Natalie Young-Aranita Cisco Systems, Inc.
• San Jose, CA
• Col David Ziegler 3M Company
• St. Paul, MN
• LTC June Sellers Merck Company, Inc.
• Whitehouse Station, NJ
• LtCol Clyde Woltman United Technologies
• Hartford, CT
• LTC Bob Stanley Sears, Roebuck Company
• Hoffman Estates, IL
• Lt Col Linda Medler Oracle Corporation
• Reston, VA
• CDR Joe Beadles AMS, Inc.
• Fairfax, VA

3
Agenda

• Background
• Common Observations/Recommendations
• Individual Experiences (time permitting)

4
SDCFP Background

• SECDEF concerns for future Service leaders
• Open to organizational and operational change
• Recognize opportunities made possible by info
  tech
• Appreciate resulting revolutionary changes
  underway
• Affecting society and business now
• Affecting culture and operations of DoD in future
• Businesses outside DoD successful in
• Adapting to changing global environment
• Exploiting information revolution
• Structural reshaping/reorganizing
• Developing innovative processes

5
SDCFP Organization

• Two officers from each Service
• High flag/general officer potential
• O-6 or O-5
• Senior Service College credit
• Eleven months at Sponsoring Company
• Group Education
• Permanent Staff
• SDCFP Director, Admin Asst.
• Net Assessment for oversight
• National Defense University for Admin support

6
SDCFP Sponsors

• 01 - Prior
• ABB, Accenture, Agilent Technologies, AMS, Cisco,
  DirecTV, Enron, FedEx, Hewlett-Packard, Human
  Genome Sciences, Lockheed Martin, Loral, McKinsey
  Co., McDonnell Douglas, Microsoft, Mobil,
  Netscape, Oracle, Northrop Grumman,
  PricewaterhouseCoopers, Raytheon, Sarnoff, Sears,
  Southern Company, Sun Microsystems
• 01- 02
• AMS, Cisco, Merck, Oracle, United Technologies,
  3M, Sears
• 02 03
• Boeing, FedEx, Pfizer, PricewaterhouseCoopers,
  Raytheon Aerospace, Southern Company, Sun
  Microsystems

7
SDCFP Results

• Program objectives fulfilled
• Education, education, education
• More Sponsors than Fellows available
• Intra-group experience sharing
• Unique corporate experiences
• Strong corporate support
• Executive/operational level mix
• Mergers/restructuring

8
SDCFP Products

• Report and Briefings directly to SecDef, others
• Business insights relevant to DoD
  culture/operations
• Recommended process/organization changes
• Build a cadre of future leaders who
• Understand more than the profession of arms
• Understand adaptive and innovative business
  culture
• Recognize organizational and operational
  opportunities
• Understand skills required to implement change
• Will motivate innovative changes throughout
  career

9
Agenda

• Background
• Common Observations/Recommendations
• Individual Experiences (time permitting)

10
Two Different Cultures . . .

• Corporate America
• Market-centric war footing
• Bottom Line urgency drives
• change across corporation
• Ruthless advocates for business efficiency the
  customer
• Spontaneous, continuously evolving technology base

• Peacetime DOD
• Service-centric OTE footing
• Ambiguous Future restrains rapid change across
  Services
• Moral advocates for mission effectiveness the
  warrior
• Structured technology development, change by
  blocks

. . . With Best Practices to Share
11
Areas of Interest

• Organizational Agility
• Transformational Culture
• Collaborative Teaming
• The Power of Change Management
• Information Technology
• Exploiting the Web
• IT Role in Organizational Success
• Business Processes
• Leveraging Size for Spend
• Outsourcing
• Supply Chain Management
• Organizing for e-Business Transformation
• Human Capital
• Talent and Performance Management
• Efficient Employee/Customer Support

12
Organizational AgilityTransformational Culture

• Corporate America uses culture to align the work
  force
• Change and continuous improvement articulated
  as the norm
• Individual performance plans linked to efficiency
  initiatives
• Internal and external communications foster
  buy-in
• DoD should
• Develop communicate unified vision, mission,
  and goals
• Develop in coordination with Service Agency
  Heads
• Widely disseminate through all command levels
• Reinforce at every leadership contact with
  military/civilian workers
• Identify and leverage ops/business best practices
  across DoD
• Form ad hoc teams to identify and benchmark
• Develop and submit process changes

