1. Going Out of Business Plan
Spending vs Force Structure
This is a picture of an enterprise that if left unattended shows a going out of business plan. And this is where Navy was heading in the mid 90s.. Even though the number of ships were declining, our costs were going up. This is the “tired Iron” death spiral – aging ships, aircraft and facilities are more costly to maintain, and these increased operating and support costs have traditionally come from our recapitalization accounts. In other words, we were were cashing in our future by paying for the here and now.

2. Sea Enterprise Transforming Navy Logistics SEA ENTERPRISE
Knowledge Enabled Logistics
Sea Power 21
Joint Vision 2020
Enterprise Resource Planning
Virtual Systems Command
Performance Based Logistics
Shipyard Transformation
Strategic Sourcing
Integrated Readiness Capabilities
Assessment
AirSpeed
SEA
ENTERPRISE
Improve the Navy “business operations” effectiveness and efficiency to free resources for the 21st century Navy.
Legacy System Rationalization
NMCI
eBusiness
Claimant Consolidation
Productive Ratios
NAVSUP Transformation
NAVFAC Transformation
This shows you the results we are getting from Sea Enterprise. Examples of those initiatives – and granted some were already works in progress – are shown on the right and left hand sides.
For POM 06, the claimants were given Intelligent Targets – that is OPANV told them how much money they had to operate with rather than have the claimants come in and say how much they needed. In order for the claimants to live within their targets, they came in with over 400 initiatives showing positive Return on Investment, improved business processes and streamlining to provide improved capabilities
When, and if, executed, these initiatives should result in approximately $40B in harvestable savings across the FYDP that can be put towards navy recapitalization.
Earlier than 18 months ago we realized that we needed to get operations and support spending under control. Thanks to Sea Enterprise, we believe we know have a strategic view of O $ M dollars; we understand where the money is and we are starting to harvest the saving.
Tactics & Tools for Execution
Senior leadership engagement in execution
Challenge every cost, requirement, and assumption
Aggressive divestment of non-core functions
Accelerate transformation
Minimize acquisition and life cycle costs
Streamline organizations… expand inter-organizational collaboration
Consolidate redundant efforts
Divest under-performing or unnecessary products, services and capacity
Align processes
Minimize manpower costs
Outcome/performance based metrics
Leverage Technology
Encourage innovation, challenge barriers