Achieving Transformation Business Management Modernization Program Elizabeth A. McGrath Deputy Director, BMMP February 1, ...
BMMP Mission “ Transform business operations to achieve improved warfighter support while providing auditable financial re...
<ul><li>How big is BMMP?  It impacts: </li></ul><ul><li>5.5M employees, service members and beneficiaries </li></ul><ul><u...
The change ……. <ul><li>National Defense Authorization Act </li></ul>
Business Transformation Framework Disposition Procurement Storage & Transportation Maintenance Human Resources Design & De...
BMMP Status <ul><li>Significant Accomplishments: </li></ul><ul><ul><li>Increased DoD-wide Systems Visibility  -- Identifie...
BMMP Status <ul><li>Significant Challenges: </li></ul><ul><ul><li>Approach/Scope :  Initial approach too comprehensive, an...
Applying the Framework: NAVY CONVERGE Disposition Procurement Storage & Transportation Maintenance Human Resources Design ...
BMMP Governance Structure Domain Owners Integration Team (DO/IT) Business Enterprise Architecture  Review and Change  Cont...
Role of Defense Business Systems Management Committee Blue Elements are required by NDAA Service, Component, Defense Agenc...
BMMP Roles & Responsibilities DOD Enterprise Component Enterprises Finance AT&L P&R NII SFIS, OSD Ledgers for Working Capi...
NDAA Investment Review Boards - Mission Alignment Planning, Budgeting, Accounting Disposition Procurement Storage & Transp...
SFIS Description/Scope <ul><li>Description:   The SFIS is a comprehensive data structure that supports requirements for bu...
SFIS Information Components Cost Accounting Information Trading Partner Information Transactional Information Organization...
SFIS/USSGL Implementation Plan <ul><li>Each DoD Core Business System will require a tailored SFIS/USSGL Implementation Pla...
<ul><li>Congress expects the Department of Defense to  </li></ul><ul><li>  instill greater control over information  </li>...
<ul><li>Under Secretary of Defense Memo dated July 16, 2004 mandates:  </li></ul><ul><ul><li>Under Secretary of Defense (C...
Summary <ul><ul><ul><ul><li>BMMP continues to move forward.....building on accomplishments and restructured for efficiency...
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  • This is a matrix that shows on one axis “functional silos” (legal, IT, HR, planning and budgeting, design and development, procurement, storage and transportation, maintenance, and disposition) against the other axis of the business transformation effort priorities of personnel management; weapon system lifecycle management; real property and installation lifecycle management; materiel supply and service management; and financial management. The horizontal nature of business processes are emphasized in order to leverage the framework to break down functional silos within the department.
  • This matrix shows the previous “functional silos” matrix converged to one framework, maintaining existing oversight, but eliminating OSD micromanagement. Service CIOs and business leadership are accountable for reporting compliance to statutory regulations. This model uses the service governance instead of layering on top of it.
  • The picture shows the BMMP Key Players and the relationship among and between each of them, as follows. Secretary of Defense – Department’s transformation leader…business transformation is one of DoD’s “Top Ten Priorities”. Under Secretary of Defense (Comptroller) and the Assistant Secretary of Defense (Networks and Information Integration) / DoD Chief Information Officer – Co-managers of all BMMP efforts. Principal Staff Assistants (Domain Owners) – within their respective functional areas via the Domain structure will: Lead business transformation Establish and maintain a Domain governance process Manage the Domain portfolio and transition plan Assist in the extension of the BEA Perform system reviews Represent the Domain’s perspective in resolution of cross-Domain issues Business Modernization and Systems Integration Office (BMSI) will: Serves as the program management office for BMMP Responsible for developing and maintaining the BEA (the blueprint that prescribes how DoD business systems interact)
  • The picture shows the roles of the various organizations involved in Business Management Modernization Program and the review and approval process, as follows. Service, Component, Defense Agency Business Execution send requirements to the approval authorities AT&amp;L, IRM, P&amp;R, and NII, who in turn forward recommendations to the Defense Business Systems Management Committee for Review and Approval.
  • This picture shows the BMMP Roles and Responsibilities and the relationship between them. DOD Enterprises are Finance, AT&amp;L, P&amp;R, and NII who integrate between business missions. Component Enterprises Army, Navy, Air Force, DLA and Marine Corps interface with the DOD Enterprises through OSD.
