1. Institutional Strategic Planning: Why the Army Needs Them LTC Lee Pearce Office of Business Transformation Office of the Under Secretary of the Army December 4, 2015

2. What if? What if there was a large Fortune Top 20 organization with annual revenue of over $120 billion a year that: was more concerned about its rate of expenditures, than what they were getting for their spending? was reluctant to establish metrics of effectiveness or efficiency when faced with a shortage of resources, often cut the funding for their core products first? didn’t understand what their end-to-end costs were for their major processes? had a limited understanding of its internal IT systems and their shortcomings and overlap with other systems? What if that organization was the US Army? You might suppose it would eventually go bankrupt… avoided making hard organizational design changes 2

3.  Annual funding in excess of $120 billion per year  Sixth in size, behind Apple  More students than largest five colleges in the U.S.  Real property holdings  Energy production similar to a mid-size U.S. city (Tampa)  Spent over $2.4B in FY15 for business IT systems alone  Fleet of vehicles larger than UPS and Federal Express combined  Organic in-sourced services The Institutional Army How does the Army better plan to tackle these issues…? What are these functions?  Title 10  End to End Processes 3

4. Institutional Strategic Planning differs from large-scale operational planning 4

5. Joint Operation Planning Process The Army Plan MDMP NMS Numbered War Plans Institutional Strategic Planning differs from large-scale operational planning Is this sufficient …? 4

6. Sets clear goals and objectives. Cost-informed that balances efficiencies and effectiveness. Synchronizes planning across organizations. Observable and measurable, while allowing flexibility for learning and adapting. Leads to operational readiness. Key tenets for Institutional Strategic Planning 5

7. Officer Education –Force Development –Force Management –PPBE –Acquisition –PMP, LSS, CPI Army Business Strategy –Goals –Objectives –Action Plans How do we promote Institutional Strategic Planning throughout the Army 6

8. The Institutional Army must have a strategic plan that supports readiness! Bottom Line 7

9. Back-up 8

10. Trained and Ready Forces for COCOMs End to End Business Processes 10 Planning Programming Budgeting Execution Budget to Report FORCE GENERATION (SRM) Deploy to Redeploy / Retrograde FORCE MANAGEMENT SERVICE REQUEST TO RESOLUTION COST MANAGMENT ENVIRONMENTAL LIABILITIES PROCURE TO PAY PROPOSAL TO REWARD SERVICE TO SATISFACTION PROSPECT TO ORDER ORDER TO CASH MARKET TO PROSPECT HIRE TO RETIRE PLAN TO STOCK ACQUIRE TO RETIRE CONCEPT TO PRODUCT Maintenance Inventory Mgt Service Contracts Equipping FMS Manning Recruiting Audit Controls Contracting Grants S&T Primary Supporting Connection Lower Supporting Connection Financial Management 9

11. Trained and Ready Forces for COCOMs End to End (E2E) Business Process Relationships 11 Deploy to Redeploy / Retrograde (D2RR) FORCE GENERATION (SRM) Budget to Report FORCE MANAGEMENT SERVICE REQUEST TO RESOLUTION COST MANAGMENT PROCURE TO PAY PROPOSAL TO REWARD SERVICE TO SATISFACTION PLAN TO STOCK ACQUIRE TO RETIRE CONCEPT TO PRODUCT Maintenance Inventory Mgt Service Contracts Equipping Contracting Grants S&T Audit Controls Primary Supporting Connection Lower Supporting Connection Financial Management ORDER TO CASH PROSPECT TO ORDER MARKET TO PROSPECT HIRE TO RETIRE ENVIRONMENTAL LIABILITIES Manning Recruiting FMS Planning Programming Budgeting Execution 10

12. Army Business Strategy 12 11

13. WMA DIMA EIEMA BMA BMA: Business Mission Area WMA: Warfighting Mission Area DIMA: Defense Intelligence Mission Area EIEMA: Enterprise Information Environment Mission Area H2O Food Bullets Fuel 12