Advancing Operational Performance in Defense to Achieve More with Less

Profound changes over recent decades in national budgetary spending, through technological advancement as well as through shifts in the nature of the threats and the need for multinational collaboration, have left defense organizations struggling over how best to adapt their operations. Add to this the impact of digital disruption and the need for a disciplined approach to change and transformation is more vital than ever.

Several leading armed forces have presented new plans for agile forces that are capable of fulfilling the increasingly changing requirements for “boots on the ground.” To realize

these requirements, defense organizations need highly flexible operational capabilities, supported by accurate intelligence, information technologies and resilient operating models. Merely realizing short-term budget cuttings without an appropriate strategy for how to improve or at least maintain capabilities has resulted in sobering lessons in recent missions, such as setbacks from inadequately maintained military vehicles. Defense departments must introduce realistic strategies around achieving more with less. In large part, the answer lies in addressing core operating models and their underlying processes.

An enabling discipline Working closely with defense organizations, Accenture has found that the discipline of value-driven Business Process Management (BPM) is an effective means for building high-performing and agile defense operating models. From a BPM perspective, a defense operating model consists of operational and supporting defense capabilities which are primarily defined by end-to-end processes across functions. Such capabilities are in operational areas—for example, force planning, force generation or force deployment—and in supporting areas—for example, Weapon Life Cycle Management or Logistics.

Advancing Operational Performance in Defense to Achieve More with Less

Today’s defense organizations are fighting their own war on improvement. From digital disruption to technology innovation, or from budgetary constraints to a changing security landscape, fundamental shifts in how they operate are being imposed. Business Process Management (BPM) is a discipline that helps defense organizations adapt and turn their strategies into high-performing operations.

Processes are the means to turn strategic objectives for the overall organization or specific capabilities into measurable results.

Managing armed forces by focusing on process-based capabilities is often the key to overcome shortcomings such as:

• A disconnect between strategy, planning and operations

• Low level of transparency and control around the performance of operations

• Inflexible and inefficient procedures, due to rigid regulations or systems

• Savings in one area restricting performance in another

• Inability to build well-performing operative or service functions due to disconnected organizational silos

• Technological solutions that do not provide expected benefits

BPM integrates all capability design elements consistently. By linking information technology, people skills, performance targets, and other resources with the process-flow, effective operational capabilities can be established. By doing so, BPM proactively balances conflicting objectives, such as speed versus cost, and helps to overcome inherent contradictions.

Accenture BPM helps defense organizations create a high-performing operating model in three ways:

• BPM value strategy: defining the value of BPM for the strategic agenda, overcoming classical process modelling conflicts and creating a value map

• BPM process-led transformation: realizing value by creating process and

operational efficiency, aligning technology, building high-performing operational and supporting defense capabilities and managing transformation

• BPM life cycle: Establishing and running the process of process management within a defense organization

BPM value strategyValue-driven BPM defines the capabilities and value chains required to solve the strategic challenges of a defense organization. It defines the guiding principles for BPM needed to overcome classical process modelling conflicts, such as effect versus efficiency, compliance to standards versus agility or external interoperability versus internal integration.

EffectExternal Focus

Internal Focus

Transparency

Efficiency

Agility

IntegrationCompliance

Interoperability

The Values of BPM

Value-driven BPM helps to orient defense organizations—which capability should change, how and for what purpose. This leads to a clear understanding of the value potential within core process areas. As a result, the necessary decision-making transparency across the organization, with evidence of how functions are interconnected and the status of capability maturity, can be derived. Additionally, value-driven BPM offers guidance on which innovations have the most impact and how best digitalization benefits can be realized. In doing so, BPM value strategy can provide a road map for transformation and identify specific value potential, clear priorities and intended timelines.

BPM process-led transformationBPM process-led transformation (BPM PLT) accents optimization by innovating operating models and employing advanced technological solutions for improving process performance, as well as upskilling personnel. It builds on the Accenture Logical Operating Model for Defense that encompasses many

years of experience within leading defense organizations on how to organize to be better prepared for current and future challenges. BPM PLT not only defines high-performing defense operating models, process architectures and system support, but also enables the transformation from the current to the aspired mode of operation by providing resilient change management support. A portfolio of services for operating model design, process excellence, capability implementation and continuous improvement helps defense organizations to advance their performance levels. In turn, innovation and agility become part of day-to-day operations.

BPM process-led transformation includes:• A holistic logical operating

model encompassing the business processes required for military operations as well as supporting functions defined on five levels from core processes down to detailed activity flows needed for daily operations. It consists of more than 500 defense-specific processes and has proven to

be an effective starting point for business process design and improvement, application design and development, leading practice analysis or benchmarking. It does not replace design but it makes the specific defense process design faster and helps to achieve high-quality process performance.

• A platform for storing, organizing, searching, viewing and securing process content which consists of more than 85,000 cross-industry process and data models.

• A Capability Assessment Model (CAM) and CAM Diagnostic Tool (CDT) that establishes a road map for identifying short- and long-term objectives relevant to gap analysis.

• The Application Assessment Tool (AAT) that assesses and evaluates an organization’s technology landscape and its maturity across its business processes, helps capture the current and aspirational targets and facilitates definition of the technology road map.

BPM linking operations and technology

Indirectly process related

TechnologyOperating Model

Level of Ambition

Operational scenarios

Defense capabilities

Enabling technologies

Directly process related

Business processes Process technologies

• The Time Distribution Survey Tool (TDS) underlying methodology that greatly reduces the lead time to conduct organizational workforce time management analysis and supports organizational change and transformation initiatives by setting the stage to reach out to key stakeholders.