  • This is the same matrix used previously in this brief that shows on one axis “functional silos” (legal, IT, HR, planning and budgeting, design and development, procurement, storage and transportation, maintenance, and disposition) against the other axis of the business transformation effort priorities of personnel management; weapon system lifecycle management; real property and installation lifecycle management; materiel supply and service management; and financial management. Added in this picture is the DOD Enterprise associated with each business transformation effort, as follows: personnel management is governed by the P&amp;R IRB; weapon system lifecycle management, real property and installation lifecycle management, materiel supply and service management are governed by the AT&amp;L IRB; and financial management is governed by the Finance IRB.
  • In today’s environment, each component has its own stove-piped, non-integrated set of acronyms, values, and data element names. This stems from years of each service developing unique processes and business practices. As a result, most systems do not share data and there is no connection between budget, procurement, entitlement, disbursing, accounting, and performance. contractor SFIS represents a common business language that allows people and systems to talk with each other using a standard business data structure.
  • This picture shows the six SFIS Information Components of Appropriation Account Information, Budget Program Information, Organizational Information, Transactional Information, Trading Partner Information, and Cost Accounting Information. Each of these six components is linked shown linked to a common hub, labeled transaction.
  • Many people thought (and continue to think that this is Financial in Nature)
  • Achieving Transformation Business Management Modernization ...

    1. 1. Achieving Transformation Business Management Modernization Program Elizabeth A. McGrath Deputy Director, BMMP February 1, 2005
    2. 2. BMMP Mission “ Transform business operations to achieve improved warfighter support while providing auditable financial reporting across the Department of Defense.”
    3. 3. <ul><li>How big is BMMP? It impacts: </li></ul><ul><li>5.5M employees, service members and beneficiaries </li></ul><ul><ul><li>Paychecks and W-2’s </li></ul></ul><ul><ul><li>Personnel records and actions </li></ul></ul><ul><ul><li>Medical and Dental records, appointments, admissions and discharges </li></ul></ul><ul><ul><li>Training records, plans, and scheduling classes </li></ul></ul><ul><ul><li>Travel requests, tickets, vouchers </li></ul></ul><ul><li>$400B + /Year </li></ul><ul><ul><li>267 Appropriations </li></ul></ul><ul><ul><li>124 Million accounting transactions </li></ul></ul><ul><ul><li>11.2 Million invoices </li></ul></ul><ul><li>$700B + in Assets </li></ul><ul><li>600,000 Buildings at 6,700 locations in 146 Countries </li></ul><ul><ul><li>$620B in Real Property Assets </li></ul></ul><ul><ul><ul><li>2.3M square feet of buildings </li></ul></ul></ul><ul><ul><ul><li>32M acres </li></ul></ul></ul><ul><li>1,312 Major weapons systems </li></ul><ul><ul><li>4.6 Million parts and supplies managed </li></ul></ul><ul><li>150+ Federal Source Laws and Regulations (Ex. Title 5, 10, 32, 37) </li></ul><ul><ul><li>4,200+ Specific requirements from source laws </li></ul></ul><ul><li>4,000+ Business Systems … and Counting </li></ul><ul><ul><li>Different standards and interpretations of rules and requirements </li></ul></ul>Scope BMMP: The Largest Transformation Effort in Government or Industry
    4. 4. The change ……. <ul><li>National Defense Authorization Act </li></ul>
    5. 5. Business Transformation Framework Disposition Procurement Storage & Transportation Maintenance Human Resources Design & Development Personnel Management Planning, Budgeting IT Infrastructure Legal Real Property & Installation Lifecycle Management Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority W A R F I G H T E R S Financial Management Weapon System Lifecycle Management Materiel Supply & Service Management
    6. 6. BMMP Status <ul><li>Significant Accomplishments: </li></ul><ul><ul><li>Increased DoD-wide Systems Visibility -- Identified existing inventory and developed an understanding of over 4000 business systems. </li></ul></ul><ul><ul><li>Developed a Business Enterprise Architecture-- depicting over 90 core processes, and reduced business rule set to a core of 25,000 rules and regulations necessary for a desired, auditable end-state. Continual review and reduction of this set of rules will be ongoing. </li></ul></ul><ul><ul><li>Created Financial Data Standards —built and published a Standard Financial Information Structure (SFIS) that standardizes the coding of financial data for use in all DoD information systems. </li></ul></ul><ul><ul><li>Created Process for Control of IT Spending-- developed a systems assessment process for examining both new and legacy systems for business enterprise architecture compliance and subsequent investment. </li></ul></ul><ul><ul><li>Established Cross-Organizational Cooperation-- built working relationships between and among Domains and Services to ensure cross-process requirements are incorporated into systems development. </li></ul></ul>