13
Organizational AgilityTransformational Culture
(Cont)

• DoD should
• Reward performance that leads to efficiency
• Tie pay/promotions/awards to specific
  accomplishments
• TSP matching Funds and/or U.S. Savings Bonds
• Permit organizations to recoup dollars saved for
  future use
• Brand DoD as an attractive industry partner
• Allow fair (market) profit that exceeds hurdle
  rate
• Share Risk--especially RD
• Streamline bid/contract processes
• Adopt industry standards more aggressively
• Financial Management
• Auditing
• Contracting

14
Organizational AgilityCollaborative Teaming

• Corporations balance power of teams with unity of
  effort
• Ad hoc teams spontaneously collaborate at all
  levels
• Teams increasingly extend outside of corporation
• DoD should
• Encourage cross-Service/Agency relationships to
  tackle issues
• Planning, Operations, Procurement
• Foster greater tolerance for out of chain
  communications
• Reward success
• Communicate clear guide stars to align teams
  with vision
• Develop network infrastructure to link teams and
  data sources
• Introduce shared change management disciplines

15
Organizational AgilityChange Management

• Corporate America driving agility/adaptability
  through formal change disciplines
• Not just old initiatives with new face (i.e. TQM)
• Common language and standardized tools
• DoD should
• Introduce a shared, formal change management
  discipline
• Six Sigma or equivalent
• Dedicated, fully resourced effort required
• Build momentum with low level demonstration
  effort
• Prospective Project - Travel Voucher Program
• Include change management in Mil/Civ Professional
  Education
• Champion and incentivize change--measure results
• Set organizational level objectives for change
• Tie individual performance plans/evals to change
  objectives

16
Information Technology (IT)Exploiting the Web

• Leading companies run their businesses over the
  Web
• Transformational cost efficiency and mission
  effectiveness
• DoD should
• Use Web for mission transactions, not just
  information
• On-line manuals for plug play weapon systems
  check out
• On-line HR for self-help administrative
  processing
• Internet auctions for purchase of common supplies
  and equipment
• Revamp the Virtual Pentagon architecture pilot
  program
• Single Pentagon IT infrastructure architecture
• Begin with e-mail networks, eliminate
  Service-unique systems
• Consolidate Pentagon IT under single joint system
• Focus on new end game processes enabled by new
  IT
• Then buy IT to support

17
Information Technology (IT)Exploiting the Web
(Cont)

• DoD should
• Migrate from client-server architecture
• Begin with common e-mail systemeasiest to do
• Re-host interactive software applications
• Demand compliance with NSTISSP No. 11 security
  requirements
• Develop more reliable, redundant system
  architecture
• Revisit best of breed mindset to minimize
  integration costs
• Phase out legacy systems as appropriate
• Incrementally adopt a web-based e-business
  software suite
• Pick the low-hanging fruit
• i-Procurement, e-Travel, web-enabled
  training/education
• Partner with IT industry to transform into an
  e-business
• Institute biometrics, consolidate databases,
  web-enable apps

SECDEF Corporate Fellows Program
18
Information Technology (IT) IT Role in
Organizational Success

• Corporate America considers IT a strategic
  spear
• A business enabler, not just automation support
• Commits a significant portion of capital spending
  
• Transforming processes and leveraging technology
• DoD should
• Embrace spiral development for IT
• Allocate share of transformation funding to IT
• Make operations and technology equal
  requirement drivers
• IT a full partner in operations planning - not an
  afterthought
• Ensure better processes requiring IT to compete
  equally for dollars
• Give CIO a vote on formal requirements panels at
  all levels
• Articulate IT vision and the road map to enable
  it
• Consider impact to IT road map when evaluating
  new weapons

19
Business Processes Outsourcing

• Corporate America divesting non core
  competencies
• Strategic Business Process Outsourcing (BPO)
  alliances
• Redirecting Capital Resources to Core
  Businesses
• DoD should
• Continue to identify core competencies at all
  levels
• Team with industry to provide non-core services
• Personnel administration
• Travel management
• Finance and accounting
• Education program administration
• Medical services (non-combat)
• Information Technology

20
Business Processes Leveraging Size for Spend

• Corporate America tackling procurement
  inefficiencies
• Only 57 of purchasing optimized (Fortune 100
  survey)
• Pooling purchases
• Partnering with small number of high-performing
  suppliers
• Better support and best price/value
• DoD should
• Fully exploit size to leverage spending for goods
  and services
• Establish more DoD-wide contracts
• Office supplies, CONUS ground transportation,
  strategic carriers, etc.
• Expand/better utilize Defense Logistics Agencys
  e-Mall portal
• Transform DLA
• From manager of supplies to manager of suppliers

