March 2004 Newsletter



American Society of Military Comptrollers

Washington Chapter Newsletter

P.O. Box 776 Washington, DC 2004

Five Star Chapter

March 2004

Captain George Asseng

President, ASMC Washington Chapter

I’d like to welcome everyone to this year’s exciting program “Sustaining Transformation.” Wayne Ebaugh and his committee outdid themselves this year. We have a great day of learning, recognition and enjoyment for you.

The word transformation means a complete change with an improved appearance or usefulness. Our panelists and speakers can certainly attest to their role in this. We’ll hear from folks modernizing one of the largest financial management systems in the world, assisting in setting up the infrastructure of a new government and overhauling the personnel systems that have been around for decades. A common theme today is that ASMC members are heavily involved in these and many other transformational efforts.

Please enjoy today’s program along with the many exhibits that are in our exhibit hall. This is ASMC at its best!

“SUSTAINING TRANSFORMATION”

0700 - 0800 Continental Breakfast

0800 - 0810 Opening Ceremony

Remarks: George Asseng, Captain USCG, Washington Chapter President

Presentation of Colors

National Anthem

Invocation, Reverend Ireathea J. Hill, Ebenezer Baptist Church, Occoquan, VA

0810 - 0815 Introduction of Keynote Speaker

By George Asseng, Captain USCG

0815 - 0915 Keynote Speaker The Honorable Dov S.

Zakheim, Under Secretary of Defense (Comptroller)/Chief Financial Officer

0915 - 0930 Break, Sponsored by Booz Allen Hamilton

0930 - 1045 Business Modernization and Systems

Integration (BMSI)

Elizabeth (Beth) McGrath, Deputy Director

1045 - 1230 Sustaining Transformation, a Corporate

Perspective

Rob Fitzgerald, Executive Director Defense Programs, Defense Enterprise Solutions, Northrop Grumman IT

Beth A. Ewing, CCM, Relationship Manager, Federal Government Banking Division, Vice President, Global Government Group, Bank of America

Richard P. (Gus) Gustafson, Associate Deputy Assistant Secretary for Financial Operations and Technology, Office of the Assistant Secretary for Financial Management and Comptroller, Headquarters U.S. Air Force

Norwood J. (Woody) Jackson, Jr., Managing Director, KPMG LLP

1230 - 1345 Luncheon

Luncheon Speaker: Al Runnels, CFO, Coalition Provisional Authority, Iraq

Topic: Transformation in Iraq

1345 - 1435 Transformation of DoD and DHS Personnel

Systems Panel Discussion

Ms. Ginger Groeber, OUSD, Personnel and Readiness, Civilian Personnel Policy

Ms. Kay Frances Dolan, Department of

Homeland Security

Mr. John Gage, AFGE President

Panel Moderator; Mr. Mike Causey, Federal

News Radio

1435 - 1450 Break

1450 - 1620 Breakout Sessions:

Lean Thinking/Six Sigma, Mr. Jack Rouch, Acting Director, DFAS Internal Review

CDFM Training, Mr. Richard J. Arns, CDFM Instructor, USDA

1620 – 1630 Closing Remarks and Announce Raffle

Winners

CHAPTER NEWS

CDFM Certification:

Claudia Maria Benoit

Terrance Ray McNinch

Jacqueline Renee Melton

Phillip Todd Nethery

Christopher Gerard Rose

Chapter Rebate: To encourage junior member attendance at the monthly luncheons all Enlisted personnel, Officers O-3 and below, and GS-11 and below will be given a $7 instant cash rebate towards the luncheon price. This is a trial. To evaluate the success of this trial a survey will be distributed to the junior members at each luncheon in Feb and April.

Community Service: Did you know our chapter will be sponsoring an “English as a Second Language” course in the Pentagon to assist the Pentagon cleaning staff? Stay tuned Clara Weston; Community Service Chairperson is the point of contact (703) 692-7866.

In addition, we are joining in the community service project that the Association of Government Accountants organized in conjunction with the Mt. Vernon Chapter of ASMC and the Alexandria Chapter of the American Red Cross. We will be providing “Presents for Patients.” When service personnel are injured in our wars, especially in Iraq and Afghanistan and flown to either Walter Reed or Bethesda Naval hospitals, they do not get to bring their personal belongings with them. So we will be collecting the following items or anything that compares to them: telephone cards, note cards & stamps, disposable cameras, and electric razors. Items need to be new.