    7. 7. BMMP Status <ul><li>Significant Challenges: </li></ul><ul><ul><li>Approach/Scope : Initial approach too comprehensive, and too “technically” focused: </li></ul></ul><ul><ul><ul><li>Service buy-in has been challenging due to ongoing work creating a lack of consensus on program priorities </li></ul></ul></ul><ul><ul><ul><li>Greater emphasis on building upon service achievements and the enhancement of warfighter support is required. </li></ul></ul></ul><ul><ul><li>GAO Criticism— GAO has been critical of both program progress and governance model: </li></ul></ul><ul><ul><ul><li>More senior-level leadership/involvement recommended </li></ul></ul></ul><ul><ul><ul><li>Need a more concrete transition plan with measurable milestones leading to an auditable system. </li></ul></ul></ul><ul><ul><li>Continuity of Program Leadership —three program managers in three years; difficulty in attracting experienced, knowledgeable talent to maintain program focus. </li></ul></ul><ul><ul><li>Commitment to a “Clean Audit” – Need to combine missions to support warfighter, accomplish business reengineering, and attainment of auditability in parallel. </li></ul></ul>
    8. 8. Applying the Framework: NAVY CONVERGE Disposition Procurement Storage & Transportation Maintenance Human Resources Design & Development Personnel Management Planning & Budgeting IT Infrastructure Legal Real Property & Installation Lifecycle Management Financial Management Weapon System Lifecycle Management Materiel Supply & Service Management
    9. 9. BMMP Governance Structure Domain Owners Integration Team (DO/IT) Business Enterprise Architecture Review and Change Control Board OUSD(AT&L) -- Acquisition (ACQ) OUSD(P&R) -- Human Resources Management (HRM) OUSD(AT&L) -- Installations & Environment (I&E) OUSD(AT&L) -- Logistics (LOG) OUSD(C) -- Strategic Planning & Budgeting (SPB) OASD(NII) Enterprise Information Environment (EIE) Mission Area Business Modernization and Systems Integration (BMSI) Business Domains = Business Domains = DoD Mission Area = BMMP Program Office OUSD(C) -- Accounting & Finance (ACC/FIN) SecDef DepSecDef BMMP Steering Committee BMMP Executive Committee
    10. 10. Role of Defense Business Systems Management Committee Blue Elements are required by NDAA Service, Component, Defense Agency Business Execution AT&L IRB Approval Authority Business Management Modernization Program Cross Mission Integration Transformation Program Oversight Integrated Program Baseline & Status Reporting Portfolio Management Transition Planning Architecture Solutions Oversight Solutions Implementation Portfolio Management Transition Planning Architecture Solutions Oversight Solutions Implementation Portfolio Management Transition Planning Architecture Solutions Oversight Solutions Implementation Portfolio Management Transition Planning Architecture Solutions Oversight Solutions Implementation FM IRB Approval Authority P&R IRB Approval Authority NII IRB Approval Authority OIPT Single Review & Approval Process Using OIPT Defense Business Systems Management Committee (Review/Approve)
    11. 11. BMMP Roles & Responsibilities DOD Enterprise Component Enterprises Finance AT&L P&R NII SFIS, OSD Ledgers for Working Capital & Appropriated Funds, Planning & Budgeting Visibility & Analysis SPS Transaction Hubs Business Analysis UID, RFID, WAWF DIMHRS NCES / GIG ARMY NAVY AF DLA MC Army Enterprise Architecture Alignment to OSD Enterprise Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants Navy Enterprise Architecture Alignment to OSD Enterprise Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants Air Force Enterprise Architecture Alignment to OSD Enterprise Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants DLA Enterprise Architecture Alignment to OSD Enterprise Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants Marine Corps Enterprise Architecture Alignment to OSD Enterprise Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants OSD Required Integration to DOD Enterprise Prepare Program Baseline and Transition Plan for the OSD Governed Layer of the BEA. Work integration between business missions – need based integration. Ensure provision of status on investments using transformation framework, and compile submissions, working with service CIOs. BMMP name will continue, but program significantly rescaled and restructured to reflect this model operating under a well-defined MDAP program baseline. Effort will be lean and focused – integration across business missions, program baseline creation for OSD enterprise layer, and compilation of status submissions from Components. Provide support as needed to DBSMC.
