GAO-06-234T Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation

Although DOD has made progress toward establishing a management framework for overall business transformation, the framework currently focuses on business systems modernization and does not fully address broader business transformation efforts. In 2005, DOD set up the Defense Business Systems Management Committee to review and approve the business enterprise architecture a transformation blueprint and new business systems modernization investments. It also established the Business Transformation Agency, which currently reports to the Vice Chair of the Defense Business Systems Management Committee, to coordinate and lead business transformation across the department. Despite these steps, DOD has not clearly defined or institutionalized interrelationships, roles and responsibilities, or accountability for establishing a management framework for overall business transformation. For example, differences of opinion exist within DOD about the roles of various senior leadership committees. Until DOD's business transformation management framework is institutionalized and encompasses broad responsibilities for all aspects of business transformation, it will be challenging for DOD to integrate related initiatives into a sustainable, enterprise-wide approach to successfully resolve weaknesses in business operations that GAO has shown are at high risk of waste, fraud, and abuse.

The DoD has had long-standing, serious problems with its numerous military component-unique personnel and pay systems. To address these problems, in 1998, DoD initiated a program to design and implement the Defense Integrated Military Human Resources System, which will provide a joint, integrated, standardized personnel and pay system for all acting and reserve military components. However, some Army Reserve and National Guard troops continued to receive inaccurate pay. Furthermore, problems have been exacerbated by military personnel deployed to Iraq and Afghanistan, whose families depend on receiving accurate and timely pay. This review focuses on DoD¿s plans to deliver the system to the Army for deployment. Charts and tables.