21
Business Processes Leveraging Size for Spend
(Cont)

• DoD should
• Centralize purchasing authority
• Defense Logistics Agency or Defense Contract
  Management Agency
• Non-standard (i.e., Service unique) purchases if
  fiscally justifiable
• Stand up DoD-wide cost-reduction and procurement
  teams
• Move to a common, DoD-wide electronic procurement
  engine
• Greatly expand on-line auctions
• DLA (or DCMA)
• Operates and maintains
• Trains Services and Agencies
• Services and Agencies use

22
Business Processes Supply Chain Management

• Corporate America cannot beat the competition
  alone
• Strategic Alliances with their best Supply Chain
  organizations
• Supply Chain Management brings better service at
  lower costs
• DoD should
• Adjust mindset from Logistics to Supply Chain
  Management
• Single Point of Contact, e.g., Defense Logistics
  Agency
• Exercise aggressive inventory control, reduce
  redundant inventory
• Reduce cycle times
• Partner with key suppliers
• Adopt a Vendor Compliance Program
• Standards, certification, and training
• Enforcement mechanism
• Cost recovery

23
Business Processes Organizing e-Business
Transformation

• Corporations view IT as a strategic advantage
• No longer just a service provider
• CIO a full business leadership participant
• IT identifies opportunities
• DoD should
• Designate office responsible for e-Business
  transformation
• Give DoD CIO full authority to
• Set and enforce DoD-wide standards and protocols
• Approve Service IT programs (including funding)
• Develop and implement shared services e-business
  model
• Give Service CIOs funding authority for all IT
  program aspects
• Strengthen Business Initiatives Council SDCFP
  link

24
Human Capital Talent Performance Management

• Corporations raising personnel performance at all
  levels
• Performance management, training and education
• DoD should
• Target satisfactory low performers for coaching
  and mentoring
• Permit dual tracks for leaders/managers
  technical specialists
• Craft e-Learning partnerships with civilian
  education institutions
• DoD-wide programs not service specific
• Include Trades and certification programs
• Address Life after the military to enhance
  retention/recruiting
• Web-based DoD-wide placement assistance program
• marineforlife.com as model
• DoD-wide program for non-job related training and
  certification

25
Human Capital Efficient Employee/Customer Support

• Corporations embracing Shared Service Model
• Reduce redundancy, gain productivity, improve
  service
• DoD should
• Identify DoD-wide common processes fitting Shared
  Service Model
• Human resources, legal, health care, supply
  chain, IT, Finance
• Aggressively web-enable
• Minimize customization of COTS solutions
• Develop IT solutions that enable process changes
• Gain full benefit, not just smarter typewriters

26
Agenda

• Background
• Common Observations/Recommendations
• Individual Experiences (time permitting)

27
Cisco Systems, Inc.
SECDEF Corporate Fellows Program

• World leader in Internet equipment and
  utilization
• Annual revenues FY01 22.2B
• Employees 38,000 worldwide
• Pioneer using the Internet for all business
  processes
• Customer sales and support
• Production management
• Financial management
• Personnel management
• In-house, online training
• Tradition of innovation
• Creating new Internet products and key
  technologies
• Advanced routing and switching, voice and
  video-over IP, optical networking, wireless,
  storage networking, security, broadband, and
  content networking

28
Cisco Observations
SECDEF Corporate Fellows Program

• Intense organizational culture
• CEO/executive leadership/managers proactively
  build reinforce
• Core values driven into all levels provides
  focus for company
• Customer focus and corporate citizenship
• Change Management
• Constant, timely internal communications are key
• Climate built for flexibility, acceptance of
  frequent changes
• Leveraging Technology
• Cisco Employee Connection Intranet an
  invaluable resource/tool
• Internet business solutions enable huge
  productivity gains/efficiencies
• Employee Performance Management
• Frequent, scheduled, individual feedback 11s
  ingrained in calendars
• Aggressive management of bottom 10 performers
• Rewards tied to productivity

29
Recommendations
SECDEF Corporate Fellows Program

• Aggressively adopt Internet business solutions
• Build/Invest in robust network foundation
• Capitalize on power of internet capabilities
• e-Learning, Supply Chain Management, Customer
  Care, Employee Services
• Workforce optimization, productivity gains
• Build industry partnerships
• Engage consultants to benefit from leading edge
  best business practices
• Implement/Enforce strict performance management
  processes
• Critical for ensuring most productive workforce
• Establish and instill DoD innovation change
  core values
• DoD core values set foundation and climate for
  continuous improvement
• Service-specific core values remain

