1 booz allen hamilton proprietary meeting today’s professional military comptroller challenge:...

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Booz Allen Hamilton Proprietary

Meeting Today’sProfessional Military Comptroller Challenge:Making Smart Cuts

Dave PriceBrig Gen (Ret), USAF

8 May 2012

America Society of Military Comptrollers

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Booz Allen Hamilton Proprietary America Society of Military Comptrollers

Book Review …

Who’s at the pointy end of the spear today …

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Book Review …


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DOD Funding Trend …

FY12 Enacted FY13 FY14 FY15 FY16 FY170

100

200

300

400

500

600

700

Baseline Defense Overseas Contingency Operations

$83B$115B

$518B(-5.6%)

$524B(1.1%)

$533B(1.8%)

$546B(2.3%)

$556B(1.9%)

$567B(2.2%)

$472B$514B

Source(s): OMB, Budget Control Act of 2011, The Heritage Foundation

Estimated DoD funding level if sequestration continues thru FYDP

$ Billions

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FY13 Way Ahead …

FY13 budget enactment … CRA?

National election on 6 Nov

Lame-duck Congress

Sequestration required on 2 Jan

Mid-year budget cut of ~$52B for DOD

Rules of engagement are unknown

Professional comptrollers will be left to figure it out …

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Process Challenges …

There are systemic barriers to budget decision making – Budget timeline often works against thoughtful decision making– Ad hoc process for prioritizing requirements– Weak enterprise governance process– Missing right tools to frame the alternatives– Programmatic dependencies are not well understood– No mechanism for surgically decrementing programs– Wrong incentives in place for effective decision making– Resistance to change

Many initiatives require investments to achieve savings

Focus on quick wins can distract from the long-term goals

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Budget Toolkit …


Cutting the Budget – Peanut butter spread

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower– Outsource tasks

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower– Outsource tasks– Invest in information technology

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower– Outsource tasks– Invest in information technology– Consolidate and centralize activities

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower– Outsource tasks– Invest in information technology– Consolidate and centralize activities– Process re-engineering

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Budget Toolkit …


Cutting the Budget – Peanut butter spread– Focus on administrative costs– Reduce manpower– Outsource tasks– Invest in information technology– Consolidate and centralize activities– Process re-engineering– Programmatic cuts

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Making Smart Cuts …

Carefully assess the budget environment

Prepare for budget cuts now by updating strategic plans and make leadership priorities clear to everyone

Measurable goals provide mechanism for budget accountability

Establish a transparent decision making process

Leaders need to consider alternative ways of performing functions

Understand the links and dependencies between programs

Substantial across-the-board cuts can be severe and penalize the most efficient operations

Allow field to determine the best way to meet reduction targets based on strategic plans, performance measures, and leadership priorities

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Bottom Line …

Comptrollers have a new high profile role …

Understand how to use the budget toolkit …

Know the real-world constraints …

Think and plan ahead …

Be flexible …

Remember you are doing important work for our Nation …

Contact me at: [email protected]

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Questions …

Contact me at: [email protected] being loaded on F-22 in preparation for vibration test at Eglin Air Force Base

1 booz allen hamilton proprietary meeting today’s professional military comptroller challenge:...

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