Executive Agency Rapid Improvement Team Executive Briefing Report on Findings and Recommendations May 18, 2001

1 Agenda I.Background and Charter Review II.Summary Findings III.Proposed Model for Improving Executive Agent “Return on Assignment” IV.Rapid Implementation Plan V.Executive Support Required

2 Why This Executive Agent RIT?  Sharing and leveraging resources across all boundaries has become a strategic imperative for DoD.  Use of Executive Agents can reduce unnecessary redundancy and achieve global consistency.  Increasingly complex mission requirements coupled with the absence of a clear, DoD-wide policy and process deployment have exposed the need for reinvention of the Executive Agent role.  Promote Jointness across DoD Components

3 Executive Agent RIT Goal Review the current Executive Agent assignment process, roles, and responsibilities and develop recommendations to significantly improve the reliability and consistency of executive agent performance, in order to: Increase end-user satisfaction Eliminate redundancy Reduce cost of commodities/services Increase cooperation and coordination across boundaries

4 Executive Agent RIT Charter Specific Deliverables 1.Updated definition of the Executive Agent role, responsibilities and relationships. 2.Criteria for designating new Executive Agents and validating existing ones. 3.A roadmap for executing EA responsibilities and determining standards of performance for Executive Agents over their life-cycle. 4.Recommendations for specific Executive Agent assignments to be tested in upcoming FLOW exercises.

5 Executive Agent RIT Participation Executive Sponsors LTG John M. McDuffie MG Daniel G. Mongeon Mr. Louis A. Kratz Ms.Mary Margaret Evans RIT Champions COL Bob Klass CDR Mike McPeak RIT Participants OSD, CINC and Service Representatives, Defense Agencies, and Joint Staff

6 Summary Findings 1.Across DoD there is considerable agreement on the need to “reinvent” the Executive Agent role to better serve the defense environment of today, and in the future. 2.The starting point for improvement is the establishment of a DoD policy that clearly distinguishes the unique, unduplicable role of Executive Agents as DoD’s primary resource for fulfilling defined support missions.

7 Summary Findings (cont.) 3.To assure credibility and integrity, all Executive Agent assignments must be made based on a rigorous business case analysis. 4.Once designated, Executive Agents must perform against a standard balanced scorecard, whose goals are tailored to defined Executive Agent mission responsibilities.

8 Summary Findings (cont.) 5.The increased complexity and rapid pace of change in the military operational environment calls for the installation of a disciplined, end-to-end process to guide Executive Agent performance to the highest level possible across their life-cycle. 6.To ensure the consistent application of the end-to-end Executive Agent process, clear oversight accountability and authority must be assigned to an OSD level EA process owner.

9 Proposed Executive Agent Definition A DoD Component assigned by the Secretary of Defense or Deputy Secretary of Defense to provide defined levels of support for either operational or administrative missions that involve two or more organizations. This assignment is non-transferable and remains in effect until revoked. The exact nature and scope of authority delegated must be stated in the document designating the Executive Agent.

10 Criteria for Executive Agent Assignment All Executive Agent assignments must be based on a rigorous business case analysis that demonstrates the potential for delivering better performance through improved efficiency or effectiveness, or both. EFFICIENCY is defined as: Common tasks where economies of scale in providing goods/ services can only be accomplished through assignment of a single point of responsibility and authority. EVERYONE can do it, But only one can coordinate and deliver it better than everyone doing it alone. EFFICIENCY is defined as: Common tasks where economies of scale in providing goods/ services can only be accomplished through assignment of a single point of responsibility and authority. EVERYONE can do it, But only one can coordinate and deliver it better than everyone doing it alone. EFFECTIVENESS is defined as: Common tasks where capability to perform mission critical requirements cannot be duplicated without great expense and/or risk. EVERYONE needs it, But one can do it for all at the level of performance required. EFFECTIVENESS is defined as: Common tasks where capability to perform mission critical requirements cannot be duplicated without great expense and/or risk. EVERYONE needs it, But one can do it for all at the level of performance required.

11 Executive Agent Balanced Scorecard All Executive Agents will be accountable for achieving stated, agreed upon goals tailored to their specific mission needs on seven performance areas. 1.End-user satisfaction End-user survey rating actual performance vs. expectations 2.Dollar savings from economies of scale Performance against baseline unit costs 3.Responsiveness to changes in end-user mission required End-user survey rating actual performance vs. expectations 4.Reduction in support footprint Performance against baseline footprint Goal Metric 5. Single point of contact for all communication End-user survey rating actual performance vs. expectations 6. Provision of continuous, sustainable and global support as required Robustness of plans and facilities as rated by end-user Goal Metric 7. Ability to anticipate needs and match with optimal resource response Actual end-user mission accomplishment scored vs targets.

12 Disciplined End-to-End Executive Agent Process Identify and evaluate EA opportunities Step 1 Make the Decision to Assign or Decline Step 3 Communicate the Decision and Educate on the Impact Step 4 Perform Business Case Analysis Step 2 Resource the EA and Prepare to Execute Step 5 Conduct Formal Periodic EA Performance Evaluations Step 7 Make the Decision to Reassign or Divest Step 8 Execute the EA Assignment Step 6 Reevaluate or seek other options Restart the process as appropriate A Roadmap for ensuring a high return on every Executive Agent Assignment

13 Cross-functional Process Involvements Executive Agent Secretary of Defense Makes final decisions to assign and divest EA Process Owner Oversees end-to-end process Provider(s) Performs to levels contracted, continuously seek improvement End User Provides accurate requirements, timely feedback, cooperative problem-solving Subject Matter Expert Brings forward EA opportunities and assists in business case analysis Funding Authority Ensures timely budget allocation Legal Authority Support policy, contract compliance without hindering performance

14 Model for Improving Executive Agent Performance Balanced Scorecard Disciplined End-to-End process Supporting Infrastructure Consensus Definition and Selection Criteria Clear, value-added and unchallenged Standard goal categories and metrics Defined roles and rules of engagement Resources, systems and expertise

15 Rapid Implementation Plan (Establish Four Action Teams) Team 1 - Develop required policy documents. Team 2 - Validate proposed EA process, roles and responsibilities in FLOW. Team 3 - Develop a communications plan to secure “buy in” from all key stakeholders. Team 4 - Design supporting process tools (e.g. templates for business case analysis, etc.), and identify potential new EA assignments with a projection of expected benefits.

16 The Executive Sponsors: 1.Work together to identify the Executive Agency process owner which will: a)Guide the new EA policy and process to SECDEF b)Provide oversight of the end-to-end executive agent process 2.Approve the action plan. 3.A ssure funding to launch and support four action teams to execute the rapid implementation plan. a)Action Items 1,3,4,- CMC funded b)Action item 2 – FLOW/AI Pillar resourced J4 takes the lead on communicating the case for change to the CINCs and Services. Executive Action Requested

17 Proposed Logistics Designated EAs for FLOW  Barrier / Construction Material - Navy  Medical Supplies - DLA  Bulk Fuel - DLA  Rations to include Bottled Water - DLA  Ground Transportation in Theatre - Army  Water - Army