30
3M Company
SECDEF Corporate Fellows Program

• Diversified manufacturing company
• Annual revenues 17B
• Employees 75,000 (38,000 US 37,000
  International)
• Major Market Centers spanning 55,000 products and
  200 countries
• Industrial ? Specialty Material
• Consumer Office ? Transportation, Graphics
  Safety
• Health Care ? Electronics Communications
• Innovation is both legacy and lifeblood
• 30 of annual revenues from products less than 4
  years old
• Century Anniversary in 2002 marked enduring
  success
• Only 3 of companies survive 100 years
• 3M on the move New CEO, GE-proven initiatives,
  Six Sigma

31
3M Observations
SECDEF Corporate Fellows Program

• Strong outsider CEO successfully leading change
• Crystal clear goals from former GE executive
• Razor-sharp accountability
• Headlong implementation of Six Sigma driving
  results
• Common language, established channels, measured
  performance
• Ad hoc work groups and teams powered by
  electronic networking
• Seamless data sharing and resource scheduling
• Well-developed intranet for business admin and
  training
• Relentless corporate pressure to cut costs of
  business
• Hold business Win cost savings ? Grow
  business with savings
• DoD Hold budget Optimize mission results
  within given dollars

32
3M Observations
SECDEF Corporate Fellows Program

• Aggressive initiatives to optimize spend for
  goods services
• Improved discipline, pool purchases, dual
  sources, competition
• Saved 166M in first year on target for 500M by
  2003
• Centrally managed Corporate Identity Strategy
  and Standards
• Careful orchestration of vision, key messages,
  values and alliances
• 3M highly respected for its quality, trust and
  innovation
• RD reticent to cater to Govt consumer without
  commercial payback
• Why TBD
• 3Ms commercial culture?
• Fall out from past work with Government?
• Heartwarming response support for military
  after 9/11
• But generally ill-informed on the most basic
  military concepts

33
Recommendations
SECDEF Corporate Fellows Program

• Deploy a DoD change discipline similar to Six
  Sigma
• Beware superficially applied, under-resourced
  quality program
• Use corporate electronic productivity model where
  smart
• DoD lags in areas ripe for networking admin,
  training, personnel
• Continue to push cost-cutting as daily priority
  in DoD
• Profit-driven and efficient corporations still
  finding 100Ms
• Exploit DoDs size to leverage spending
• Global sourcing teams, supplier relationships,
  e-Purchasing
• Refine DOD Identity in light of corporate
  successes
• What images are invoked when people hear DOD?

34
Merck Company, Inc.

• Global research-driven pharmaceutical company -
  2d largest in U.S.
• Employees 69,300 (60 U.S.)
• Revenues gt 40 B
• Locations 70 countries, 31 plants, 16
  distribution centers
• One of five major players in vaccine development
• 20 of worldwide market 1B in sales
• Corporate Strategy
• Focus on cutting-edge science, targeted and
  well-executed marketing, continued operational
  excellence
• 2002 a transition year to a new platform of
  opportunities
• Increase research spending in 2002 to 2.9 B (up
  from 2.5B)
• File or launch 11 new medicines and vaccines,
  2002 to 2006

35
Merck Observations

• Among top 50 most respected companies worldwide
  (PWC, 2001)
• Ethics is a competitive advantage.
• Litmus test for all decisions ? ...medicine is
  for the people. ... The profits follow...,
  George W. Merck (1950)
• Adapting to Changing Environment
• Position at leading edge of science is critical
• talent management
• external partnering/acquisition
• exploiting the web
• Cross-functional strategy teams break down silos
• Exploiting the web for communications and
  training
• Moving to self-service and new performance
  management system
• significant culture change throughout the company
  

36
Recommendations

• Positive branding for DoD
• Brand DoD just as each Service is branded
• Partner with Industry/ Corporate America
• ID core competencies and focus on them
• Understand and take advantage of civilian sector
  capabilities
• Use Six Sigma across DoD
• Benchmark processes internal and external to DoD
• ID critical common processes
• Make them efficient and standardized
• Dedicated, fully resourced effort required