Business Management Modernization Program (BMMP)

With over $1 trillion in assets, an annual budget of about $400 billion and over 3 million military and civilian employees, the Department of Defense (DoD) is the world's largest and most diversified enterprise. Efficient and effective management of business and financial activities plays a decisive role in DoD's ability to perform its national security mission. Because the current business environment is inefficient, the Secretary of Defense established the Business Management Modernization Program (BMMP) in July 2001 to guide concurrent transformation of all business activities within DoD.

BMMP is an initiative that encompasses the policies, processes, people, and systems, which guide, perform, or support all aspects of business management within DoD. BMMP will enable the department to ensure that its service people have what they need when they need it and at an optimal cost.

History of the Program

Over the years, the Department initiated many efforts to modernize and transform business operations. In the past, the Department tailored efforts to a single Component or business practice, which often resulted in poorly integrated and stove-piped systems and processes. With respect to the broader DoD mission, scholars have referenced a number of case studies and reports identifying poorly coordinated, stove-piped military operations as the key reason for passage of the Goldwater-Nichols Act, which directed a shift toward joint operations within the Department. Although the Goldwater-Nichols Act is still reverberating throughout the Department - and challenges remain – there is an unprecedented degree of cooperation in military operations today.

In many respects, the 2001 report to the Secretary of Defense titled “Transforming the Department of Defense Financial Management, a Strategy for Change” (the “Friedman Report”) reached similar conclusions about DoD business and financial management practices (i.e., they are stove-piped and poorly integrated). As a result of that report, Secretary Rumsfeld chartered the Financial Management Modernization Program, later renamed the Business Management Modernization Program, to fix long-standing problems in DoD business and financial management processes. In establishing the BMMP, Secretary Rumsfeld set business operations on an unprecedented course towards cross-functional and cross-organizational cooperation. In many respects, this approach parallels (and supports) the joint operations concept used by the Unified Combatant Commanders to ensure integrated operations among the Military Services.

Further, this report, conducted by the Institute for Defense Analyses (IDA), outlined the systemic problem of the Department and recommended a strategy for financial management improvements. The study revealed these problems in the DoD environment:

• Inability to provide reliable financial and managerial data for effective decision-making;

• Convoluted business processes that fail to streamline activities; and

• Disparate systems hampered by lack of integration and standardization.

Based on IDA’s recommendations, the Secretary of Defense Donald Rumsfeld instituted an enterprise-wide transformation program to achieve the following goals:

• Expend fewer resources on business processes and systems;

• Ensure that men and women in uniform have the business information they need when they need it; and

• Inform Congress and the public, with confidence, of where we spend resources within the Department of Defense.

Thus, the focus of BMMP is to develop a DoD-wide Business Enterprise Architecture (BEA) that will ensure compliance with appropriate laws, regulations, policies, and standards. The BEA is a result of taking an enterprise view of standard, integrated business processes and systems technology capabilities.

Recognizing that fundamental business management functions are similar across the Services and Defense Agencies, created the opportunity to rationalize business processes and integrate systems. The efficiency gained through this effort will enable the department to eliminate redundant activities and systems and redirect millions of dollars in support of national security and other Department priorities.

In support of this effort, the BMMP attempts to achieve these goals through the following strategy:

• Build and extend a business enterprise architecture;

• Establish an agency-wide governance process;

• Reduce or eliminate redundant, outdated, and stove-piped systems using a compliance assessment and portfolio management process;

• Reengineer the Department’s business processes using an incremental approach; and

• Test and Implement systems solutions.

Full implementation of this strategy will allow the Department to comply with Federal accounting and financial management reporting requirements, especially those mandated by the Federal Financial Management Improvement Act of 1996. It also provides an approach that leads to the integration of budget, accounting, and program information and systems. Through this strategy, the DoD will have in place the robust framework necessary to evaluate future business and finance-related Information Technology (IT) and process investments.