• The Lean Six Sigma (LSS) process improvement approach, tried and tested in the private sector to target manufacturing processes, now adapted for use on service and administrative processes for government organizations ranging from the state governments to the United States Government offices, to all branches of the United States Armed Forces.

• Information Technology Infrastructure Library (ITIL), Enhanced Telecom Operations Map (eTOM), Supply Chain Operations Reference (SCOR) and additional models to foster external product and service quality

In addition to these proven transformation tools, Accenture provides a ready-to-use customized defense specific IT-solution, which is based on the Accenture defense logical operating model—the Accenture High-Velocity Defense Solution. It consists of an interlinked defense process repository and a pre-customized operative SAP defense solution.

BPM life cycleTo sustain the advantages of process-led transformation, swift execution and management of these processes must be achieved and maintained throughout their life cycle. A process governance and management organization provides the organizational component for the “process of process management.” It defines the organizational structure, roles and responsibilities for a successful BPM capability, the internal “process offerings,” the operating model for the “process of process management,” as well as the guidelines and the standards that will be used.

BPM life cycle helps defense

organizations proactively manage, improve and maintain their process-based operational capabilities. It provides process management strategy, governance, process repositories, performance management and process automation as core components. Forming part of the forces’ planning function, the BPM life cycle allows defense organizations to better plan, design, build and manage their processes on their own. Forces will benefit from agile process transformation as well as innovative, scalable and reliable high-performing business processes.

Accenture has a track record of reliably designing and establishing business process management

capabilities in defense organizations around the world. Additionally Accenture has deep experience and hands-on process based management of operational units such as procurement, maintenance, IT, HR or finance in the private sector and defense.

Defense organizations can also outsource the maintenance and support of their process repository, the entire repository application—or even a whole process center of excellence. The BPM life cycle managed services can take care of the conversion of models, quality assurance and more. Depending on the requirement of a defense organization, Accenture can provide support as managed services on site or off site.

Core components of BPM-Lifecycle

Process of Process Management

BPM-LModelling and

Repositories

BPM-LManagedServices

BPM-LStrategy

BPM-LGovernance

Process Automation

BPM-LPerformanceMonitoring

Accenture BPM in practice

Accenture helped a military unit use Lean Six Sigma to improve the supply chain for its customized vehicles prior to deployment in defense operations. Process improvement accelerated throughput of up-armored vehicles from 10 per day to 40 or more. Process time was reduced from 120 days to 30 days—75 percent less than the previous timeframe. The team eliminated 11 of 17 transportation steps and consolidated six spreadsheets into a single unified tracking system. Based on these results, team members knew they had succeeded in driving substantial waste out of the process.

Accenture helped a specialized US warfare unit to better meet the needs of its warfighters with speed, efficiency and consistency. The Rapid Path to Results program set a new standard for Lean Six Sigma deployments that accelerate process improvements, customize training and enable defense organizations to identify—and act upon—future improvement opportunities. The results were tangible and quickly realized: reduced inventory of a certain class of combat craft, resulting in savings of US$25 million; reduced cycle time to repair craft from 180 days to 90 days; increased production of cables from 6,000 to 24,000 per month—the equivalent of US$5 million in dollar savings.

Accenture helped the United States Army to streamline its vehicle repair process. In a matter of months, the military-civilian project team boosted the first-pass yield (FPY) rate from 62 percent to more than 95 percent, five points

higher than the initial project goal. For the January-March 2008 period, FPY reached 98 percent. Accenture calculated the financial benefits at more than US$2 million annually due to avoiding 94,000 extra hours that had been spent each year when the FPY rate was roughly 30 points lower.

Accenture worked with a military supply group to implement superior organization techniques for its stock room. Streamlined inventory processes have led to greater accuracy and quicker access to supplies near battle zones. Stock-room time to count helmets has dropped from 17 minutes to 30 seconds; for belts, from 16 minutes to 30 seconds; and for canteens from three minutes down to a mere six seconds. Extensive manual paperwork was shifted to an electronic system, and the time needed to create an issues summary has dropped from 13 minutes to under one-and-a-half minutes.

Accenture used Lean Six Sigma to quicken patients’ access to care at a medical network on the United States East Coast. The process cycle time, reflecting improved handling of telephone inquiries, dropped by 57 percent. Whereas it had been taking 3.5 days at the start of the project, callers now heard back within 1.5 days. The number of abandoned calls, due to spending less time on hold, dropped by 40 percent. Representatives handled 35 percent more calls each day, and the number of appointments booked rose by 34 percent. Other benefits included healthcare providers being able to spend more time with patients, fewer patient no-shows, more patients receiving

urgent treatment, physicians are able to book more patients and bill for their time and morale improvements (for the call center, nurses and physicians), and improved patient satisfaction.

Sustainable successArmed forces seeking to respond more effectively to changing government mandates and security landscapes need to adapt their operating models and constituent processes and maintain flexibility. To increase performance and agility they must understand the value potential within their organizational capabilities and be able to realize it. Business process management is the discipline that can enable defense organizations to do so.

Accenture BPM services takes advantage of several decades of experience—both inside and outside of the defense industry—tried and tested methods and tools, and the talents of many skilled practitioners. Building on these foundations, Accenture BPM delivers operational transparency, agility, compliance, quality, efficiency, internal integration and external interoperability to help the armed forces manage today’s demanding environment and prepare for tomorrow’s world.

About Accenture

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

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ContactsFor more information about the Accenture BPM solution, contact:

Dr. Hubert Vogt hubert.vogt@accenture.com

Srikant A. Patro a.srikant.patro@accenture.com