    12. 12. NDAA Investment Review Boards - Mission Alignment Planning, Budgeting, Accounting Disposition Procurement Storage & Transportation Maintenance Human Resources Design & Development Personnel Management IT Infrastructure Legal Real Property & Installation Lifecycle Management Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority Business Transformation Effort Priority Financial Management Weapon System Lifecycle Management Materiel Supply & Service Management P&R IRB AT&L IRB Finance IRB } Each IRB will prioritize and review investments in accordance with NDAA requirements based on the capability requirements of the business mission owner. The DBSMC will serve as the final arbiter of conflict between business missions when all other avenues of resolution have failed. IRB’s should use existing acquisition program IPT oversight structures – we should not invent new oversight requirements.
    13. 13. SFIS Description/Scope <ul><li>Description: The SFIS is a comprehensive data structure that supports requirements for budget, financial accounting, cost/performance management, and external reporting across the DoD enterprise. SFIS is a tool that should be put in the hands of operational users and implemented in the source systems they use. </li></ul><ul><li>Scope: The SFIS is the means for categorizing financial information along several dimensions as needed to support financial management and reporting functions. Implementation of SFIS will make the structure inherent in all business processes in which financial transactions occur. </li></ul>
    14. 14. SFIS Information Components Cost Accounting Information Trading Partner Information Transactional Information Organizational Information Budget Program Information Appropriation Account Information Transaction
    15. 15. SFIS/USSGL Implementation Plan <ul><li>Each DoD Core Business System will require a tailored SFIS/USSGL Implementation Plan/Approach dependent upon functional scope, degree of integration with other Core Business Systems, and proposed software solution. </li></ul><ul><ul><li>For example, implementing SFIS/USSGL in a Logistics COTS product will be much different than implementing SFIS/USSGL in a Legacy Budgeting system. </li></ul></ul><ul><li>Proposed Actions </li></ul><ul><li>Based upon each DoD Core Business System’s functional scope, degree of integration with other Core Business Systems, and proposed software solution, the FM Domain will assist each Core Business System’s PMO with the development of a tailored Implementation Plan/Approach that is BEA compliant. </li></ul><ul><ul><li>COTS products will be expected to adopt both SFIS and USSGL </li></ul></ul><ul><ul><li>Legacy systems will implement either SFIS or USSGL or both only where there is a justifiable business case to do so </li></ul></ul>
    16. 16. <ul><li>Congress expects the Department of Defense to </li></ul><ul><li> instill greater control over information </li></ul><ul><li> technology investments. </li></ul><ul><li>Section 8083 of the DoD Appropriations Act of 2005 </li></ul><ul><li>(Public Law 108-287) states: </li></ul><ul><li> (b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL MANAGEMENT MODERNIZATION PLAN. </li></ul><ul><li>(1) During the current fiscal year, a financial management automated information system, a mixed information system supporting financial and non-financial systems, or a system improvement of more than $1,000,000 may not receive Milestone A approval, Milestone B approval, or full rate production, or their equivalent, within the Department of Defense until the Under Secretary of Defense (Comptroller) certifies, with respect to that milestone, that the system is being developed and managed in accordance with the Department's Financial Management Modernization Plan. The Under Secretary of Defense (Comptroller) may require additional certifications, as appropriate, with respect to any such system. </li></ul>System Certification Systems Compliance: It’s the Law
    17. 17. <ul><li>Under Secretary of Defense Memo dated July 16, 2004 mandates: </li></ul><ul><ul><li>Under Secretary of Defense (Comptroller) approval is required before an obligation of funds in excess of $1 million in a fiscal year can be incurred for system improvements or any milestone approval of a business system (financial management automated information system, non-financial automated information system, or mixed information system supporting financial and non-financial functions). </li></ul></ul><ul><ul><li>All system improvements of $1 million or less that are not IEEE priority 1 or 2 must be certified by Business Domain – no delegation. </li></ul></ul><ul><ul><li>Each Business Domain owner developed a system compliance plan that: </li></ul></ul><ul><ul><ul><li>Identified the business systems requiring USD(C) certification/approval in accordance with the above requirements; </li></ul></ul></ul><ul><ul><ul><li>Developed a schedule to review those business systems; and </li></ul></ul></ul><ul><ul><ul><li>Obtained cross-Business Domain coordination on the schedule. </li></ul></ul></ul>Comptroller Certification
    18. 18. Summary <ul><ul><ul><ul><li>BMMP continues to move forward.....building on accomplishments and restructured for efficiency. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>High level attention and commitment....within Congress and OSD. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Continued Emphasis on Business Transformation.....not just FM. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Financial Managers will benefit....processes more standard, producing information supporting business intelligence. </li></ul></ul></ul></ul>

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