Defense Business Transformation: DOD Has Taken Some Steps to Address Weaknesses, but Additional Actions Are Needed

Abstract : DOD spends billions of dollars each year to maintain key business functions intended to support the warfighter. While DOD maintains military forces with unparalleled capabilities, it continues to confront decades-old management weaknesses related to its business functions that support these forces. GAO designated DOD's approach to business transformation as high-risk in 2005 because DOD had not taken steps to achieve and sustain business reform on a strategic, department-wide basis. This report identifies the extent to which (1) DOD has addressed business transformation weaknesses and (2) the Office of the DCMO has effectively monitored the progress of its business transformation efforts. GAO reviewed documentation, such as DOD's Fiscal Year 2014-2015 Strategic Management Plan and performance measures established for its business functions. GAO also interviewed officials responsible for DOD's business transformation efforts. GAO recommends that the CMO and DCMO document and communicate priorities for DOD's business transformation efforts and oversee the development of a correction action plan. GAO also recommends that the DCMO develop clear and comprehensive performance measures that are aligned with strategic goals to monitor the progress of its business transformation efforts. DOD concurred with GAO's recommendations.