Organization

BMMP, as a program, is comprised of a number of elements such as Domains, the Executive and Steering Committees, and the program management office, Business Modernization and Systems Integration (BMSI). The Governance Model, detailed later in this article, outlines these groups and their respective roles and responsibilities. However, there is often confusion over the roles of BMMP and BMSI and how they relate to one another. The following is a definition of these elements:

BMMP is a Department of Defense program to integrate and transform financial management and business operations into a joint business enterprise. BMMP includes business process owners (domains), the armed services and a program management office known as BMSI. The BMMP program manager is responsible for working with all BMMP stakeholders to facilitate business transformation. The Under Secretary of Defense Comptroller in coordination with the Under Secretary of Defense for Acquisition, Technology and Logistics and the Department of Defense Chief Information Officer (DOD CIO) provide strategic direction to BMMP.

BMSI is the program management office responsible for coordinating business transformation efforts across the department. It is a part of BMMP. BMSI is responsible for working with business process owners (domains) to establish and maintain: (a) program Governance, (b) Business Enterprise Architectures (BEA), including a transition plan, and (c) a Systems Review and Compliance process as required by public law. The BMSI program manager reports directly to the Deputy Chief Financial Officer (DCFO) in the office of the Under Secretary of Defense (Comptroller).

This organizational chart represents BMSI’s place within the Department’s Comptroller Office.

Business Enterprise Architecture

The Department’s Business Enterprise Architecture (BEA) is the largest, most complex, and most pervasive business architecture developed to date, in either the public or private sector, anywhere in the world. It significantly impacts not only those business processes directly associated with financial management, but also the enormous number and types of processes that support the Department’s budget formulation, acquisition, inventory management, logistics, personnel, and property management businesses.

Moreover, the architecture not only identifies many existing business processes - it also incorporates best business practices from both the private and public sectors. Essentially, the architecture is an integrated blueprint for Departmental business transformation.

A Transition Plan that charts the course to improved business operations accompanies the architecture. As envisioned by the management of the BMMP, the architecture and the Transition Plan will help move the Department to its future business environment in an effective, efficient, and timely manner, while minimizing the impact of the transition on current operations, organizations, and personnel.

The BEA system compliance assessment provides the process that will satisfy BMMP requirements and Public Law 107-314, Section 1004 requirements for a "…determination that the defense financial system improvement is consistent with both the enterprise architecture and transition plan."

Compliance will be evaluated at Defense Acquisition milestone reviews, and for major financial system improvements or for system change requests costing more than $1 million dollars. To the greatest extent possible, the BEA System Compliance Assessment process will leverage the designated statutory and regulatory requirements needed at the designated acquisition “milestones.”

BMMP Governance Model and Business Domains

The BMMP Governance Model establishes DoD’s initial approach to governance for the BMMP. Governance describes how and by whom business transformation will be implemented within the Department. Specifically, the Governance Model:

• Is a management vehicle designed to ensure efficient execution, guidance, and oversight for DoD business transformation and compliance activities.

• Is achieved through organizational structure and performance measurement, which define boundaries, authorities, responsibilities, and tasks.

• Describes the guidance and management processes that support program execution and oversight.

• Aligns the acquisition, planning/budgeting, implementation, and evaluation of all DoD Business systems with BMMP’s strategic direction.

The Department’s business transformation requires building processes and related systems that transcend current organizational boundaries, making extensive coordination across DoD Components (Military Departments, Defense Agencies, and DoD Field Activities) absolutely essential. In order to transform these business processes, the Under Secretary of Defense (Comptroller) – in coordination with the Under Secretary of Defense (Acquisition, Technology and Logistics) (USD(AT&L)) and the Assistant Secretary of Defense (Networks and Information Integration)/Chief Information Officer (ASD(NII)/CIO) – has been tasked by the Secretary to oversee the major activities undertaken in implementing business transformation. Transformation entails engaging the Department’s Principal Staff Assistants (PSAs) to build and manage six key functional areas, called Business Domains, and the Enterprise Information Environment (EIE) Mission Area that cut across the Components.

