The Aerospace & Defense Forum 1/18/2013 Use of Strategic Management Methods in DoD Acquisition Programs Dr. Stanley Rosen P Professor of Acquisition Management f f A i iti M t Defense Acquisition University The Aerospace & Defense Forum January 18, 2013 1 Defense Acquisition University Provides a global learning environment to develop qualified acquisition professionals who, deliver and sustain effective and affordable warfighting capabilities. Over 140,000 professionals comprise the Defense Acquisition W Workforce . kf Develop acquisition professionals through: � Acquisition certification and leadership training � Mission assistance to acquisition organizations and teams � Directed research � Online knowledge sharing resources � Continuous learning assets A key element of the Office of the Secretary of Defense 2 1
The Aerospace & Defense Forum 1/18/2013 Conclusions and Conclusions and Research Research Methodology Methodology Background Background Findings Findings Next Steps Next Steps Objective Objective DAU Is Conducting Research to Determine DAU Is Conducting Research to Determine How Strategic Planning and Management How Strategic Planning and Management How Strategic Planning and Management How Strategic Planning and Management (SP&M) Most Effectively Supports Defense (SP&M) Most Effectively Supports Defense System Acquisition Program Success System Acquisition Program Success 3 DAU Research Has Identified How SP&M Practices are Being Used in Defense System Acquisition • How widely? • How well? • To what effect? • Best practices? Definition: “Strategic Planning and Management helps organizations achieve more successful acquisition outcomes. The first part of the process is centered on strategic planning where managers jointly formulate their strategy. The second component, strategic management, addresses implementation of the strategic plan implementation of the strategic plan. Strategic Planning and Management has the following key characteristics: - Positions the organization through strategy and capability planning. - Responds to real time strategic issues. - Tackles systematic management of resistance during strategic Implementation.” 4 2
The Aerospace & Defense Forum 1/18/2013 Implications for A&D Forum Members • Understand the strategic nature of major defense acquisition programs defense acquisition programs • Understand the strategic challenges facing DoD program managers and acquisition workforce • Understand the processes and tools DoD program leaders use for strategic planning and management management • Align company and program strategies and actions with customer success criteria and management culture/methods 5 Conclusions and Conclusions and Research Research Methodology Methodology Findings Findings Background Background Next Steps Next Steps Objective Objective Strategic Planning and Management is an Strategic Planning and Management is an Important Aspect of Public Sector and Important Aspect of Public Sector and Important Aspect of Public Sector and Important Aspect of Public Sector and Defense Acquisition Activity Defense Acquisition Activity 6 3
The Aerospace & Defense Forum 1/18/2013 Strategic Planning Benefits Public Sector Organizations • Strategic planning offers many benefits to public sector organizations, including – Promotion of strategic thinking, acting and learning g g, g g – Improved decision making – Enhanced organizational effectiveness, responsiveness and resilience – Improved organizational legitimacy – Direct benefit for the people involved • “Evidence indicates that when strategic planning is seen as a practice that is improved by reason-based advice, it is one of the very useful ways in which imperfect people can one of the very useful ways in which imperfect people can cope pretty well with …’insoluble’ problems.” » Bryson, Univ of Minnesota, Dec 2010, Public Administration Review 7 Strategic Management is a Proven Tool for Effective Government Successful linkage of strategic visioning, long-range planning, budgeting and implementation has been demonstrated i l t ti h b d t t d • Promotes organizational and technological innovation Large government agencies can use strategic management processes to powerful, positive, transforming effect » Bryson, Univ of Minnesota, 2005, International Public Management Journal » Review of Preparing for the Future: Strategic Planning in the U.S. Air Force , Barzely and Campbell, 2003 8 4
The Aerospace & Defense Forum 1/18/2013 Public Sector Strategic Planning and Management is Evolving • Strategic planning has become ubiquitous in the public sector over the past 25 years • Evolving recognition that transition is needed from strategic planning to the broader process of strategic management – Effective strategy implementation – Ongoing rather than episodic – Focus on achieving strategic goals and objectives rather than on measurement j – Performance monitoring informs strategy » Poister, Georgia State Univ, Dec 2010 Public Administration Review 9 Situation • The Department of Defense is responsible for effectively using t taxpayer dollars to field d ll t fi ld systems which enhance national security. • The Department is constantly striving to find ways to improve performance. – Budget reductions are prompting “doing more with no more”(at best) – Lessons learned from best practices are being emphasized (“Better Buying Power initiatives”) 10 5
The Aerospace & Defense Forum 1/18/2013 Acquisition Programs are a Major Part of the Defense Department’s Budget Acquisition Programs impact the entire DoD budget 11 Defense Systems Acquisition is a Strategic Activity • All system acquisitions – Support organizational (and – Support organizational (and national) strategies – Have long-term implications – Help create the future • Major acquisitions – Are key to organizational (and national) success national) success – Employ significant resources – Command top-level oversight We must apply the best strategic management tools and processes 12 6
The Aerospace & Defense Forum 1/18/2013 Strategic Planning and Management is Key to Program Acquisition Success • Management challenges – Program success Program success – Organizational success • Defense acquisition programs and organizations must succeed in a dynamic environment – Requirements – Priorities – Resources – Challenges 13 Conclusions and Conclusions and Research Research Methodology Methodology Findings Findings Background Background Next Steps Next Steps Objective Objective DAU Surveyed a Broad Cross DAU Surveyed a Broad Cross- -Section of Section of Defense System Acquisition Executives Defense System Acquisition Executives y y q q 14 7
The Aerospace & Defense Forum 1/18/2013 Survey Respondents are Well Qualified How many total years have you used Strategic Planning How many years have you worked in and/or Strategic Management methodologies? acquisition management? This group was eliminated from the survey data • 393 responded • 345 have SP&M experience Respondents come from a wide range of Army, Navy, Air Force and other Defense Department programs and acquisition organizations 15 Respondents have Both Government and Non-Government Experience Where is your experience in Strategic Planning and Management? Where is your experience in Strategic Planning and Management? Surprisingly many DoD acquisition executives have private sector experience 16 8
The Aerospace & Defense Forum 1/18/2013 Conclusions and Conclusions and Research Research Methodology Methodology Background Background Findings Findings Objective Objective Next Steps Next Steps DAU Identified Key Aspects of Strategic DAU Identified Key Aspects of Strategic Planning and Management in the Defense Planning and Management in the Defense Planning and Management in the Defense Planning and Management in the Defense Acquisition Community Acquisition Community 17 Respondents Suggested Ways in Which Defense Acquisition SP&M Differs from Other Sectors Are there SP&M considerations you think are unique in a Defense System Acquisition context? • Clearly different • Not so clearly different – Responsible to taxpayers – Often wide gap in understanding between top- and working-levels, coupled with micro- – Purpose is national security, management and multi-level approvals not profit- or market-driven – Must comply with specific guidance from • Sometimes performance must be achieved at all costs others – Life-or-death implications, – Often big dollars, long timelines, complex including nuclear programs – Influence of national politics – Leadership shortcomings and inexperience – Unique federal regulations, q g , – Uncertain contradictory and frequently Uncertain, contradictory and frequently policies and processes changing • Requirements • Funding • Budgeting and funding • Policies • Acquisition/procurement • Priorities • Personnel management and • Requirements drawdown • Threats Success metrics and constraints provide unique SP&M challenges 18 9
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