BMMP Do Ds Business Management Modernization Overview and

BMMP Do. D’s Business Management Modernization Overview and Update to ASMC Marilyn Fleming, Deputy Director, Enterprise Architecture Business Modernization and Systems Integration OUSD(C) November 12, 2003

Agenda BMMP Background What is Business Management Modernization? The Mission and Vision Goals and Objectives Metrics The Strategy – Our Plan The Strategic View Impact The Enterprise View of Business Transformation 2

Background BMMP • Friedman Report – “Transforming Department of Defense Financial Management” • Lack of Overarching Approach to Financial Management • Overly Complex Data Requirements • Convoluted Business Processes • Inability to Produce Reliable Annual Financial Statements • As a result Do. D established the Business Management Modernization Program 3

What is Business Management Modernization? BMMP Business Management Modernization is a Do. D-wide initiative to: - Streamline and transform business processes -Provide timely, accurate and reliable information for decisions - Enable and integrate information systems using common processes and portfolio management What Business Management Modernization is not: - Just a Finance and Accounting effort - Just a ‘systems’ effort (focus is on transforming Do. D’s business processes & providing good information; systems simply implement these improvements) 4

Business Transformation BMMP Mission - Business Management Modernization Program Ø Support the Warfighter through world-class business operations BMMP will help Do. D to achieve its vision - Manage its support operations in an efficient, business-like manner, thus optimizing the combat support infrastructure - Deliver resources to the Warfighter using the most effective business processes - Provide accurate, reliable and timely financial information, affirmed by unqualified audit opinions, to decision makers at all levels of Do. D 5

BMMP Goals and Objectives BMMP Goal 1: Provide accurate, reliable, and timely information for Business Management Objective 1. 1 Achieve unqualified audit opinion on consolidated Do. D financial statements Objective 1. 2 Achieve total asset visibility Objective 1. 3 Achieve total personnel visibility Manage Do. D’s business transformation investments Objective 1. 4 Adopt the Business Enterprise Architecture (BEA) planning decision and control process that manages Do. D Business Operations Goal 2: Enable improved Business Operations Objective 2. 1 Adopt the BEA for acquiring, managing, and providing material and human assets in support of the Warfighter Objective 2. 2 Systematically improve the efficiency of Do. D business operations 6

Example of Metrics: Goals, Objectives and Measures BMMP Goal 1. Provide Timely, Accurate, Reliable Information for Business Management Objective 1. 1 By 2007, achieve unqualified audit opinion on consolidated Do. D financial statements Measured By: M 1. 1. 1 Number of material weaknesses eliminated 1. 2 By 2007, achieve total asset visibility and accurate M 1. 2. 1 Confirmed asset inventory and valuation of property, plant and equipment, to M 1. 2. 2 Data accuracy of in-transit assets include real property; military equipment; internal use software; personal property, and property in possession of contractors 1. 3 By 2007, achieve total personnel visibility to include: military service members, civilian employees, Do. D retirees, and Do. D contractors 1. 4 By 2007, provide Do. D decisionmakers timely access to business information M 1. 3. 1 Confirmed personnel inventory and tracking M 1. 3. 2 Accuracy of In-transit visibility of personnel M 1. 4. 1 Percent of business information that is updated at a rate sufficient to meet the information recording threshold (Note 1) M 1. 4. 2 Percent of business information accessible by Do. D decisionmakers within the information response time threshold (Note 1) Note 1: Information recording and information response time thresholds will be defined for each major category of business information (e. g. , fund balance) DRAFT 7

Strategy for Business Transformation BMMP • Develop Do. D-wide BEA and governance methodology, • Reengineer processes using an incremental approach, • Use portfolio management to determine information technology investments • Test and implement systems solutions 8

Strategic View BMMP Incremental approach with emphasis on continuous improvement Increment Focus 2002 -2006 2004 -2008 Develop Architecture Prototype Do. D Solutions Increment 1 2005 -2010 Deploy Do. D Solutions 2007 Increment 2 Increment 3 Continuous Improvement 2009 2010 • Increment 1 Unqualified Opinion – FY 07 Financial Statements • Unqualified Audit Opinion (2007) • Plan, Procure, Pay • Asset Accountability • Resolve Material Weaknesses • Other Personnel, Acquisition and TI Improvements • Increment 2 (Proposed) • Integrated Planning, Programming, IOC 2008 Budgeting & Execution • Increment 3 (Proposed) • Combined Human Resource Management • Integrated Performance Management Reporting 9

Impact BMMP Portfolio Management • Comptroller review of Business Systems • Compliance with Business Enterprise Architecture Business Process Reengineering – Logistics – Acquisition – Accounting and Finance – Human Resources Management – Installations and Environment – Strategic Planning and Budgeting –Net Centric Enterprise Services BMMP Increments 1, 2, & 3 • Common business processes • Net Centric Data • Integrated systems • Enable optimal warfighter support Performance Metrics 10

The Enterprise View of Business Transformation BMMP Enterprise transformation requires balancing between the needs of individual business units and needs of the enterprise Enabling Threads Technical Infrastructure Installations & Environment Strategic Planning & Budgeting Accounting and Finance Human Resources Management Acquisition Logistics Warfighter Requirements Army Navy Air Force Improved Business Operations Defense Agencies Standard Technology and Data Enterprise Integration 11

We Want to Hear from You BMMP • Visit the program website at http: //www. dod. mil/comptroller/bmmp/ • Submit questions and comments from the website or send a message to askbmmp@dfas. mil 12

BMMP To support the Warfighter with world-class business operations