37
United Technologies
SECDEF Corporate Fellows Program

• Diverse major businesses with common customers
• - Pratt Whitney - Carrier - Otis
• - Sikorsky - Hamilton Sundstrand - UTC Fuel
  Cells
• Fortunes Most Admired aerospace company
• 154,000 employees (80,000 overseas)
• Revenues 28B
• Assignment PWs F135 Joint Strike Fighter
  Engine Program
• Integrated Program Management Team
• Engineering Manufacturing Development (EMD)
  Readiness
• System Development Deployment (SDD)
  Implementation
• Integrated Product Team (IPT) Leaders Training
  Program
• Achieving Competitive Excellence (ACE) Initiative
  Team
• High Impact ACE Team (Sourcing Parts Family
  Strategies)

38
Pratt Whitney Observations
SECDEF Corporate Fellows Program

• Corporate Strategy
• Clear simply stated end state and bridge
  articulated
• Competitive advantages understood
• Focus on core competencies outsourcing non-core
• Growth aspirations linked to extensions of core
  competencies
• Leverages operational capability to change the
  game
• Culture
• Lean Thinking ACE permeate all facets of
  company
• Constant change is a way of life
• Willingness to stretch the limit
• Merged companies drawn into parent philosophy

39
Pratt Whitney Observations
SECDEF Corporate Fellows Program

• Architecture Processes
• Empowerment/accountability at lowest levels
• Supply base consolidation
• Integrated Program Deployment implementation
• Execution
• Education
• Scorecards
• UTC coordinated Leadership Councils
• Corporate Analysis
• McKinsey Co. and Dupont
• Electronic Work Instructions

40
Recommendations
SECDEF Corporate Fellows Program

• ACE application of Lean Tools
• Concept Removal of waste enhance flow (info,
  product, cash)
• Apply principles at operational levels
• Performance Management Process
• Concept Individual Development Plans (IDP)
  products of PM
• Apply at operational levels
• Education Programs
• Concept No contract/service obligation (tied
  into IDP)
• Apply across DoD (one standard, DoD-wide)
• Life after Military Service
• Concept Civilian employee assistance
• Apply across DoD (Military.com equivalent)

41
Sears Logistics Services, Inc.
SECDEF Corporate Fellows Program

• Wholly-owned subsidiary of Sears, Roebuck and Co.
  
• Responsible for all logistical activities in the
  Sears supply chain
• Employees 13,500
• Operating Budget gt1.5 B
• 31 Distribution centers nationwide (Avg 1M Sq
  Ft/facility)
• Home Deliveries gt5,000,000 annually nationwide
• Average Inventory Value gt600,000,000
• Moves goods from 4,500 vendors to 2000 stores

42
Sears Logistics Services Observations
Caterpillar Inc. Observations
SECDEF Corporate Fellows Program

• Sears SLS undergoing significant change
• Moving from silos to enterprise-wide approach
• Robust change management/leadership program
• Business strategy with quantifiable objectives
• Customer centric
• Improve productivity and returns
• Drive profitable growth
• Develop diverse high performance team
• Global Net Exchange System (GNX) - using the
  internet for auctions
• Purchase retail items for manufacture and resale
• Sales Volume in Excess of 240M more than 40M
  saved to date
• Liquidate liability inventory (increased cost
  recovery)
• Purchase supplies for home office use and
  remodeling
• Partner with Michelin to test collaborative
  planning and forecasting

43
Sears Logistics Services Observations
Caterpillar Inc. Observations
SECDEF Corporate Fellows Program

• Vendor relations
• Adopted industry standards
• Electronic Data Interchange (EDI)
• Compliance program with standards and
  charge-backs
• Cost recoveries in excess of 40 million
• Information Technologies
• Wide range of legacy systems
• Building bridges vice developing new systems
• Training
• Continuous process
• Moving to increased web-based format
• Cross training associates - improves company wide
  perspective
• Supply Chain management
• Improved efficiencies (especially transportation)
• Lower/controlled inventories
• Improved cycle times

44
Recommendations
SECDEF Corporate Fellows Program

• Exploit the Internet
• Purchase of non-defense-specific products
• Liquidate old/inoperative/scrap supplies and
  equipment
• Training
• Collaborative planning
• Adopt a Vendor Compliance Program
• Standards/Vendor Certification and Training
• Enforcement mechanism
• Cost recovery
• Adjust mindset from Logistics to Supply Chain
  Management
• Inventory control/reduce redundant inventory
• Reduce cycle times
• Partner with key suppliers
• Adopt accepted industry standards