Program Accomplishments

The Secretary of Defense made a clear mandate to begin business transformation in July 2001, and the BMMP delivered! Since its inception, the program has laid the foundation needed to successfully modernize in an integrated manner. Considerable work is needed before the program can claim victory in business transformation. Nevertheless, the BMMP team has made several noteworthy accomplishments:

• Developed and implemented a broad-based program strategy, outlining our transformation approach.

• Created initial versions of a Business Enterprise Architecture and Transition Plan.

• Established a Department-wide management or governance approach.

• Produced a set of preliminary performance metrics to help the program reach its goal of integrated business transformation.

Outlined a compliance assessment process that enables the Department to identify and reduce systems through an aggressive portfolio management and systems review process.

For more information on this article please contact Mr. Pat Stansfield, Booz Allen Hamilton, at Stansfield_patrick@

Chapter Elections:

The chapter elections are just around the corner for the new slate of officers (Service Vice Presidents).

If interested, please submit your name, phone number, e-mail address and a one- paragraph bio to LT Diane Perry, ASMC Chapter Secretary, at ddperry@comdt.uscg.mil,

The Chapter website is a great source of information for all Chapter activities. Web Site: Washington-

Next Luncheon: 14 April 2004

Speaker: VADM Thad W. Allen

Chief of Staff, U.S. Coast Guard

Topic: Strategic Direction of the Coast Guard since 9/11 and its impact on Planning, Budgeting, Financial Management and Acquisition

Place: Holiday Inn, 2460 Eisenhower Ave

Arlington, VA

NATIONAL NEWS

PDI 2004 will be held in Cleveland, Ohio on June 1-4, 2004 an will be hosted by the Cleveland Chapter with assistance from Buckeye and Aviation chapters. Sixteen hotels are reserved, with a range in price from $85 to $116. Registration will open at the end of February. Early registration for ASMC members will be $450. The Federal Executive Institute will be providing workshops. Video streaming will be available, as with PDI 2003. Sessions will count for Continuing Professional Education Units.

|Name |Title |E-Mail |Phone |

|Capt. George Asseng |President |gasseng@comdt.uscg.mil |(202) 267-0716 |

|Lt. Diane Perry |Secretary |ddperry@comdt.uscg.mil |(202) 267-6013 |

|Lt. Marc Knowlton |Treasurer |mknowltoncomdt.uscg.mil |(202) 267-0737 |

|Ralph Proctor |OSD Vice President |Ralph.proctor@osd.mil |(703) 614-5771 |

|Lucy Williams |OSD Ass't Secretary |lucy.williams@osd.mil |(703) 697-1101 ext 115 |

|Craig Fitzgibbons |DFAS Vice President |craig.fitzgibbons@dfas.mil |(703) 607-3832 |

|Susan Eldridge |DFAS Ass't Secretary |susan.eldridge@dfas.mil |(703) 607-5007 |

|Rod Bricksin |Army Vice President |Roderick.Bricksin@hqda.army.mil |(703) 692-4982 |

|Nancy Palmer |Army Ass't Secretary |Palmern@fmmc.army.mil |(703) 696-3418 |

|Shirley Simpkins |Navy Vice President |Simpkinssm@navsea.navy.mil |(202) 781-2785 |

|Brenda LaFleur |Navy Ass't Secretary |Lafleurbl@navsea.navy.mil |(202) 781-2109 |

|Sandra Wright |USMC Vice President |Wrights@hqmc.usmc.mil |(703) 692-5752 |

|Vacant |USMC Ass't Secretary | | |

|Sharon Latzen |Air Force Vice President |Sharon.latzen@pentagon,af.mil |(703) 614-3644 |

|Lt. Lasheeco Graham |Air Force Ass't Secretary |Lasheeco.graham@pentagon.af.mil |(703) 614-4098 |

|Warren Cottingham |USCG Vice President |wcottingham@comdt.uscg.mil |(202) 267-0484 |

|Lt. John Imahori |USCG Ass't Secretary |jimahori@comdt.uscg.mil |(202) 267-6679 |

|Richard Pineda |Corporate Vice President |Richard.Pineda@ |(703) 560-9477 |

|Craig Silcox |Corporate Ass't Secretary |csilcox@ |(202) 533-4296 |

Executive Board Members 2004 - 2005

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