1. BMMP DoD’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

2. BMMP 2 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 Agenda

3. BMMP 3 Background 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 DoD established the Business Management Modernization Program

4. BMMP 4 What is Business Management Modernization? Business Management Modernization is a DoD-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 DoD’s business processes & providing good information; systems simply implement these improvements)

5. BMMP 5 Mission - Business Management Modernization Program  S upport the Warfighter through world-class business operations BMMP will help DoD 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 DoD Business Transformation

6. BMMP 6 BMMP Goals and Objectives Goal 1: Provide accurate, reliable, and timely information for Business Management Objective 1.1 Achieve unqualified audit opinion on consolidated DoD financial statements Objective 1.2 Achieve total asset visibility Objective 1.3 Achieve total personnel visibility Manage DoD’s business transformation investments Objective 1.4 Adopt the Business Enterprise Architecture (BEA) planning decision and control process that manages DoD 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 DoD business operations

7. BMMP 7 Example of Metrics: Goals, Objectives and Measures DRAFT Goal 1. Provide Timely, Accurate, Reliable Information for Business Management 1.1By 2007, achieve unqualified audit opinion on consolidated DoD financial statements M1.1.1Number of material weaknesses eliminated M1.2.1Confirmed asset inventory and valuation M1.2.2Data accuracy of in-transit assets M1.4.1Percent of business information that is updated at a rate sufficient to meet the information recording threshold (Note 1) M1.4.2Percent of business information accessible by DoD decisionmakers within the information response time threshold (Note 1) 1.3 By 2007, achieve total personnel visibility to include: military service members, civilian employees, DoD retirees, and DoD contractors M1.3.1Confirmed personnel inventory and tracking M1.3.2Accuracy of In-transit visibility of personnel Objective Measured By: 1.2 By 2007, achieve total asset visibility and accurate valuation of property, plant and equipment, to include real property; military equipment; internal use software; personal property, and property in possession of contractors 1.4By 2007, provide DoD decisionmakers timely access to business information Note 1:Information recording and information response time thresholds will be defined for each major category of business information (e.g., fund balance)

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

9. BMMP 9 Strategic View IOC 2008 Increment Focus Increment 1 Unqualified Opinion – FY07 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, Budgeting & Execution Increment 3 (Proposed) Combined Human Resource Management Integrated Performance Management Reporting Increment 3 Increment 1 Increment 2 2007 2009 2010 2002-2006 Prototype DoD Solutions Develop Architecture Deploy DoD Solutions 2004-2008 2005-2010 Incremental approach with emphasis on continuous improvement Continuous Improvement

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

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

12. BMMP 12 We Want to Hear from You 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

13. BMMP To support the Warfighter with world-class business operations