45
Oracle Corporation
SECDEF Corporate Fellows Program

• Twenty-fifth Anniversary in 2002
• 1977 outgrowth of a CIA project
• Worlds second largest independent software
  company
• Employees 43,000 (21,000 US 22,000
  International)
• Revenues gt10B year
• Worlds premier provider of database software
• 42.9 of the market
• 75 of DoD systems use Oracle database software
• Second largest provider of e-business application
  software
• Sales of 447M exceed competitors SAP, Siebel and
  Peoplesoft
• Two significant transformations in seven years
• From niche data base provider to software
  solutions provider
• From client-server products to web-enabled
  products
• Implemented own software across organization

46
Oracle Observations
ABB GROUP
SECDEF Corporate Fellows Program

• The 1B Savings Story confirmed by Booz-Allen
• Eye-watering technology reduced tooth to tail
• Efficiency up ? workforce down ? operating
  margins up
• Focused to become an e-business
• Servers and processes consolidation (not just
  e-mail)
• Business practices and processes standardization
• Using proprietary software
• Reliance on self-service mentality
• Shared services paradigm enhances productivity
• e-Travel, HR, education/training, procurement
• Self-service is liberating
• Transformations successful because of leadership
• Benevolent Dictator

47
Recommendations
SECDEF Corporate Fellows Program

• Implement ASD(C3I) (ODITC) Virtual Pentagon
  Initiative
• Consolidate Pentagon IT under single joint
  organization
• Single Pentagon IT infrastructure architecture
• Migrate away from client-server architecture
• Leverage the web begin with e-maileasiest to do
• Re-host interactive software applications
• Secure, reliable, redundant architecture IAW
  NSTISSP No 11
• Revisit best of breed mindset to minimize
  integration costs
• Phase out legacy systems
• Incremental adoption of web-based e-business
  software suite
• Accelerate easy to do, low-hanging fruit
• Common financial system, i-Procurement, e-Travel,
  web-enabled training/education
• Move DoD toward a full e-business architecture

48
Recommendations (Cont)

• Web-based education for recurring training
• Cyber seminars, routine training, real-time
  senior leader video presentations
• Benchmark Oracles robust programs
• Stay the course on acquisition reform
• Industry can help
• Make the rules work for high speed technology
  insertion
• Partner with IT industry to quickly transform DoD
  to an e-business
• Renewed industry patriotism
• e-business methodology works for Homeland
  Security
• Biometrics, consolidated databases, web-enable
  applications

49
AMS, Inc.

• International business and information technology
  consulting
• One of 20 largest international business/IT
  consulting firms
• Headquartered in Fairfax, Virginia
• 7,000 employees, 49 offices worldwide
• 2001 revenues 1.2 Billion
• 30 consecutive years of growth
• Market Presence
• Recognized Industry Leader
• One of Fortune Top 50 Best Companies to Work
  For
• Forbes Platinum 400 Company

• Media Communications
• Health Care Utilities

• Finance Services
• Federal Government
• State Local Government

50
AMSObservations

• A company in the midst of transformation
• Present business model under review
• Loose conglomerate of autonomous business units
  less successful now
• Greater Corporate involvement
• New CEO appointed
• An outsider
• Focus now more on growth through acquisition
• Branding Problem
• Corporate image tarnished by high profile law
  suits
• Maintaining a technically competent workforce
• Forming strategic partnerships to augment

51
AMSObservations

• Increased core markets competition
• DoD, Federal, and State business space more
  attractive
• Leveraging experience, customer familiarity to
  maintain advantage
• Business Joint
• Companys strengths weaknesses recognized
• Developing permanent and/or interim partnership
  to address
• Leveraging technology ensures company-wide info
  access
• Common tools for Project Management
• Robust Best Practices data base no PM needs
  to go it alone
• Consolidation of Common Services
• Business Unit-specific IT/HR/Admin Support
  removed

52
AMSRecommendations

• Aggressive pursue use of Knowledge Management
  systems throughout DoD
• Maintains knowledge in house, impact of turnover
  lessened
• KM more than technology good Change Management
  program is critical to KM acceptance/success
• Accelerate acquisition reform pace
• Allows government to fully leverage competition
• Mitigates risk for industry participants
• Continue incremental fielding for
  technology/products
• Gets capability to the warfighter quicker the
  80 solution works
• Benefits apply to software weapons systems
  alike
• Continues development while providing capability
  in the field.
• Common Services Model works
• Potential savings can be realized consolidating
  Service specific common functions